4 Reasons Why Your Budget Failed

Do you budget? I use a budget on and off throughout the course of the year. But I can't say that I'm religious about using one. I primarily just track my spending using something like Mint.com. But once or twice a year I will turn to an actual budget to clamp down on spending.

Your Money - JD RothBudgeting for the long term is hard (for me at least). Many people start a budget and quit, thinking they've failed. But I say your budget only failed if it didn't help you move the meter a bit closer to meeting your financial goals. According to Your Money: The Missing Manual, a book by J.D. Roth, there are four reasons why budgets fail:

1. It Was Too Complicated

Your budget can be as detailed and as automated as you want it to be. If you want to focus on just a few spending categories, that's fine. If you want to just do it with pencil and paper, that's okay too. When I do a budget, I focus on just my dining out category. I know that's where I tend to overspend. And if I want to limit my spending for the month, that's where I should attack. Some people swear that a zero-based budget, like the budgeting software You Need a Budget provides, is a simplest way to go. Find what works for you and stick with it.

2. It Didn't Align with Your Goals

A good budget will help you achieve your goals. If your budget doesn't specifically reflect your end goals, then you are likely to miss the mark.

3. It Was Impossible to Achieve

Your budget needs to be based in reality. Make sure your budgeted categories aren't extremely different from your past spending. Otherwise, you'll just serve up a big dose of disappointment for yourself.

4. It Wasn't Fun

Finally, budget shouldn't be about only limiting your financial life. It should set you free and include a little fun. Make fun savings goals (i.e. vacation, holiday spending) a part of your budget. And be sure to include those splurge expenses too.

Do you have success with budgeting every month? What's your secret?

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Last Edited: July 25, 2017 @ 7:02 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, podcaster, FinCon Founder, husband, and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or Google+. Listen to the new podcast, Masters of Money!


  1. For me, the key was flexibility. I was trying to build a static one, not to mention this was before I even figured out how to deal with irregular expenses!