Do you go through the process of creating a budget, only to find yourself overspending week after week?
This can be so frustrating.
You know what to do in theory. You have your plan. All you have to do is follow it.
And, yet, you do not.
So, you beat yourself up for not following the plan and vow you will have more discipline, more self control, next time.
Only to repeat the cycle all over again.
If this is all to familiar to you, you are not alone. This is a very common issue and once you figure out the root cause (blowing your budget is only a symptom), you will find it much easier to follow through on your plans.
There are three main reasons for straying from your best laid budgeting plans:
1. Your budget is flawed.
2. Your budget is not in alignment with your core beliefs.
3. You are fundamentally opposed to a budget, which is basically a diet for your money.
In the case of reason #1, it is easy to correct. Figure out where you are miscalculating how much you need for a particular expense category and adjust accordingly.
For example, if your grocery or gas budget is the same as last year, chances are you need to allocate more funds to this expense since prices have gone up. Or, you may need to allocate funds to pet expenses, auto or home repairs, or braces for your child, especially if you have expenses now that you have not had in the past.
The easiest way to find the category is to look at your recent spending and see if it is more or less than you are budgeting for.
For reason #2, you have to become mindful of your thoughts and those little comments that pop up when someone says something or you read something about money. This can be a little more difficult to figure out and you may need to have someone you can talk to. Often, just saying something out loud makes it so much easier to call BS on.
For example, even though you want to spend only $50 per week on eating out, if that little voice is telling you that you deserve to treat yourself, or that you do not have time to meal prep, or that you need to support your local diner during these difficult times, or that you are a terrible cook, you are probably going to spend more than $50 on eating out each week.
When there is a disconnect between what you want to do and who you are, who you are will win.
When it comes to reason #2, you need to consciously reprogram your beliefs so who you are is aligned with who you want to be. Start acting and thinking like your future you and you will become him or her.
This takes a little more time and effort, but it is so worth it! If you want to see results faster, work with someone (whether me or someone else) who can help you uncover those beliefs that no longer serve you (or future you) and replace them with more empowering thoughts. Future you will thank you.
If reason #3 is your downfall, you can easily circumvent the budget/diet mindset by following the income allocation method. Let’s face it. People hate budgets. Budgets work best for businesses, when there is less emotionality involved.
Using the income allocation method divides your money into buckets based on a percentage, not a dollar amount, so your allocations change with your revenue. Every penny that comes into your account has a place to go and you can make your purchase as long as there is money in that account. No money? No purchase. Making just a few tweaks can make it so much easier to follow your budget and achieve your financial goals.
If you have questions about these reasons or how to use this information to your advantage, please email me to discuss. Helping you succeed is part of my mission.