Why Budgets Don't Work and How to Fix It By Terry RiggThis article is for those families that have sat down at a desk or
kitchen table time after time trying to develop a family budget that they can live with.
Why don't they work?
There are several answers to that question. Most budgets are doomed from day one because they are too complicated, don't have commitment of all involved or numbers simply don't add up. The biggest culprit is that most people don't allow for unexpected expenses.
Let's tackle these one at a time:
Too Complicated: When you list every expense you have on your budget you set yourself up for defeat. Some budgets include such things as cleaning supplies, dog food, haircuts and car gas. In order to keep track of all of these you would need a new box of envelopes every month.
Answer: Streamline your budget. By simply including a topic on your budget entitled "Household" where you can include everything you spend money on each month, excluding bills. Groceries will undoubtedly be largest expense in this category. By taking extra time to figure what needs to go into your household budget when you set it up, you can save a lot of time each payday.
Commitment:
1. Many times commitment to live by a budget is lacking. 2. People get into spending habits that are hard to break. 3. There is constant friction in family over money. 4. It is more comfortable to live beyond your means.
Answer: You have to consider all of above problems when setting up your budget. The Family Budget is just that, FAMILY BUDGET. Everyone in family that is old enough to count should be included. I don't mean to say that children should have a say in where money goes, but they should be aware of what spending limits of family are. If you work closely with your spouse in developing a family budget you both are more likely to stick to it. There is one other detail that will help. By setting aside money for yourself and your spouse, that you don't have to account to other for, your budget is more likely to succeed.
