What is the biggest challenges when budgeting?

[Mellorando]

Indecisiveness is one of the biggest challenges of budgeting, but with a little financial motivation, you can successfully tackle this budget challenge. There are a couple of ways to combat financial indecisiveness.Sticking with a budget requires persistence and planning. Don’t feel bad if you find yourself facing budget challenges; two-thirds of Nigerians don’t even have a budget! Some may create a budget but find it difficult to tackle the challenges of budgeting. However, with determination and proper preparation, you can overcome your budget challenges and get on the highway of financial success.
By budgeting, you know exactly where your money is going each month. If you don’t budget, you will find yourself short on money and not properly saving either. Creating a budget and sticking to it, ensures you don’t overspend, and it prevents you from living paycheck to paycheck. Budgeting helps you pay off debt, save money, and helps you grow your money by investing. A budget can also help you to learn to live below your means, so you stop spending your hard-earned cash on things you don’t need.

Budgeting challenges and what to do
about them

1 Being indecisive about finances.
2 Shopping impulsively.
3 Not having financial goals.
4 Not using the right budgeting method.
5 Fear of facing debt.
6 Eating out too much.
7 Not budgeting for savings.
8 Not budgeting consistently.

Ways to improve these processes to create a strategic plan that meets your business's financial goals.

1 Keep Budgeting and Forecasting
Flexible.
2 Implement Rolling Forecasts and
Budgets.
3 Budget to Your Plan.
4 Communicate Early and Often.
5 Involve Your Entire Team.
6 Be Clear About Your Goals.
7 Plan for Various Scenarios

 

[Bookwormlux]

The biggest fear that comes when budgeting your money is realising that you have so much to cater for than you'd have to spend and save at the same time.

This is a major reason why we see a lot of people finding it difficult to keep up with their saving habit and not necessarily because they are financially indiscipline, but the fact is that they did not really have enough money to take care of their personal needs and see be able to sustain themselves financially.

From my own perspective, is the biggest fear that people encounter during their being able to save or budget money for something else.

For someone who has a lot of money and resources by his side it is very easy to go about budgeting or savings but if you are struggling it will be a very very hectic task for you. This is a major reason why individuals out to make sure that they expand their income streams so that they will not completely be reliant on one means when it is obvious that that single means will not do them .

Most especially the people who are working for the government, they do not try to expand their income streams, and then budgeting becomes a problem.

 

[funmi]

When it comes to budgeting I think it is as crucial as even looking for money itself, because a wrong budget can destroy a life time hard work. I see people who just carry a certain amount of money to the market and they never took the time to prepare a budget and when they return back from the market, first they will be out of cash totally and next they will never be able to give an account of what they bought in the market because they must have spent more than what is necessary and bought somethings that are not of a necessity. At the end to may return back again very broke as they did not spend their money on the relevant things they were suppose to spend. So budgeting really helps us to minimize wastage. It helps us to ensure that we spend our hard earn resources on the rightful and needed items which are more pressing to us.

The only challenge now in preparing a budget is the challenge of the unstable prices in the market one might fix some items at a particular price and may get to the market to get another price which are usually higher.

 

[Kendy]

One of my biggest challenges I encounter after placing or making my budget is the fluctuations of market price. There is no single time I have sticked to my budget due to incessant inflation rate. I have the habit of always putting down my needs in a scale of preference, I adopt the economies of opportunity cost as well, where I let go of some wants in order to get my pressing needs. Budgeting had always been a guide because it helps me and my subconscious mind to be aware and guide me on how to spend wisely. There are times I have a little more money to spare, then I might not necessarily work strictly with my budget. There are people who usually find it funny when I write my needs on a paper, they might see it as needless but in the long or short run, most of them rather copied my method and according to them, it has helped the economize and reduce their spending excesses. There are many challenges that comes with budgeting which could be; indecisiveness of a particular product to go for. It could also emanate from the inability to have a financial goal.

 

[btaliat]

As good as budget planning, most people including me don't see the benefits. Not because it doesn't have but the problems associated with it won't let you even see the benefits.

Most time, I would have made and perfected my budget only for unexpected things to happen. If younger siblings don't need some stuffs, friends may need to borrow money for a while. Fuel that you don't accued more expense for will suck the whole budget as a result of erratic power supply. All these unexpected situations do constitute the first problem to me in planning budget.

