You have a budget, but yet you still contemplate bankruptcy to dig yourself out of a particularly deep financial hole. While bankruptcy can serve your needs, determine what led you to file in the first place, so you do not start the cycle all over again.
Discover breaks down several mishaps that bungle a budget. See if any resonate with you, and take action on remedying your oversights.
When noting monthly spending on your budget, drop the lies. Be honest not only about the amount you spend but also on what you spend it on and how often you spend. You do yourself a disservice when you under-budget because you have less money to work with. If necessary, use apps to help you get the full (and honest) picture of how much outgoing money you have every month.
Lacking in motivation
Do you budget because you have specific financial goals, or because you think you should have a budget? By having clear and realistic goals, you make it easier to stick to a budget. Decide if you want to get out of debt, save up for a condo, or avoid the anxiety and depression that can come with poor financial health. Keep that goal in mind every time you look at your budget, and every time you think about spending money.
Failing to account for all expenses
While you may be honest about what you spend, there could be expenses you overlook. For instance, you may not account for a yearly credit card fee, or you could have an expense that is so small you do not think it is important enough to include on your budget. Besides everyday expenses, factor in once- or twice-a-year expenses, too.
Do not underestimate the importance of a proper budget for your financial health. It can help you just as much as it may hinder you.