You know the drill. You decide that you’ve had enough, you really need to start saving your money, and you decide that a budget is the way to go. A week or two later you have thrown the whole thing out the window and decided you just aren’t someone who can stick to a budget.
Here’s where you went wrong.
1: You didn’t take into account everything
It’s all good an well to have a general idea of what your expenses are, but failing to consider all the little expenses like bank or credit card fees, international transaction fees, monthly app subscriptions, music downloads, going a few dollars over on your phone bill, or interest paid can add up to far more than you would think.
Instead of going by memory, actually look at your bank transactions and account for EVERYTHING. That way you won’t be surprised or disheartened when your budget blows out and you have no idea why.
2: You made saving a manual process
If you make the decision that you will transfer across any extra money you have at the end of the week to a savings account, it’s doubtful you will have made much progress on your savings after 6 months or even a year. Instead, set up an automatic transfer to occur on the day you get paid so that you save without having to think about it.
Another tip is to transfer the money to a different bank, so that if you had to access that money you would have to wait a day or two for the funds to clear. This can help avoid any impulse purchases. If you can’t get it right then and there you might think twice before draining your savings.
3: You went too hard too fast
Setting an overly ambitious savings goal that leaves you with very little wiggle room or disposable income can mean that you get burned out quickly, feel restricted, and decide to throw the whole thing out the window.
Instead, decide on an amount of spending money that would be sensible for you, and a a savings goal that is more achievable long term. You are much more likely to stick to a budget if it still allows you some freedom with spending so that you can enjoy life at the same time as saving.
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