Avoid the Number 1 Pitfall that Stops New Budgets in Their Tracks
THE GRANDMA’S JARS BUDGET SHORTFALL WORKSHEET
Often, people new to budgeting will experience a shortfall in the first month when they suddenly realize that they do not have enough money set aside for their monthly bills. This worksheet assists in setting up budgets and taking this shortfall into account, so your budget does not fail in the first month.
Budget shortfalls undermine people’s confidence in their budgeting system. It is one of the major reasons people give up.
The budget shortfall happens when upcoming payments are not covered by your budget. This tends to happen only in the first month or two when someone starts budgeting. It is important to start budgeting correctly to account for all your upcoming payments.
For example, setting aside 1/12th of each expense works brilliantly if all expenses are due in 12 months’ time but what happens if the car registration is due in 6 months’ time?
The budget definitely won’t have enough set aside to cover the bill. Only half of the amount will have been put aside.
Many people get discouraged or believe that budgeting does not work because they fail to correctly account for their upcoming payments when they begin. With our worksheet, you will not have these problems.
If you are ready to start budgeting and taking control of your finances, then you absolutely NEED to calculate the budget shortfall to make sure that your budget starts on the right foot. Without calculating the budget shortfall, there is a high chance that your new budget will not be able to account for all of your future expenses.