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Financial experts agree that one of the easiest ways to cut spending is to give up your daily lattes. What if this one piece of advice held back many people who would like to begin a budget, but remain reluctant to give up life’s little luxuries?
The word “budget” often produces a shudder. There are many reasons why a budget won’t work. Here are 9 reasons along with ways to overcome them.
1. The Gung-Ho Backfire - You set up a strict budget and then wonder why you can’t stick to it. By trying to cut spending too much, you create an unsustainable budget that is sure to buckle under pressure.
2. Greener Grass - If you have trouble resisting temptation, cut it out by changing your habits. Stop window shopping at the Mall. Stop reading the enticing ads of all the sales you are missing. Avoid online shopping sites if they are your weakness.
3. The Ostrich Syndrome - If your budget is too vague, you are just burying your head in the sand. Instead, use realistic figures by keeping a spending journal.
4. What Does It Matter, Anyway? - Examine your motives before committing to a budget. Do you want to get out of debt? Instead of focusing on the negative and feeling overwhelmed, envision what your life will be like when the debt is paid off. You’ll be able to afford that dream vacation, or put money down on a house. Concentrate on the reward to make the budget easier to achieve.
5. Deprivation Dilemma - You decide to cut out all entertainment. After a month or two goes by, pinching every penny suddenly becomes unbearable. You go on a crazy spending spree. Instead, look for cheaper alternatives like movie matinees, a free concert, a lecture by a renowned speaker, or just a simple picnic by the river.
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