123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

4 Reasons Why Budgeting Is Not Working For You

Profile Picture
By Author: John Cox
Total Articles: 11
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

One of the unsurpassable tools for effectively running a business and managing finances is budgeting. It gives business owners the most descriptive picture of where to allocate their money and where they should not. Although a vast majority refrains itself from budgeting, owing solely to the misconception that it is an effort in vain, budgeting is and should be done by every individual and entrepreneur who is looking for success in business.

If you built a budget, religiously followed it, and still found yourself failing at your finances, it is time for you to troubleshoot. Discussed below are 4 primary reasons why you are failing at budgeting and how you can find a fix to your financial troubles:

You Roughly Estimate Your Expenses
The biggest budgeting mistake you are probably making is not estimating your expenses accurately. Verbally calculating your monthly expenses is not going to give you a dramatic insight into all the categories your money is going into. Instead, your budget should give you a clear picture of how much you are spending each month, which expenses can be postponed, and if there is any ...
... wasteful expenditure you need to watch out for. If you are an entrepreneur, a smart budgeting software solution such as QuickBooks Enterprise hosting can help you budget you effectively manage your business budget.
There Is No Room For Savings
A lot of individuals and business owners often forget the primary purpose of budgeting, i.e savings. If you are okay with spending your entire income every single month, you may not even have to consider savings as an option. But, if you are particularly focussed on devoting a part of your income into your retirement or emergency fund, your budget should promote saving and keep you from unimportant expenditure. If you are struggling but cannot afford to seek professional help, Quickbooks hosting is an efficient solution to budget your expenses.
You Did Not Consider Inflation While Preparing Your Budget
You may not realize it, but inflation cuts down your real income almost every month. If your actual income is stagnant, even the slightest percentage of increase in inflation is going to leave you with a smaller spendable income. While preparing your budget, leave some room for inflation as well. A jam-packed budget that fails to accommodate even the smallest increase in prices is going to throw your financial planning downhill.
You Forgot Your ‘Once In Twelve Months’ Expenses
Now, that’s a huge red flag. Well-planned monthly expenses are one thing, but there are some expenses you only incur once annually. For instance, your car insurance or a license renewal does not happen every month, but rather show up once every year. Not allocating a part of your income to these ‘once a year’ expenses can give your budget a shock when the expense suddenly pops-up. If you didn’t save for it, chances are you are making the payments out of your retirement or emergency funds. On the contrary, you can divide the total fee into twelve parts and save for it every month to avoid battering your monthly budget.

And Finally
Budgeting alone is not enough. Doing it correctly is equally important. Always remember your purpose behind budgeting and if it is being met. It must give you clarity of where your money is going and ensure that you are not spending more than you earn. And, if you find yourself failing at budgeting, the above mentioned tips are for you.

I am John Cox, a professional technical writer with specialization in cloud technology for SageNext InfoTech. I have panoptic experience in writing about QuickBooks Enterprise hosting, QuickBooks Hosting, and ProSeries Cloud Hosting.

More About the Author

I am John Cox, a professional technical writer with specialization in cloud technology for SageNext InfoTech.

Total Views: 341Word Count: 606See All articles From Author

Add Comment

Business Articles

1. Lucintel Forecasts The Canadian Residential Humidifier Market To Reach $234 Million By 2030
Author: Lucintel LLC

2. Boost Your Property’s Value With High-quality Driveway Installations
Author: Vikram kumar

3. Eco-friendly Expertise: Leed Consultancy In Dubai And Uae
Author: kohan

4. Best Travel Websites
Author: RishiHassan

5. Top 5 Essential Dog Training Equipment For Active Dogs: Harnesses, Crates & More
Author: Von Ultimate Dog Shop

6. Mindpath Technology Limited – Transforming Businesses With Innovative It Solutions
Author: Mindpath

7. What Are The Costs Of Charging At Public Stations Vs. Home Chargers?
Author: -

8. When To Diy And When To Call The Professionals
Author: Maria Marshall

9. Uniquemark Solutions: Your Trusted Digital Partner In Pune
Author: Uniquemarks

10. The Ultimate Guide To Optimizing Your Website For Conversions
Author: Peggy Police

11. The Advantages Of Using Walnut Shells In Media Blasting For Industrial Applications
Author: Kramer

12. How To Make Iso 35001 Documentation For Biorisk Management System
Author: Emma

13. How To Make Your Product Photography Stand Out
Author: Sam

14. Experienced House Removalists Brisbane | Quality Packing & Moving Services
Author: Sarahwilliams

15. Best Astrologer In Kacharakanahalli
Author: Astroservice7

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: