3 Reasons Christian Millennials Are Struggling With Budgeting.

Estimated reading time: 9 minutes

Are you struggling with budgeting as a Christian millennial? These 5 reasons could be the problem. A while ago, we talked about budgeting and I wanted to follow up with the reasons you are struggling with budgeting to help you avoid some pitfalls other people make. A 2020 Intuit Survey of at least 1,500 people found that over 60% didn’t know how much money they spent the previous month. If you’ve tried making a budget and you’re struggling to stick with it, it might not be entirely your fault and this is why.

Why Christian Millennials are struggling with budgeting
How to stop struggling with budgeting as a Christian millennial.
- Conclusion.

Why Christian Millennials are struggling with budgeting

Your budget is unrealistic.

The reality is that just like a diet a budget cannot be one size fits all. After all, we are different and have different obligations. And not factoring in some expenses or allocating less money to some categories could be a problem. And examples of these include;

Not allocating funds for fun. If you are a social bug, you cannot fail to accommodate your fun adventures. If you don’t, you will end up spending and going against your budget. This will then leave you feeling bad and not wanting to stick to it. You see, the problem with having an unrealistic budget is that you will mess up at some point. Now what you can do in such a case is to allocate a section for fun. An introvert might be okay with just two days a month of hanging out with friends. But as an extrovert, if you set the same amount for hangouts as an extrovert it might not work for you. Of course, you will need to have balance. After all, you are trying to create financial wealth. However, ensure that you find a number that works for you. 4 could be a better number for you. Either way, when setting your budget, you need to factor in your personality as well. Don’t forget that.

Allocating fewer funds in some categories. When you find you are spending more in some categories month after month, it might be time for you to allocate more funds to the said category. Remember this, a budget is not set in stone and can change from time to time. Therefore, if you want to stick to your budget, you need to adjust the budget as you see fit to accommodate the said categories. An example would be if you are working on setting up your emergency fund. You might need to allocate more money to your savings and cut back on your wants (the 50/30/20 rule. Check out my blog post on a complete guide on budgeting to learn more). After you have worked on your emergency fund, you might then adjust it back to normal. Another example would be if you have a financial goal, factor it into your budget. Otherwise, it beats the purpose of having one.

Expecting each month to be the same. Some months you will spend more and other months you will spend less. The key is to save on the months you spend less and use what you saved in the months you spend more. Sometimes you have unexpected expenses that don’t need you to get into the emergency fund. In such months you might find that your savings might suffer. And that’s okay. A budget is meant to give you structure, not to constrict you. Anything that is constrictive is unsustainable. Again, it is important to recognize when you have gone overboard for a good cause and when it is not. Adjusting as you go along is key. There are seasons that will be different. When you start dating, whether male or female, you will spend more than you did when you are single. When you make friends, you will also spend more than you did when you had no friends. Again, adjusting your budget based on the season you are in is the answer.

Overstating your income and understating your expenses could be the reason you struggle with budgeting. When you overstate your income you are only hurting yourself. When it comes to your income understating is always better. That is one rule of forecasting if you want to budget. And with your expenses, it is best to give a higher figure. This will help cushion you, especially in months when there is inflation or recession and there is an increase in the prices of goods. You will not always be accurate. However, the closer you are to the estimate, the better. Remember, honesty is the best policy.

You have not given your budget time

Just like a diet or a workout plan, you cannot expect to see the benefits of a budget immediately. You should give it a chance. Stick to it and see how you fare with it after 90 days or so. Who knows, you might actually end up liking it.

After all, who wouldn’t want to be aware of their financial position and their spending habits? Who wouldn’t want to see themselves achieving their financial goals? Everything needs time before it can bear fruit. You cannot expect to plant a seed today and expect to harvest tomatoes tomorrow. Even the veggies that take the shortest amount of time still take time to germinate and grow before you can harvest them. According to quizlet, it takes around 3 months before your budget can start working.

