I recently came across this post. And while I am not sure when it was written, I still deemed it important to post. While the content was created for budgeting for personal finances, every single point is relevant to business finance budgeting as well. Every point was so dead on that I couldn’t have said them better myself. So check it out and let me know what you think!
Using a budget to manage your money is key to paying off your debt. But, sometimes your budget may not work. The numbers may not match up and somehow you always manage to spend more than you budgeted for. Here’s a secret: many problems with budgeting aren’t about the actual budget at all. Here are some of the common reasons budgets don’t work and how you can get your budget on track.
1. You haven’t given it enough time.
2. Your expenses are higher than your income.
If your net income (income minus expenses) is a negative number, then you’re spending more money than you make. The problem isn’t the budget, it’s your spending. Review each spending category and figure out which ones you can cut back on.
This can be a difficult exercise, especially if you’re overspending in areas that make you feel comfortable. But learning to live within your means will put you in a much better financial position.
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