budgeting, mentor

Budgeting – 5 Ways to Make It Work

I recently read a blog, 5 Big Reasons Budgets Fail by Geoff Williams and posted it yesterday on my Facebook.

As I see repeatedly, this blog tells us how and why budgets fail.  I’m going to review each of the points discussed in this post and highlight ways budgeting and, more importantly, money management can work for you.

Budgets restrict you.   

Budgets only restrict if you have not allowed contingencies to take into account the unplanned.  Cars will break down, computer equipment will fail, and kids will get sick. Unplanned emergencies happen.

Does your budget have an emergency fund component?  If you budget for the unexpected, your budget will not feel restrictive.

Budgeting is in your control and should be a flexible supporter to your primary goal.

You lack financial education.

You can blame the educational system, your parents,  or anyone else you feel should be responsible teaching you about money.

Ultimately, who is responsible for your continued education?  There are many resources and tools to teach financial management – like yours truly or a plethora of other professionals.

Find a financial mentor and/or tools that resonate with you and help you in a non-threatening and supportive manner.  You will not learn what you don’t know until you are enlightened to know what you need to know.  Budgeting is only an element of the total picture.

You’re too emotional.

Why do we allow this feeling of lack control us?  We have the luxury to control what are money does for us and to make more.  Again, there are several resources available to adjust our money mindset.

Money is a constant and like traffic signals, a necessity to maintain flow. Normally, we pay little attention to the traffic signals unless they aren’t working properly. Where is your money not working for you?

Look at your money as a tool to allow you to live your life.  If it’s not working the way you would like, what attention does it need?  Research and seek out the time and tools you need to take control.

You don’t think enough about your purchases.

Unfortunately, we live in a culture where abundance is the norm.  How often have you made a purchase, only to get home to realize you replicated the item?

Additionally, we make purchases and/or decisions without considering the overall cost.  Recently, my son had this experience when he purchased a boat for $200.  The motor repair was more than he anticipated and it had to be licensed before the vessel ever touched water.

Do your purchases support your overall goals?  Did you consider the overall impact this will have on your budgeting?  If you struggle with this, seek an accountability partner to review your spending patterns.

Your budget doesn’t give you a reason to follow it.

Budgeting doesn’t need to dictate and won’t work if you look at it as the end all.  Outline a budget that really outlines the “what and why.”  Like most tools, they will only work if you have a plan and purpose for having the tool.  Just like your television remote, you don’t expect it to control your garage door.

Why do you want to budget your money?  Do you have an overall goal and plan that money will serve?

I would suggest seeking out a money mentor to hold you accountable and sees your goals.

Conclusion

Budgeting and money management are fundamental in life and serve a purpose.  It can be the tool to help get you to your dreams and destiny or it can be a tool that is useless if not utilized to serve you.  Like traffic lights, money will be a constant in our lives unless we choose to live a nomadic life in the wilderness.

Feel free to reach out to discover where money can better serve you: www.magneticmoneymentor.com.

 

Photo by Tverdohlib.com at DepositPhotos.com

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