Why you find it hard to budget?

budgetbunny

Hello!

I am new to these forums and I'm really keen to understand why you find it hard to start or stick to a budget!

For me, I find it difficult to maintain updating a budget each month because I'm scared to look through my spending for the previous month!

What about you guys? Would be great to hear some different perspectives

getmore4less

Change tactics look forward at what you want to spend and try to stick to that by recording as you go. rather than spending and looking back.


Budgeting is planning what you want to spend your money on.


Whats the motive for a budget, having goals that are important is usualy a good way to get on top of the spending and allocation of resources

Dawning

I found it hard to budget because I had serious head in the sand syndrome.
When I eventually forced myself to look at my income and outgoings it was very scary indeed.
It's taken me a couple of years and a job promotion to get my finances sorted, and accept reality. Now I know how much I can spend on different things each month. I'm not perfect, I quite often go over my allotted amounts for say, food, but I claw it back from elsewhere.

budgetbunny

Dawning wrote: »

I found it hard to budget because I had serious head in the sand syndrome.
When I eventually forced myself to look at my income and outgoings it was very scary indeed.

Thanks for your reply!

I agree, I think fear is a huge problem that stops successful budgeting - how did you get past it and eventually force yourself to look at your income/outgoings?

Dawning

budgetbunny wrote: »

Thanks for your reply!

I agree, I think fear is a huge problem that stops successful budgeting - how did you get past it and eventually force yourself to look at your income/outgoings?

I completely agree with you about fear being a big barrier but the alternative is what I experienced...
I had to get past it because I was in a mess. I was middle aged, newly divorced, trying to deal with finances on my own for the first time in my life and I just spent recklessly, and let it drag on for months. Then one month I realised that if I didn't get some sort of control immediately, I'd have no money left for food the following month.

If you read some of the stories on here, my experience is fairly typical. A lot of people find themselves in a deep hole and it takes a big kick up the bum to make them sort out their money.

If you can't bring yourself to look at your overall spending just at the moment, how about making a start by looking just at one category of spending, such as your house outgoings. So things like rent/mortgage, council tax, utilities, insurance, the essentials you have to spend and that are usually fixed sums each month. Or if you don't have household expenses, have a look at your clothes spending or nights out or whatever.
You can use the MSE budget planner - I found it really helpful. But honestly I really try to encourage you to grit your teeth and look at all of your spending. You will be scared before you do it, you'll be scared during, but afterwards you will feel happy that you've tackled it. Even if you are hugely overspending you will feel better that at least you've done it. You'll feel a bit more in control. And can start to cut back.

Edited to add - also, if you have any debts, visit the Debt Free Wannabe part of the forum. I never posted there much but I learned so much and nearly everyone there has felt the fear you're talking about too.

budgetbunny

Really really helpful advice. Thanks for sharing your experience, much appreciated!

RobTang

Personally i'm just lazy, I try to keep track of things but I just end up forgetting to write anything down.

In theory I have a set budget of reg bills + savings and a generic pot to spend on stuff, but short of big one off purchases I never seem to be able to spend anywhere near my stuff pot limit.

I should probably start recording everything so I really know where my money is going.

YORKSHIRELASS

For me taking control of my finances was a huge turning point. I realised that:
a) I was in a mess financially and if I carried on spending this was going to have a huge impact on my life and my family
b) The only way that I was ever going to get out of this mess was by being honest with myself and buying things that I could afford rather than just wanted or thought I should have
c) The only way I could make decisions about my spending was by knowing how much money I actually had to spend

I started keeping a simple spreadsheet breaking down everything that went in and out of my main bank account. I found it really tough to begin with but it has got easier over time - and my spreadsheet has grown! Now I cant imagine not knowing how much I spend on petrol in an average month or how much is in the bank. I cant believe that I used to sometimes hand over my debit card and not know if the payment would go through.

I read so many stories on the debt forums of people who are so obviously in denial and that was me once - but never again. Good luck.

MPH80

A bit of background first on me. I found myself in £28k of unsecured debt with nothing to show for it. I'm also a bit of a tech junkie - always buying the latest kit.

I only got into the debt because I was appalling at budgeting and managing money.

My turning point came when I got sent an annual loan statement and it showed the amount of interest I'd paid. I realised it was more than a particular thing I wanted at the time (this was 2002 - 10 years ago now - can't even recall what) and I decided that enough was enough and I wanted that interest for myself.

So (being a tech junkie!) I bought a copy of Microsoft Money and entered every bank statement I had into it - turns out - I had quite a lot, but most still in their envelopes (back to 1994!) I then used that to see where the money went and to stop spending on areas I didn't need. It actually shocked me, but it then got me into the habit of tracking spending daily (for 3 years or so I tracked every penny - including cash). It still saddens me to see this massive dip in my 'net worth' - and I wonder where I could be now if not for that - but I got it back on track.

Interestingly - it also made me question the value of the kit I was buying, so while I still love my tech, I'm not a junkie who 'must have' the latest thing if I can't see the value it'll bring me.

M.

pineapple

I think some people are addicted to spending full stop - avoiding temptation is one solution though not always possible. Many years ago I worked in a city centre. I would go out at lunchtime in one set of clothes and come back in another :eek:. Fortunately our incomes could take the hit but things change....

Then we have the growth of plastic which almost encourages people to get into debt. And it's not like spending real money is it? :rotfl:One solution to this is to draw out your spends for the month and put the hard cash into weekly envelopes.

Also it's too easy not to take annual payments etc into account. When I sat down and worked out the annual commitments properly it was horrifying to see how tight it was.

Finally we all know that if you don't think about a problem it will go away. Stick your fingers in your ears and sing la la la. Simples!

nonnatus

I find making a budget really easy, and I actually enjoy doing it, it makes me feel all warm and fuzzy and in control.
I am hopeless at sticking to the budget though! There is always something unexpected that crops up and once I've spent that, I tend to blow the whole thing.

This month, for the first time, I have physically taken £200 from my account in cash and frozen my cards (credit and debit) in a plastic container in the freezer. There is NO WAY of exceeding my budget without first thawing out the ice, which I figure will provide enough time to think first of a way around the problem.

Day 4 and I have spent around £8. (this is for all food etc for me and two kids). Not going out today and have enough things in for the long weekend, so fingers crossed it will still be only £8 spent by tuesday.

I know it's all a bit extreme but I have no other way of resisiting temptation.