The market forces and invisible hands in determining the price of goods and services are the next on my list. Most time, you will discover that what you budgeted for is not what you see. The price has gone up. And you won't even have any tangible reason for the increment in the price. Hence, invisible hands have done wonders.

Most time, wants may become needs. And we don't really make provision for it in the first instance. For example, everybody would have seen fuel for generating light as an alternative as citizens would have expected government to provide electricity. And in a situation where government fails for one reason or the other to make provision for it, then we need to spend above our budget and most time, outside our budget.

 

[Activator230822]

For me I think the best budget can be made by a person that receive their income for at least two times per month. So a two weeks budget I think can do something worth it. So according to me it's abit challenging for the hand to mouth kind of folks to do a good budget as they have limited resources.
Also the major challenge for budgeting is the lack of self discipline in matters of personal finances. Many folks would make a good budget on the paper but implementing that budget is something very different altogether. They would always buy things out of the budget absolutely and found themselves really struggling to meet their set plans.
The other common problem that my arise when doing the budget is actually lack of prioritization on the basic items. Many folks would rush for budgeting on luxury things and entertainment needs leaving behind food stuffs and other daily household used items.

 

[eldavis]

I think the biggest challenge i go through when making budgets is unforseen or should i say unplanned expenses. I believe this is one issue almost everyone has to go through as well. Like recently i started making plans on how to save up some Capital to get some equipment for my business startup, everything is actually going well or so i thought. Some things just came up that i didn't plan for and they are pretty much important. Now am currently working on how i would sort out everything before next year.

 

[Shaf]

Budgeting is one of the best ways to ensure you have a good financial habit and records and if you get the hang of it, you would not be able to let go. I always budget, but one of the greatest challenges I've faced is how to stick to it.

It's not easy to maintain the discipline to stick to it, especially if there are things you want and you can afford to do so. I avoid this by saving money from my paycheck then I make my budget around what I have left. It doesn't always work, but it helps most of the time.

Another challenge is prioritizing the items on the list. There are things that you may feel are more urgent but it turns out they are not, and someone can't really help with that too.

I always feel like having more money would help with those things I can't afford, but even when I earn more, there are things on my budget I can't get.

 

[Yusra3]

Budgeting can be a tedious task, but it's also one of the most important parts of your financial life.

The biggest challenge when budgeting is finding a way to make it work for you and that means making sure that you're budgeting in the right way for your situation. If you're an entrepreneur, for example, you might not want to budget by categories like "groceries" or "entertainment," because those categories can feel limiting and confining. Instead, try thinking of budgets as a series of smaller monthly payments that you'll make at the end of each month.

You'll be able to see how much money is available each month and determine where it should go so that everything stays on track with your larger goals and values.

 

[Ithedicious]

For me , I consider discipline to be the most important thing because without discipline you will not likely be able to achieve anything even if you plan your budget perfectly .

Discipline is needed for you to stick to your plans and arrangement. Normally people may be making a lot of money for themselves and they might earn much every month but saving is always the most difficult . The reason is because they are not able to stick to their plans or sometimes they are addicted to something that makes savings difficult for them . .

And people without future plans and arrangement of what they are interested to do with their money may not likely be able to realise any savings . Have plans of what do you have to do with your money and with that it will help you saves a lot of money than spending unnecessarily.

 

[Rubz]

There are a lot of challenges when it comes to budgeting. I feel two of the biggest challenges when it comes to budgeting are lack of discipline and shopping impulsively. Lack of discipline often comes in when one has already written or planned out one's budget for a particular amount of time and one isn't able to stick to that budget because one isn't disciplined enough to do so. Lack of discipline and shopping impulsively often work hand in hand. It is only a person who doesn't have enough self discipline that shops recklessly and impulsively without thinking of the future and without sticking to one's budget. One should be disciplined in other to avoid spending unnecessarily because it really takes a lot of discipline for one to stick to one's budget.

 

[Augusta]

For me budgeting is the easier thing to do especially if you want to start tracking your expenses and looking out to start saving but the hard part is keeping or sticking to the budget. The truth is that it isn't even easy to stick to your budget even when trying to buy things as you have listed them.

One just have to imbibe discipline if you know that you want the benefits of budgeting then you have to start sticking to plan.