As you know, I’m a big proponent of creating a budget. But budgets can fail. Why? People find them restrictive. They think they’re a financial diet! UGH!! Who wants to never eat out, never have fun, never cheat! You can’t maintain your diet/budget long-term. I know I’d rebel if I was totally restricted.

Most budgets don’t account for real life. Emergencies, gifts, things for kids, trips to the vet, a blown tire, and lots other events can ruin your budget. And, when people think they’ve blown their diet/budget, they often quit. In my book, I teach creating a budget to account for these things.

People also hate tracking everything they put in their mouths, just like they hate keeping a food diary. If a system feels like too much work, it gets dumped. And for some people, they prefer being flexible over rigidity. There is no such thing as a one-size-fits-all budget. They all need to be tailored to the individual situation. Otherwise, people will think they’re doing it wrong.

People think that budgeting focuses on limiting, and have no purpose. A budget without a purpose is just a list of rules. But purpose gives discipline a reason. Think about this… Many think that a budget, just like a diet, is about cutting back, saying no, and tracking spending. That’s why most people don’t stick with budgets (or diets). It tells you what you can’t do, instead of recapping why you’re doing it.

When you have a why, a real, emotional reason, your financial choices finally make sense. You’re working to achieve your goal(s). As your savings balance increases, you can see progress. If you cut back, it seems deliberate. You stay with it even it it’s not fun because it’s steering you in the right direction. Purpose transforms sacrifice into strategy!

Moral of the story:

So, for creating a realistic budget that won’t fail, ask yourself what you want your future to look like. Decide what more you want in your life. Figure out why you feel tired financially. And finally, what would give you more peace? If the way you’re doing things isn’t working, change direction and do something else. Remember, purpose creates direction. Discipline creates results. Go create that budget!