Wondering why you’re family budget isn’t working?
You sit down, put pen to paper, and plan out your family’s budget.
You’re feeling good, and confident about what’s to come. I mean…you’re practically richer already! Right?!
A few weeks go by, and your finances are right back to where they were “pre-budget”…why?
5 Reasons Your Family Budget Will Never Work
1. You Never Look Back
In most situations, it’s wise to leave the past in the past, but that doesn’t mean you shouldn’t learn from it!
Looking back at your past spending habits should be step number one in building a successful budget for your family.
If you don’t know where your money is going now, how do you expect to redirect it somewhere else?
2. You’re Lying To Yourself
Either you’re not being honest about where the money has gone in the past, or you’re not being realistic about how much you can change going forward.
Many people go overboard with their budget, scaling back too far to a point that just isn’t possible, thinking they can make drastic changes to support it. The truth is, while there are many ways to stretch your grocery budget, if you normally spend $120 a week on groceries, $60 a week isn’t going to cut it!
3. You Justify Breaking The Rules
You make little purchases here and there (and sometimes everywhere else!) and justify them as “earned,” or “deserved”…wrong!
You, and your family, deserve to have financial security. You will never achieve that if you are constantly picking up little “treats” that aren’t in the budget.
4. Too Many Hands In The Cookie Jar
While it’s crucial that you and your partner be on the same page about money, and your financial goals, if you’re both dipping your hands in there things can get messy!
The best thing to do is create your plan together, but then have one person oversee it.
We use the cash envelope system in our house, and this puts the cash in each of our pockets for the expenses we are responsible for, no more, no less.
5. You’re Not Making Enough Money
Maybe you can’t scale back any more, or maybe you don’t want to. Either way, if your expenses are outweighing your income, you need to start making more money!
Look at getting a part-time job on the side until you’re in a better position, ask for a raise, or start a few “side-hustles” you can manage from home.
There are many ways to earn money online that can be equal to, or even surpass, the income you would earn from a second job!
At the end of the day, the choice is yours to make. But it is important to remember that every financial decision you make now will be felt years down the road…so choose wisely!
Have you struggled with these budgeting mistakes in the past? How did you overcome them? Share in the comments below!
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This post was written by Julia:
Julia is all about rocking “Mom life” in every way! She has a husband of 7 years, is mom to a spirited 3 year old daughter, and lives in Niagara Region, ON, Canada. Check her out on RockItLikeAMom.com for lots of easy recipes, DIY projects, parenting articles, and up front Mom talk!
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Jill says
I would add that people often forget to factor in quarterly or one time only payments. Your annual property tax bill, your quarterly water/sewage bill, your annual vehicle registration fee, possibly owing on your income taxes at the end of the year. Those types of bills can be substantial but people often forget to factor in saving up for them.
I respectfully disagree with your advice to “ask for a raise” if money is short. Employers can’t give you a raise just because your bills exceed your income. Ask for a raise but only if you can demonstrate that your worth more money to your employer. Asking for a raise because you’re struggling financially puts both you and your boss in an awkward position.
Alida says
You are so so right about the quarterly/annual payments and factoring those into a budget! And, yes, make sure you are worth the raise to your employer. Thank you for sharing!