Why does it seem, the more I budget, the less I have at the end of the month?

Answer 1

Creating the budget is only the first step.

The second step is to meaningfully track where you spend your money and then compare that to your budget.

Spend $.99 for a notebook and write down everything you buy (with cash, check, credit card, whatever). Do this for a month and then total up the various categories (ie., groceries, eating out, gas, rent, utilities, clothes, entertainment, etc.). Don't create a misc. category.

Then compare your actual to budget and you'll see why you don't have any money at the end of the month and where you can make changes. My guess is that you'll be amazed at how much you spend on food and "misc."

Answer 2

If you have less at the end of the month then it only means you have done a good job budgeting. Everything has been spent within your budget so there is little left over. You might consider upping your savings in the amount that is left over, even if it is only a small amount. Keep up the good work!

Answer 3

The simple answer is that your budget is broken. Before a month starts, you need to spend on paper every single penny you will make. When you are done, you should have income of xxx.xx and expenses of xxx.xx. The key is that your budget should have line items for every expense. If you forget to put gasoline as a line item, chances are your budget won't work. Savings is included as a line item on the budget. Put a line for money that you will blow since we all do it. For example, you might put $25 in the blow category for snacks and any other miscellaneous item you might purchase throughout the month.

Savings is very important. Determine how much you are going to put in savings each month and put it in your budget. That will be what you probably consider your money left at the end of the month. By putting this in your budget, you can determine how much money to save before the month even begins.

The first couple of months of a new budget are difficult. Starting with the 3rd month, it should begin to get easier. So, stick with it and it will pay off in the long run.

One other thing - DISCIPLINE is the key of budgeting. You can't spend more than you have budgeted unless you lower another category to match the increase in another category. Since there is probably no one watching to make sure you stay within your budget, you will have to discipline yourself to not overspend.

Answer 4

With the success of the budget program, you probably allow yourself a little extra something, figuring that the budget will take care of it. Part of any budget is the savings part. Get a savings account at your institution with the instructions that the savings will not be used for any purpose except at your discretion at a designated time. That way, instead of a congratulatory spree each month, you can celebrate closing an account at the end of the year with money to spare.

Answer 5

The reason is simple. You are living within your means when you budget!!! The more money you set aside the more you realize how close to broke you may be. I have been living week to week for 20 years. If I stopped to budget I would be so depressed I would lose it.... Hope this helps.

Answer 6

The big lie is that budgeting as a avenue of success is even a reality. You can budget in your head. You need to stop wasting money and/or make more.

Answer 7

Something is breaking the budget. Is your mortgage/rent more than 1/3 your take home pay? If yes, sell it and/or move to a cheaper place. Do you have a ridiculous car payment? If yes, sell it and get a cheaper car. Is it credit card debt? Sell everything that you don't need to exist and pay it off.

Answer 8

something is wrong here -- if you budget xx dollars and stay within that amount you have to either have money left over or break even == are you really budgeting and tracking cost back to the correct item in the budget??!!!

Answer 9

your probably budgeting, but since you need less to survive now that you are budgeting, you are making just enough to fit your budget, not what you where making before the budget?

Answer 10

I think if you budget you focus on what you have left to spend all the time. If you don't budget you secretly are worried that you will be short of cash so you end up underspending