You try, you really do, yet despite your fervent efforts to stick to it and get it right this time; when it comes to your personal budget, you still fail. Take heart, most of us do.
A monthly budget usually starts out with enthusiasm and a ‘plan’ that quickly transcends to overlooked items, and forgotten allocations. At first you care, but mid-month comes along and you realize you’ve digressed. So you try to regroup and save it. But as items continue to fluctuate and little unexpected expenses start to add up, it’s not long before you’ve moved on and no longer know where your budget is.
Why does this happen? Is there a way to appease the ominous budget gods and actually master it?
The good news is that there are clear reasons as to why budgets fail, despite all good intentions. And even better news, there is a way to overcome your budgeting woes, and it won’t require any maiming or peddling on your part.
Top Reasons Your Budget Fails
Regardless of how much you make, a budget will always rely on what your monthly output entails. How much do you owe and have to pay each month? Your expenses compared to your intake (your monthly income) is where many fail first. If what you owe supersedes what you earn, you are already in trouble.
This advice is obvious, and most of us, interested in budgeting to begin with, already know you can’t spend more than you make. So why can’t a budget stick? Here are other factors that impede budget success:
Budgets fluctuate and or inflexible
– even if you add exact costs of consumption of each item you spend on, there are some items such as food and gas that fluctuate so much (some on a daily basis) that it is nearly impossible to account exactly how much you will spend in a month on these categories. You end up having to guesstimate these, and when you are off, you feel it in your budget.
Budgets don’t accurately incorporate for surprise expenses
– we all realize that the unexpected can and most likely will happen. You may even have a section of your budget specifically for the potential “unknown”. The only problem is that there is no way to know just how much an unexpected might cost. You may never have allotted enough for a serious and very expensive unexpected.
Budgets tend to start and end with unrealistic expectations
– such as, you commit to be account for every penny, never forget to record an item, and not overspend so you have more money saved. The reality is you’re not perfect, and if you’re in the habit of not budgeting at all, this type of detailed bookkeeping can become burdensome very quickly.
Tackle the Reasons for Your Failed Budget with One Action
There is another way to tackle budgeting besides trying to institute better financial habits cold turkey. It’s with Whole Life Insurance.
Whole Life is the road map to debt consolidation, cash flow, fluctuating expenses, and it prepares you for the future!
Sounds too good to be true, we know, but the fact is that with Whole Life you can tackle all of the reasons your budget fails and then some.
With Whole Life you can:
- Access the cash value of the policy for any reason. For example, consolidate your debt to decrease your output. This will help your debt to income ratio, giving you more to work with each month.
- Cash value is available for the unexpected in life. If after you’ve decreased your debt to income and still need emergency cash for an unexpected, you will have it at the ready.
- Your expectations with Whole Life will be on target. You expect that it will be there to provide you with the financial means necessary to stay ahead financially, and it does. You expect that you will have access to its cash value for things you need (even things you desire), and you will. You expect that it is set up to provide death benefits when you pass, and it does.
Yes, there are similar alternatives to support your life like, a loan from your bank, borrowing from a friend or family, or being disciplined enough to aggressively save.
But let’s be realistic, if you’re budget is continuously failing, the aggressive saving option is not going to fare much better. A loan from your bank (if you are approved and the terms are reasonable) will only add to your debt. And borrowing from friends, the potential negative outcomes outweigh the need to ask.
With a Whole Life Insurance policy, you can avoid having to resort to desperate measures in order to be on top of your financial responsibilities.
Finally a win-win and without much ‘trying’ involved! Implementing Whole Life into your financial plan and budget will finally get that ominous budget god off your back!