I have listened to people, they starta budget, but can not succeed. Often people comment that they get depressed and it causes more stress. Why is this?
People do not succeed because of their impulse. It is very important to control yourself when you are in a budget and for many people that is a huge challenge. They get tempted to buy things that is not very necessary and at the end they realize they do not have enough savings for other items. So I think if people want to save money, they need to control temptations and think about savings.
If you don't have credit there is automatic self-enforcement. Then it becomes what goes where. One must correspond one's desires to what is prudent.
The incredible shrinking plan.
I think that is a great question. I think many people bite off more than they can chew, and realize they may not be able to commit to their change.
I firmly believe that that before you create a budget, and start taking steps to save money or reduce spending, you have to make the decision and change personally. You need to understand and be realistic about what your goals are, what the purpose of the budget is, and once that is determined, your mindset needs to change in order to successfully implement it.
Another aspect, which i like to compare to dieting or working out, is that it has to be a lifestyle change. crash diets rarely work because we either revert back to old habits, or we cannot sustain the lifestyle. You need to make changes that are realistic, attainable, and are measurable.
Anyone can create a budget, and total up how much they spend, that's the easy part! the hard part is implementation, and sustainability.
Hope this helps, i have a deep passion for finance, and all my hub pages are related to personal finance. Some of them may be able to shed some more light on this great topic.
While it may be difficult to start a business without incurring some debt, you’ll want to reduce the debt as quickly as possible. Debt costs the business more in interest repayments, so having a budget that has the business operating in the black sooner is always a good idea. If you do take out a debt for your business, ensure you will be able to make the repayments every month.
Budgeting for some people is more difficult than it is for others...some people just can't stop spending and can't live within their means. You have to stop spenind what you don't have. The first thing you do is make up a budget.
To make a budget first you need to gather all your bills together, then add up all your income for a month. Take the most important bills first re: house payment or rent, utilities, car and insurance...make sure you can pay those...subtract them from your monthly earnings...groceries are the next thing you should take out of your monthy budget...then if there's any left pay them also...if there is nothing left, you need to call the companies and try to get your payments decreased...companies will work with you if you are upfront with them.
Depression because of inability to budget and stay within their means as far as spending can cause stress and anxiety...the more stress in your life, the increase risk you are for becoming depressed.
It is always possible to decrease bills and stay on a budget...My husband and I have been doing it for years now on a fixed budget, but we don't have a million dollar house or a fancy car and I use coupons for grocery shopping. We even save money every month, although not a lot.
Better stop now, this is becoming an article...lol
There are a variety of reasons. Some people work and just don't make enough to make ends meet. Others are spendthrifts, spend all of their money from today without providing for their tomorrows. You will find some who give too much to others without even thinking of themselves. Sometimes there are financial blows to which most working people just don't have enough of an emergency fund.
Making a budget and sticking to it is just like losing weight, it requires a life-style change, realistic goals, and accepting that it's ok if you splurge every once in a while.
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