Why Most People Fail at Budgeting and How You Can Succeed
- Jade Eagles
- Apr 22
- 3 min read
This week, I’m back in Yosemite — this time to talk about some of the most common budgeting mistakes that trip people up. Don’t worry though, I’ve got you covered. While I’m cooking up a beef breakfast scramble in the great outdoors, let’s walk through how you can avoid these budgeting pitfalls and start building a plan that actually works.
When it comes to budgeting, the first step is understanding why it matters. Without a plan, it’s hard to know if you’re spending too much, living beyond your means, or missing chances to save for goals that matter. Budgeting might feel overwhelming, but it becomes much easier when you break your money into simple, manageable categories.
Category One: Recurring Expenses
Recurring expenses are the predictable, fixed costs that show up every month. These include rent or mortgage payments, car insurance, loans, and fixed-rate subscriptions. Since they don’t change much, they’re the easiest to plan around and form the foundation of your budget.
Category Two: Variable Expenses
Variable expenses are necessary but change month to month. This includes groceries, gas, and utility bills. Because these costs shift, they can throw off your budget if you’re not paying attention. Keeping an average of these expenses helps create a more stable plan.
Category Three: “Wants”
This category covers spending that adds to your quality of life but isn’t essential. Things like streaming subscriptions, meals out, hobbies, gym memberships — or in my case, anything involving adventure — fall here. It’s also the easiest category to adjust if you need to cut back or redirect your money toward savings.
Category Four: “One-Off” Expenses
These are the expenses that can sneak up on you. While they may feel random, they happen more often than you’d expect. Things like car repairs, replacing a broken appliance, or surprise medical bills are common examples. If you review last year’s spending and set aside a small amount each month, you can build a cushion to help absorb these hits.
Category Five: Savings
Savings isn’t just for retirement accounts. It includes anything you’re setting money aside for on purpose. That might be a home down payment, an emergency fund, or a future vacation. The key is to treat savings like a monthly expense, not just something you do with what’s left.
Category Six: Discretionary Fun Money
Whatever money remains after covering the other categories becomes your fun money. This is what you use for small luxuries, date nights, or spontaneous purchases. If this category is always running dry, it could be a sign that you’re overspending elsewhere or need to bring in more income.
The Credit Card Trap
One of the biggest budgeting mistakes people make is relying too much on credit cards — especially for daily purchases. The delayed billing cycle makes it easy to overspend because the impact isn’t immediate.
If this is something you struggle with, consider using your credit card only for fixed expenses. For everything else, try switching to a debit card or cash. This makes you more aware of your spending in real time.
At the end of the day, successful budgeting requires accountability – whether to yourself, a partner, or a financial advisor.
A budget is only as good as your commitment to it. That means holding yourself accountable, whether it’s through regular check-ins, help from a partner, or guidance from a financial advisor.
Budgeting isn’t about restriction. Instead, it’s about being intentional with your financial decisions. It helps you stay aligned with your values and make progress toward the life you want. Sometimes it requires patience, but the satisfaction of reaching your goals is always worth it.
If you’ve got questions or want to talk about your financial plan, reach out anytime at thewealthgardenfs.com. And if you enjoy these cooking + finance mash-ups, subscribe so you don’t miss the next one.
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