4 Main Reasons your Budget May Fail

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4 Main Reasons your Budget May Fail

I read an interesting article on Moneyville.ca called “The Simple Secret Behind a Budget” by Krystal Yee.

1. No knowledge of past spending habits.

I suggest tracking your spending for at least 3 months prior to creating the budget.   This will give you the data required to create a realistic budget so you don’t set yourself up for failure.

2. No defined goals.

We agree with the article, be specific! e.g.  Will spend less than $50.00/month eating out (not simply reducing restaurant and expenses generally)

3. Quitting too soon.

You really need to track your expenses for several months (as noted above) to learn why your budget is not working.

4. Not realizing what a budget is meant to do.

Control of your finances will leave you feeling better- you’ll be in control.