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5 reasons why your budget could be failing


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“CHINKEE, I’ve tried my best to make both ends meet. However, no matter how hard I tried but it still won’t fit!”

Sometimes, the truth is, no matter how we set our budget, it fails. Are you also one of those people who cannot quite fig­ure out why your budget fails?

Here are five common reasons why your budget fails:

  1. You’re not flexible and open to change

Budgeting can be chal­lenging. When the actual execution of the budget comes, you will realize that a few tweaks and adjustments are needed. If you’re too restricted to your budget, you may end up maxing out your allot­ted funds instead of actu­ally seeing a surplus.

Remember that it is OK to be ambitious about the budget but being realistic is also important. You can try cutting back on a few areas at a time instead of completely overhauling your lifestyle overnight. If you cannot carry out your budgeting plans, it will most likely fail.

  1. You don’t set money goals

It always helps to set a goal and set your eyes on the prize. “Getting rich” can be a goal but it is too broad for a goal. “Paying off debt” is also a great goal but then again, it may be too general.

Goals need to be S.M.A.R.T (specific, measurable, achievable, realistic, and time-bound). Try making sure that your money goals are SMART. For instance, instead of putting “pay off debt” as your goal, why not determine to pay off a specific amount in a given period of time? This is an example of a SMART goal.

  1. You are not on the same page with your spouse

If you want to maintain your discipline when it comes to the implemen­tation of your budget and your spouse is not on board, there is a great chance that your budget will fail. And this could worsen if your spouse is the spender be­tween the two of you.

Sit down and discuss the budgeting scheme with your spouse. Also try to revisit your financial phi­losophies and make sure to have all the numbers ready. Communication with your spouse can make a huge difference in your budget.

  1. You didn’t plan for emergencies

A budget is well and good until your car’s bat­tery gives up. Emergency expenses can completely derail a carefully planned budget if you do not ac­count for them. Before even realizing it, your monthly budget can be gone way before you’ve paid your bills.

Make sure to include an emergency fund in your budget. Aim to have at least six months in living expens­es saved and even shoot for more if you can. Think of it as an administered personal insurance policy.

  1. You didn’t give it enough time

Many people become im­patient with their budgets. Some obsessively check on their bank balance to see how they are doing. The truth is, budgets take time, patience, and even a bit of trial and error before you can actually see the significant results.



Have you made and planned for your budget? What are some factors that are causing your budget to fail?

“Instead of figuring out how to make ends meet, why don’t we cut down our expenses to make our bud­get fit?”

To know more on how to budget, please check out my book “My Badyet Diary” now available at bookstores and shopping sites.

What do you think?

Written by Tempo Desk

Tempo 28 November 2019, Thursday issue

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