How often do you hear someone clamor on about just how easy it is to stick to a budget?
In the simplest form, the budget is nothing more than tracking what you spend versus what you make, plain and simple. Budgeting really is not made to be complicated but truthfully taking your expenses and making sure that number is less than what you make, whether that means cutting your cable cord, saying so long to your data plan or eliminating that shopping spree you’ve allowed yourself to enjoy on a regular basis at your favorite department store isn’t quite as simple as some make it.
Yes, you can just go ahead and start hacking away, and that can get you so far, but what if there isn’t enough money coming in as far as income goes? Can you really begin to even contemplate saving money if you’re not making enough to pay even the essentials? At that point, the budget process is tossed aside quickly and with extreme prejudice and you instead decide to scrimp and save where you can and simply wait to pay bills when you have the money, which leads to lower than average credit scores and a reputation that lenders don’t exactly love to see.
Another budget breakdown that you often can’t account for are expenses that you really don’t take into consideration. That two a day coffee habit, stopping for lunch every day and spending money on something as simple as a newspaper or candy bar can lead to thousands of dollars spent per year and even as much as hundreds per month. Ask yourself, how often do you eat out at restaurants, is it breakfast, lunch and dinner some days, and if so, do you realize that accounts for nearly $500 per month in added expense?
When a particular bill or expense, like a gym membership or cable, goes up due to rate hike or added services, do you pay attention to that? Do you adjust your budget? Chances are, you don’t.
Not sticking to a budget is nothing new, but it also isn’t beyond the realm of expectation to not have one at all simply because you haven’t the slightest idea where to start. Sure, a budget can be set up rather easily but staying the course and examining it beyond the norm or not taking into consideration a lack of income or literally all the purchases and expenses you have daily is going to translate into a lot of effort and very little results or outcome as it relates to being able to save money or plan financially for any sort of future.