So you've tried to budget and it's just NOT working. What do you do next?
The most common reason people fail in their budgeting attempts, is that the budget was inaccurate in the first place and did not account for all their expenses.
This doesn't mean that "budgets are bad" - it simply means you need a new budget.
Let's be honest. Budgeting isn't for everybody. Some people will go through their lives and never stick to a budget - some people have unfortunate circumstances, others are just lazy. If you are not a successful budgeter, that's OK - you can walk away.
But if you are just feeling like your budget is "useless" because it didn't take into account a REALISTIC cost-of-living for you...it's time to meet Mr. Diary.
Whenever I can't see where my money is going (besides down the drain), I carry a diary around for 1 month and keep a careful account of my expenses. Either keep it in your pocket or handbag so you can write in it throughout the day, or by the bed so you can write in it every night.
RECORD EVERYTHING: The $2 you spent on a can of drink at the shops; the $50 gift you bought your mother for her birthday; your $5 weekly lotto ticket. There are 101 expenses you probably didn't even realise you had!
Once you've completed your day-by-day diary for 1 month, it's time to sit down again and reassess your budget. This time, you might find that you are spending ALL of your money...no savings left over...it's hopeless!
Well, at least it's accurate. This means that you can see where your money goes and develop an action plan so that you can reduce your expenses in these areas.
Did you really need a can of drink, or could you have brought along a water bottle from home? Would your mother have been just as happy with a $25 gift?
Budgeting isn't just about finding out what your expenses are, but planning ways that you can save money in all of these areas.
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