Budgeting is an incredibly important thing to do. However, it can also be incredibly difficult! If you’re struggling with creating and sticking to a budget, don’t give up just yet. The secret to conquering your budget is knowing what’s holding you back.
7 budgeting challenges to overcome in 2022:
- Eating Out Too Much
- Doing It All In Your Head
- Making Impulsive Purchases
- Not Planning For The Unplanned
- Saving Aimlessly
- Budgeting By Yourself
- Setting Unrealistic Goals
Which of the above applies to you? Be honest! Once you overcome your budgeting challenges, you’re guaranteed to kick your budget’s ass. Let’s break down these budgeting challenges and learn how to beat them.
Budgeting Challenges
1. Eating Out Too Much
Perhaps the ultimate budgeting challenge.
We’re all guilty of this one!
Unfortunately, when you prepare your budget, one of the first areas to cut back on is eating out.
While that’s all well and good, when it comes time to actually cook a meal… you’re at a loss. That familiar sly thought creeps into your mind – “why not just order a pizza?” After all, you just had a long day of work, you deserve it.
No. You don’t!
Once you have a handle on your budget and made some solid ground, only then you can treat yourself to your favorite overpriced comfort foods.
So what’s the alternative?
Learn To Cook
If you’re going to get a grasp on your budget, you’ll have to learn to cook.
Cooking doesn’t have to be a burden. In fact, it can be quite fun!
When you first start learning to cook, just don’t go for anything too fancy.
Chances are, you’re not going to be able to replicate the pasta from your favorite Italian restaurant on your first try.
One method to help you get into meal prepping is to use a meal service such as Hello Fresh. They sends you the ingredients for two to six meals a week. You can customize the meal plan to serve either two or four people. Additionally, you can customize the meal plan to fit your dietary needs and preferences.
Remember to do the math first though! It’s much cheaper to pick up the ingredients yourself. You just need to work out whether the convenience of receiving pre-built packages is worth the extra cost.
If you don’t want to pay someone else to do all the meal prep for you, you can always learn to do it yourself.
Find simple versions of your favorite recipes, and take one day a week to prep all your meals. This will make cooking during the week much easier.
Short on time? Try some simple 15-minute recipes from Busy Budgeter.
2. Doing It All In Your Head
When you think about budgeting, you probably imagine some over-the-top complicated spreadsheet.
Or worse, you try to keep track of your complex spending habits in your head.
Don’t!
Sit down with your bank statements and take careful, minimalist notes. Try simply documenting money in versus money out. Pro tip – the first number should be higher than the second.
Being confronted with every last transaction forces you to face up to any inappropriate spending. Did you really need extra guac with your burrito? (Yes, yes I did!)
Alternatively there are tons of budgeting apps and websites you can use to make this process simpler. Some of our 7 Best Investment Apps 2022 also do this for you!
For example, the budgeting app Every Dollar keeps track of your income, expenses, and savings. You still determine where your money should go. There’s no formula telling you what to do. If you find it important, you get to determine how much money you’ll spend or save.
Check out the following list of budgeting apps to find the right one for you and your money:
Using a budgeting app will ensure you stay within your boundaries every month. Additionally, some budgeting apps connect with your bank accounts. This shows you in real-time how much money you’re saving. Seeing how much you save in real-time isn’t just informative, it’s empowering!
One of the hardest budgeting challenges to overcome is maintaining motivation. Seeing some immediate results provides the perfect dopamine release to keep you on track.
So what are you waiting for?
3. Making Impulsive Purchases
- Use Cash. It’s easier to spend money with a debit or credit card than it is to spend cash. Rather than setting yourself an impulse purchase limit and then carrying around the plastic card, pull the money out in cash. Keep the cash in an envelope or in your wallet. When you feel the need to make an impulse purchase, only use the money in your envelope.
- Wait 24-Hours. Okay, I hear you. You want to be impulsive. NOW! However, waiting just 24-hours before making the purchase is still not a long time. It simply allows you to evaluate if you truly want the item. Not craving it the next day? You don’t need it.
- Talk About It. Still feel the need to overspend on impulse purchases? The problem could go deeper than motivation or habits. Consider speaking with a counselor to see if impulse purchases are a result of an emotional issue. While it may cost more initially, it will save you money in the long run!
4. Not Planning For The Unplanned
5. Saving Aimlessly
Don't just set a budget, set goals!
Set A Tight Deadline!
6. Budgeting By Yourself
7. Setting Unrealistic Goals/Limits
When you set a savings goal, it needs to be realistic.
Factor In Some Lifestyle Changes
- Cook more at home instead of eating out.
- Only subscribe to one streaming service rather than three.
- Additionally, you can walk more instead of driving (if you live in a place where that is possible). Not only will you save money on gas, but you’ll spend less on repairs. And you will be healthier!
Ready To Conquer Your Budgeting Challenges?
No matter what, if you defeat these seven budgeting challenges, you’re sure to have greater success with your budget.
Once you’ve jumped these hurdles, keep the momentum going!
I strongly suggest completing a money makeover.
Alternatively, now that you’re saving money, divert your attention to making money.
How? Try one of our suggested side hustles or learn to invest.
Best wishes on your journey to financial independence!
