Why Most Budgets Fail
Market Meditations | March 9, 2021
Having a budget and sticking to it is an essential part of your financial health. It dictates how much money you spend on living expenses ? and how much is left over for investing and building up your trading portfolio.?However, most budgets fail. Meaning those funds don’t find their way into your preferred trading platform.
This is because people:
- Don’t understand their spending habits.? Look over your historic bank transactions. See what you actually are spending money on and budget accordingly.
- Don’t have clear goals. Take the time to formulate your financial goals.Deliberately budget to achieve these and it will be psychologically easier to maintain.
- Manually enact their budget. Automate your processes?so that funds are automatically placed in the correct place. Whether this be your saving account or investment platform.
- Are not realistic. Having unrealistic expectations will only lead to disappointment and abandonment of your budget.
- Do not keep it up to date.? Our spending habits and our incomes are constantly shifting. Make sure that your budget reflects your current position in life.