7 Reasons We Have Trouble Sticking to Our Budget

Reasons We Can't Stick to Our Budget

Every month, I diligently write out our budget and track how we spend our money. 

Most months we stay close to our target budget.  However, there are some months, especially the winter months when we have a number of expenses due at once, where we struggle to make ends meet.

I’m sure you’ve experienced this as well.

If you struggle with your budget, you’re not alone.  Turns out, there are many reasons why most of us spend more and save less than we should.

Here’s Why We Have So Much Trouble Sticking to Our Budget

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These Big Financial Wins Will Put a Lot of Money in Your Pocket!

these big financial wins put money in your pocket

A look around the personal finance blogosphere will show you a number of different approaches to living a financially rewarding life. 

Some bloggers like Ramit Sethi from I Will Teach You to Be Rich scoff at little cost cutting measures like making your coffee at home instead of stopping by Starbucks, arguing that the way to truly become wealthy comes from making more money, not cutting little corners.

Others like Crystal Paine at Money Saving Mom advocate a frugal lifestyle.

She regularly advertises free deals and ways to be frugal such as using coupons when shopping, menu planning, and taking advantage of free summer activities with kids.  While she does advocate having a side gig if you’re able, her main focus is saving money by spending less money.

Of course, these two strategies combined — earning more money and saving money in all the little ways you spend on a daily basis — are important to growing your net worth.

But there’s also another strategy that may be even more important than cutting corners on routine, small expenditures–cutting corners on large purchases that can save you thousands in one fell swoop.

Saving on large purchases isn’t discussed as much because there’s not an opportunity to save as frequently.  After all, you may go to the coffee shop every day, and you may go out to eat a few times a week, but you’ll likely only buy a new car every five to ten years.

Still, the big purchases can save you as much in one fell swoop as a year’s worth of savings by making your coffee at home.

These Big Financial Wins Rock!

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Lifestyle Inflation: The Silent Killer of Your Finances?

lifestyle inflation: the silent killer of your finances

Chances are, you want to make more money.

Most of us think that a higher income would improve matters in our financial lives.

But would more money really be useful to your long-term financial health?

It could potentially help — as long as you don’t let lifestyle inflation drain away your excess income.

The reality is that when most people earn more money, they spend more money.  If you aren’t careful, lifestyle inflation can destroy all of the benefits that come with a higher income.

You won’t get ahead if you don’t put that money to good use for your future.

What is Lifestyle Inflation?

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Grow Your Dough Throwdown Update – February End – It’s Growing!

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It’s awesome when you see your investments going up!

It’s the kind of feeling that makes you feel powerful; invincible even.

And when your investments go down you feel a pit of despair in your stomach.  “Please go back up some so I can sell and I’ll never invest like that again,” you plead to the investment deities.

Of course this is all good reason you should carefully invest.  It’s not hard to do but if you don’t have the stomach to see your investments fall in value then you’re better off investing in broad sectors (like the S&P 500 or all stocks).  Honestly, most people aren’t that great at picking stocks so your best long-term plan is to stick to sector funds and ETFs.  And even then you might not want to look at your picks too often.

About a month and a half ago I jumped into the Grow Your Dough investment challenge.

This challenge pits a growing number of personal finance writers against each other for a year to invest $1,000 and see whose investments would come out on top.

I chose to pick individual stocks.

If you take a look at the other people in the competition you’ll see a number of different investing strategies.  It’s pretty cool to see how everyone interpreted the challenge.
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Quicken 2014 Deluxe for Windows Giveaway

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Not long ago we told you about the awesomeness that is Quicken Deluxe.

It’s a great bit of software that helps you track your money and create budgets (among other things).  If you’re looking to better understand your money then Quicken is one of the programs you need to check out.

Why am I telling you this?

I was given a promo code for a free copy of Quicken Deluxe 2014 to give to one of my excellent readers!  That could be you! Continue Reading

These 6 Behavioral Finance Mistakes May Be Ruining Your Finances!

behavioral_finance

Behavioral finance is the study of how our behaviors affect our finances.

In many ways, the way that we see the world, and our reactions to what is happening around us, define our finances.

We might not even realize how our biases affect our finances.

The first step to overcoming biases in your life, especially if they are psychological, is to acknowledge them.  You need to be aware of what is holding you back.

Once you recognize the reasons for your difficulties, it will be easier to address them — and to come out ahead with your finances.

Here are 6 behavioral finance mistakes that might be holding you back:

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Not Every Baby Is Born Into Royalty But Yours Can Still Prosper

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Prince George, or Georgie, as he will be called, was born in July to much fanfare and anticipation. 

What does it mean to be born into the House of Windsor?   Even though he likely won’t exert his political power when he becomes king, he will still be influential.

And he will be worth a pretty penny. 

According to International Business Times, he will inherit 700 million pounds.  There’s no doubt little Prince George is already one of the wealthiest babies in the world.

Of course, not every baby is born into royalty, with the proverbial silver spoon.  Chances are, you probably wouldn’t want that life for your child anyway.

While you may be from modest means, you CAN help your child get a financial advantage over many of his peers by taking important steps when he or she is young.

7 Ways to Set Your Child Up Like Royalty

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