Why Most Budgets Fail (and How to Make Yours Stick)

Let's face it -- most people fail at creating and sticking to a budget. But it's not because they're lazy or bad with money. It's because their budget isn't realistic.

Here's what typically goes wrong:

• They do not track their spending

• They leave out variable expenses

• They make their budget too strict

Here's how to make a budget that actually works:

Budget Calculator

1. Start by Tracking Your Spending

   Before you can plan, you need to know where your money is going. For one month, track every dollar—groceries, subscriptions, gas, eating out, etc. You can use a notes app or our Budget Calculator for help.

   
   

2. Use a Simple Framework

   Once you've got your numbers for fixed costs, you can build your budget using a simple framework like:

   • XX% Needs/Fixed costs (rent, food, insurance)

   • XX% Savings/Investments

   • XX% Wants (fun, entertainment, subscriptions)

3. Automate What You Can

   Set up automatic transfers and auto-payments for bills that do not change. The fewer decisions you have to make consciously, the easier it is to stick to your budget.