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What To Do When Your Budget Isn't Working

January 13, 2021
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If you find that you’re not living within your budget every month, it’s time to take a step back to understand why. The following questions can help you find the issues that may be wreaking havoc on your budget and figure out how to fix them.

Is Your Budget Realistic? If your budget is not realistic, then you are immediately setting yourself up for failure. If you are underestimating your expenses based on your current lifestyle, then you are repeatedly going to fail. Develop a realistic budget, including your fixed monthly costs as well as your discretionary spending to get a true understanding of your monthly spending.

Did You Slash the Fun? If you cut out all the fun, you may be feeling deprived, which can lead to overspending. It’s important to have a little fun each month, so set a dollar amount for entertainment.

Is Self-Control an Issue? For many people, self-control is the main reason their budget isn’t working. It’s alright to splurge once in a while, but if it’s happening often, you need to find ways to live within your means. One strategy is to write down the financial goals you are trying to achieve and keep them next to your cash, debit, or credit cards. As you go to make purchases, look at your goals to decide if this purchase is worth it.

Is Budgeting Too Much Work? If you feel you don’t have the time to track your expenses and evaluate your spending, your budget is not going to be helpful. There are many good budget apps you can use that will make this process simple and less time-consuming.

Do Your Financial Goals Seems Unattainable? If you feel like you’re never going to meet your goals, you may find that you give up trying. While your goals may seem daunting, try setting up milestones along the way, so you can see the progress you are making. Take the time to celebrate those milestones to help you stick to your budget.

  

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Vanderbilt Financial Group is the marketing name for Vanderbilt Securities, LLC and its affiliates. Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. Registered with MSRB. Clearing agent: Fidelity Clearing & Custody Solutions Advisory Services offered through Consolidated Portfolio Review Clearing agents: Fidelity Clearing & Custody Solutions, Charles Schwab & TD Ameritrade Insurance Services offered through Vanderbilt Insurance and other agencies Supervising Office: 125 Froehlich Farm Blvd, Woodbury, NY 11797 • 631-845-5100 For additional information on services, disclosures, fees, and conflicts of interest, please visit www.vanderbiltfg.com/disclosures

This newsletter was prepared by Integrated Concepts Group, Inc. The opinions expressed in this newsletter are for general information only and are not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. The views expressed are those of the author and may not necessarily reflect those held by Randall Wealth Management Group or Vanderbilt Financial Group. Material presented is believed to be from reliable sources and PSEC makes no representation as to its accuracy or completeness.