If in a previous article I have talked about the 10 reasons you should use a personal budget, now we are talking about the reasons a personal budget fails to reach its purpose.

You know very well that a budget helps you plan from a financial perspective any activity you have and it gives you an objective image on your personal finances.

Most of the times, after we start using a personal budget, we end up failing to take it into consideration and it stops coinciding with the financial activities we make.

I have to tell you ever since the beginning that it is not easy to make a personal budget. The most difficult part is to stick to the plan.

Personal budget is a plan you make at the beginning of the month and you have to comply with it without any deviation. Most of the times, we see at the end of the month that we have failed to take it into consideration and that we have spent more.


Before analyzing your own personal budget, let’s see what the main reasons for its failure are:

5 reasons why a personal budget fails

1. You have very high expectations!

Each time someone makes a personal budget, he/she has high expectations from it. It takes a while until you achieve your own personal budget.

At the beginning, as you are not used to it, you will see that the planned budget does not coincide with the achieved one and differences between them occur.

Do not get scared and do not lose motivation. It is normal!

A good budget is not created over night, or in the second night.

You end up having a budget after at least 6 months. After 6 months, while you were focusing a lot on your expenses and your income, and made a habit out of it, you can say that your budget is good.

Until then, take your time, do not lose motivation and give yourself as much time as necessary to plan your budget each month.

2. Personal budget is not at hand!

We are human. Humans generally forget. We are forgetting small things happening to us daily.

This can be a problem when it comes to organizing a personal budget.

If you are a forgetful person, I recommend updating your personal budget daily.

Give yourself 5-10 minutes each evening and update your budget. See what you have spent that day and how much money for spending you have left for the next days.

3. Maybe you are not using a budget model which is in your advantage

There are many budget models you can use. Some of them are online, some even directly on your phone, others in Excel.

I, for one, use a budget model in Excel, which I update each time I go to the computer. I am spending quite a lot of time at the computer and it helps me be in contact with it.

HERE you can find the budget model I use. It is in Excel and easy to use.

I recommend it with the utmost trust.

4. You are forgetting about the expenses for fun!

When we are planning our budget we are tempted to write absolutely all expenses for invoices, food, but we are forgetting the expenses for fun.

We are thinking that we will not have that much fun in that month and we write a small amount.

The reality is completely different. In reality, you go out each week (sometimes daily) and you are spending more than you have set.

It is crazy if you do not plan the expenses with fun. It is a very important category where the amounts can be very high if you are a “party person”.

5. You forget about the “Unexpected or extraordinary expenses” category

You have many expenses in a month. Many invoices, much shopping to do, you have many places to go to.

Once with these “many”, you will end up finding it very difficult to foresee them. Then, there are the extraordinary expenses, which you had no way to foresee, such as: something in your car breaks, the TV/phone/computer etc. breaks.

All these are expenses that can affect your budget.

Best solution: Add 10% of the total amount in the “Unexpected or extraordinary expenses” category.

This category will help you get off a lot of trouble without affecting your financial planning.

These are the most important 5 reasons why a personal budget fails. Make sure you are not breaking them and always take into consideration the 10 reasons you should use a personal budget.

In the end, I am waiting your opinion about why a personal budget fails.

Why do you think people cannot comply with their personal budget?