Struggling to balance your spending? You’re not alone. Here are five obstacles that throw many people off course — and how to overcome them.
1. Analysis paralysis
You feel that you can’t create a budget until your system is perfect.
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Why it happens: If you’re a perfectionist, you might be afraid of making the wrong choice — so you make no choice at all. |
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The solution: Just start somewhere, maybe by tracking just one or two important categories. Remind yourself that even an imperfect budget is better than no budget. |
2. It’s too complicated
Last month, you resolved to keep track of every cent. You kept it up — for two days. Now you feel defeated.
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Why it happens: "People assume budgeting has to be a lot of work, when really it’s about finding simple and realistic solutions and habits," says Judy Lawrence, money coach and author of The Budget Kit. |
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The solution: Keep it simple and give it time. Whether you use a notebook or an app, tracking expenses should take no more than 10 to 15 minutes a day once you get the hang of it — but all new habits take time. |
3. Surprise expenses
You didn’t include that tax bill. Or a buffer for emergencies such as car repairs or ER visits.
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Why it happens: People tend to focus on what’s right in front of them. |
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The solution: Brainstorm annual expenses, potential emergencies or events, and even occasional seasonal spending like gift-buying — and add a bucket for those. |
4. The “buy” button
Love daily deals and downloads? Buying a $2.99 app or streaming a movie for $4.99 doesn’t seem like much, but those small purchases add up.
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Why it happens: If you’ve registered your credit card information with an app or site, the ease of buying can make you forget those transactions. |
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The solution: Before you click “Buy,” take a five-minute pause to consider whether you really need the purchase. If you use a budget app or spreadsheet, track your online spending — you may be surprised when you see the total. |
5. You’re a giver
You’re good at sticking to a budget for yourself, but when it comes to your friends, your partner or your kids, you like to be generous.
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Why it happens: “Many people find it’s easier to justify spending on other people than on themselves,” says Lawrence. When it comes to gifts, “the budget rules go out the window.” |
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The solution: Build gifts and treats into your budget. Just because they’re not for you doesn’t mean they don’t count as expenses. |
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