Why Budgets never Work?

[raaman]

Why don't the budgets you make never work? What's happening? One great reason is that people budget for both income and expense. They sit down at the beginning of the month for making this budget.

They say to themselves, that ‘this month I am going to receive one hundred dollars’, and then they begin to see what they should spend that money on, which they have not received yet.

One of the simplest but most important lessons is not to plan with money that we have not received yet. The spending plan is always made with the money we have in hand.

 

[Kendy]

One of the reasons budget never works is due to the economy's inflation rate. There is no day I make a budget, when I reach the point of purchase, the prices of goods or services would be inflated and no matter my bargaining power, the seller would refuse because he would run at a loss if he sells it at the former price. Making a budget is a wise decision to make because it would guide you in marking your expenditure wisely but the challenge is how to stick to a budget effectively. Even when the scale of preference is adopted and the budget is placed, the coat of goods would always fluctuate and this fluctuations is always on the increase. Again, budgets do not work because if emergency situations. Here, emergency situations are also called unforseen circumstances and this is because, it was not planed for. There is a situation where an individual gets involved in an accident and definitely no matter the budget he had made, he would first need to prioritize his health and the budget would be used to receive treatment, which makes it rather difficult because such situations is beyond his control. The best way to plan a budget is to plan for emergencies as well.