This post may contains affiliate links, which means I receive a small commission at no cost to you. Please read the full disclosure here.Before we jump into the #1 reason budgets fail, let’s talk about the word budget first.
When hearing the word “budgets,” most people cringe. They don’t like the term. They don’t like to live within a budget. It is WAY too constricting for their lifestyle. Well, I agree. Budgets aren’t fun. That is why at Money Bliss – we call them a Cents Plan.
A Cents Plan put your “Cents” with your “Sense” to come up with a Plan.
When developing a Cents Plan, the purpose is to align it to your Dream Big Vision. Put money in the areas that you most desire. Not fit it into a budget.
So, back to the post on #1 Reason Budgets Fail.
#1 Reason Budgets Fail
They are changed WAY too often.
Yes, budgets fail because they are changed way too often. They are updated monthly to reach the ultimate zero budgeting. Mid-month, a shortage in a cash envelope happens, so, money is quickly moved from one envelope to another. The budget isn’t working, so you adjust it again to make it just right.
The reason budgets fail is because they are constantly changed. So, how can you avoid the #1 reason budgets fail? Buck the trend today.
Learn the Simple Fix for the #1 Reason Budgets Fail:
1. Set Up Cents Plan for a Year
For many, the thought of setting up their budget for the whole year may sound CRAZY! Personally, after many failed attempts using other budgeting gurus templates that said to set it up each month, we tried and failed miserably. The reason was simple enough – we didn’t account for what was coming up. Corporations set their budget for an entire year and they don’t change once approved. Once we started setting up our Cents Plan for an entire year, we started thriving with our money. (Just to be fair…we were still paying off debt at the time. But, we were making progress and the stress was gone.)
2. Resist the Urge to Change It
This is directly tied to the #1 reason budgets fail. Resist the urge to change it. When the Cents Plan is set up properly, everything should be accounted for and sinking funds started. There is zero reason to change it. Don’t allow your emotions to get the best of you.
3. Understand it will be Harder before it gets Easier
Yes, yes, it will. I can promise you things will be tougher before it gets easier. That point is when most people give up. As a money coach, I always tell my clients…
The first three months are the hardest. You are changing old habits to align with your Dream Big Vision. It will be harder before it gets easier. I can promise that. Also, I can tell you once progress is made lining up your vision in life with your money – you won’t go back. Find that place in life – “Where Cents Parallel Vision.”
4. Stay Consistent
Don’t give up. The first month you stay on track. Then, you splurge a little too much in the second month. Then, you are back on the wagon for the third month. You have created your own personal roller coaster with money. Stay consistent. This is where Slush Money is so utterly important. Honestly, I truly believe Slush Money will led to financial freedom.
Related Post: 4 Rules and Advantages of Slush Fund (Pocket) Money
5. Remember Your Dream Big Vision
Back at the top, the discussion on a budget vs Cents Plan occurred. Here at Money Bliss, we are all about “Where Cents Parallel Vision.” If you can’t remember your vision, then there is no point to live within a budget. The goal is to line up your spending to your Dream Big Vision. If you don’t put it in writing, then your vision is like a fleeting thought in the wind. Focus on your Dream Big Vision to have long-term success with money.
6. The Feeling of Failure Sets In
Don’t give up. Like I said before, it will be harder before it becomes easier. The fear of failure can be immobilizing. Don’t let failure set in.
The number one reason budgets fail…they are changed to often. Don’t fall victim to this tactic. Learn how to budget once a year. It will be the breakthrough needed to change your life with money. Use the tips to stay motivated and not have your budget fail. Check out our shop to help you succeed. The same tools we used to pay off our debt and move through the Money Bliss Steps to Financial Freedom.
Comment below on why you have struggled with budgeting.