You can combat this by exercising patience. Another thing is to reassess your budget to ensure that it is unique to you. Again, the concept of one size fits all for budgeting is false. Find a budget that works for you. Adjust until you find that sweet spot. And review regularly, quarterly, or semi-annually to ensure that it still works for you. Remember that a budget is a lifestyle and something that you want to incorporate for the rest of your life to ensure financial freedom. So don’t forget to tweak it when you see fit or when the need arises.

To ensure that you stick to the budget, be disciplined. It is okay for you to have an accountability partner who will help you stay on track. An accountability partner can be a financial advisor, financial coach, friend, family member, or spouse. A professional would be better. But if you cannot afford one, then you can go with a friend or family member. The goal, however, is to ensure that you have one that is disciplined too. Being disciplined is not always easy. However, it is imperative, especially if your goal is to achieve financial freedom.

Budgeting when you have inconsistent income could be the reason you are struggling with budgeting.

When you have inconsistent income, it’s difficult to budget. After all, you cannot really forecast how the month would be. In such a situation, however, the goal is to ensure that you save more in months when you have a windfall. So that in the months when the income is less, you can have something to cushion you. If you have a seasonal job, for example, maximize on the high earning months. Maybe consider working more hours in those months? If not, find ways you can supplement your income during those low-income months. The other thing would be to lower your expenses and ensure that your baseline income covers the monthly expenses. This will help you avoid debt.

How to stop struggling with budgeting as a Christian millennial.

Identify your why. Every time you want to conquer a present struggle, it is best to connect with your why. Ask yourself why you want to have a budget and maintain it in the first place. Could it be that you want to achieve financial freedom? Maybe it is because you want to save up for retirement or you want to leave an inheritance for your grandchildren. Or maybe you want to change the legacy of your generation. Whatever the case may be, find a reason that is bigger than you. This will always center on you when you are tempted to give up on having a budget. Connect your present self with your future self. After all, you know that every sacrifice you make now will always be worth it. And being able to achieve financial freedom will lead to you having a great future.

Break big goals into bite-size, actionable steps. You will not achieve a budget that is not clear. And to have a clear budget, it is best to break the big goals into smaller ones. So let’s say the goal is to plan for your retirement. How much money do you need to save up every month? And what expenses will you cut back on? How will you still factor in your social life in the process? Find a budget that is very realistic for you and work with that. Don’t plan for the money you don’t have. Don’t tell yourself you will not save because you have a low income. Work with what you have. Find a fund that has a higher yield and low risk. Remember, you don’t want to risk your retirement money on quick cash. Whatever the goal is, always factor it into your budget, that way you will avoid overspending and having a budget that is unrealistic. It is also easy to keep going when you see it working and that is why setting small goals is great. Once you see yourself achieve one, it will motivate you to set and achieve another.

Find an accountability partner. Having someone to keep you on track and also motivate you is another great thing to do. You can choose to make it a challenge with your friends. This way, you will all encourage each other to keep going. The Bible reminds us that two are better than one. You could consider having a financial coach to help you stick to your budget. Not only will they hold you accountable, but they will also help you create a budget that is specific to you. Also remember this, while having an accountability partner is great, self-discipline is key. Exercising delayed gratification will help you in the long run. Patience when waiting for the budget to work is also key.

Extend grace to yourself. You should not expect perfection. There will be moments when you will mess up and that’s okay. You are human, and that means you will mess up from time to time. You should, however, not throw the baby with the dirty water because you failed. Give yourself time to adjust to this new life. You will get it right if you keep going. And also don’t focus on your past mistakes. The Bible reminds us to forget the former things and focus on what’s ahead. Even if you fall 7 times, get up 8 times. It is okay. Give yourself room and try again.

Conclusion.

You should avoid feeling guilty because you are struggling with budgeting. First of all, it is common, especially if this is something you are just starting off with. Remember that your budget can be adjusted and sometimes the reason you are struggling is that the budget is rigid. Set your budget based on your income, goals, and lifestyle. And remember that the goal is to make it a lifestyle and not a one-time thing. Last, remember that you can achieve anything you put your mind to. The goal is to believe that you can and you will. Always remember your financial goals, and this will help you push past the initial discomfort of having a structure with your income.