5 Common Problems & Solutions When Sticking to a Budget

July 22, 20215 min read
Person in blue shirt sitting at desk with notebook, laptop and phone

Let’s take an in-depth look at major setbacks people struggle with when budgeting. Many of these stem from fears and emotional roadblocks that can be difficult to overcome.

Problem #1: You get overwhelmed and don’t start.

For some, starting is the toughest part. There are dozens of budgeting tools to choose from, and figuring out which one you “should” use can leave you in a state of analysis paralysis.

Solution: Try options without committing.

You can read reviews and comparisons of budgeting tools, but the best way to start is to simply try it out and create a budget. Many apps offer free trials you can use to get a feel for the platform. And don’t feel like you need to fill everything in during the test run. Start with one or two categories to get a feel for the new system.

You also don’t necessarily need to use an app. After all, the “best” budgeting tool is the one you’re going to stick with. Some people create an envelope system and only use cash or their debit card because that’s what works for them. However, you can connect budgeting apps to bank accounts and credit cards to sync your information, and many people find apps make it easier to organize and analyze their budget.

Problem #2: Facing your finances can be scary.

Creating a monthly budget means coming face-to-face with your financial situation whether you have high average monthly car payments. Listing out your income and expenses can be fun when you’ve got all the money in the world. But it’s much more difficult when you are afraid to look at how much debt you have, struggling to get by, or when your income is irregular. This is especially true if you’re ashamed of your debt.

Also, learning how to stick to a budget can be synonymous with limitations. You may prefer to spend money freely rather than being constrained by a set monthly or weekly budget.

Solution: Focus on your goals.

Rather than focusing on what might be troubling about your finances, list the goals you want to use your money to achieve; like being debt-free or grow your savings account. Perhaps you’re saving for a home, building an emergency fund, saving money for the holidays or paying down student and personal loans. Prioritize the goal, and keep it in mind as you get real about your finances.

Also, reframe the idea of a budget as a spending plan. Rather than keeping you from spending money, a budget asks you to be realistic about how much income you have and your necessary expenses. Then, you create a plan for what’s left based on your goals and what makes you happy from investing for retirement or finally invest in some of the best roi home improvements with great ROI.

If you need a helping hand, you could also sign up for a free debt and budgeting session with a nonprofit credit counselor. The certified counselor can review your finances, help you create a budget, and offer advice on how to manage debt.

Problem #3: Unrealistic budgets lead to giving up.

Figuring out how to set a budget and stick to it can be tricky, and people often stop after a few weeks or months. However, as with getting started, the tools aren’t necessarily the core issue.

A financial health survey from LendingClub and Harris Poll found that 73% of people say they have enough time to learn about finances, and only 36% think budgeting is too much work.

One problem is that many people start by creating the budget they wish they could follow. But then, they give up after unexpected expenses throw off their budget or they realize the budgeting system is too complicated.

Solution: At first, focus on tracking and be flexible with your budget.

Rather than creating a budget, you might want to track your usual spending for a month or two to give yourself a good baseline. From there, you can review the results to see if your spending aligns with your goals. Then, realistically create and refine your budget based on these results.

For example, dining tends to be a variable expense and a source of surprise. After tracking, let's say you discover you’ve been spending $150 a month on takeout. Thinking that’s too much, you decide to set a budget of $75 for the following month. Despite every effort to stay on track, maybe you chose to spend time with your family, not cooking and cleaning up, or maybe after a long and stressful day at work, ordering out was just easier. So by the end of the month, you still spent $125.

Remember, your budget is your spending plan. Rather than judging your spending, you can now use this information to tweak your budget with intent. You may decide that there are times when spending money on dining is a worthwhile expense and choose to cut back on other expenses instead. Or, maybe you discover that to cut back on take-out, you need to start prepping meals in the morning to avoid end-of-day splurges.

It can take several rounds of analysis and refinement to create a budget that fits your lifestyle and aligns with your goals.

Problem #4: You’re not a natural saver.

It seems like some people are natural-born savers. They may have their own money setbacks—such as failing to invest in worthwhile purchases—but budgeting can be easier when you tend to feel good about saving and practice financial self-care. On the other hand, spenders may impulsively make purchases and have trouble with repeatedly going over their budget.

Solution: Remember your goal and replace spending with another action.

If you want to learn how to stick to a budget and save money, you may need to set aside time for self-reflection. If you didn’t clearly list your goals when you created a budget, having these front and center will be important.

You could even put a sticker on your bathroom mirror, or your cards, with a reminder of what you’re working toward. Not just how much money you need, but how you’re going to spend the money or feel in the future.

Additionally, try to figure out what triggers your impulse purchases. Often, stress and boredom can lead to overspending. Or, you may find yourself browsing and buying online as a way to put off other tasks. Building awareness around your triggers is a good first step. Then, rather than trying to stop outright, see if you can circumvent your spending habit by replacing it with something that better aligns with your goals.

Problem #5: You feel like you’re the only one budgeting.

Feeling like no one else budgets can actually be a two-pronged problem. First, you might assume you can spend as other people do, but you don’t observe other people budgeting. After all, when you’re out shopping you only see other people who decided to spend money, not the ones who decided to stay home. Even shopping online, some websites will tell you how many people are looking at or recently bought, an item you’re interested in.

Somewhat related, our survey found that most people don’t talk about their finances. Younger generations are more open to money discussions, but even 18 to 34-year-olds tend to keep to themselves when it comes to discussing everyday financial decisions, bankruptcy, and credit card debt.

Solution: Find a money accountability partner or community.

When you start opening up to others about money, you’ll likely discover you’re not the only one who has questions, concerns, and trouble sticking to a budget.

Having regular money dates with a partner, friend, or family member who is also budgeting can help you find solutions; think of it as a personal financial check-up. However, don’t pressure others into having frequent money talks if they’re not open to it. A slight majority (56%) of our survey respondents feel that thinking or talking about finances can be mentally draining.

If you don’t have someone to discuss money with or don’t feel comfortable sharing something so private, you could look for online communities where you can remain anonymous. The personal finance site Reddit has over 14 million members ready to ask and answer questions about finance, and there are smaller subReddits devoted to specific budgeting platforms.

The Bottom Line

Sticking to a budget can be hard for various reasons, but many of them come down to setting proper expectations and making a mindset shift to focus on long-term goals over immediate wants. These aren’t simply obstacles to overcome, but doing the work can result in significant growth.

You May Also Like

Related Resource Center
Soft inquiries won’t impact your credit scores, and hard inquiries can hurt your scores slightly. Here's what you need to know.
Oct 9, 2023
6 min read
woman on mobile phone image
Having a money plan in place before you turn in your resignation can make the transition smoother. Learn ways to prepare your finances before you go.
Sep 4, 2023
5 min read
Young man relaxing in an orange hammock by a misty lake holding a cup of coffee, looking at laptop on his lap.
Take control of your money and personal wellbeing with tips to recognize burnout and restore your physical, financial, and emotional health.
Aug 7, 2023
6 min read
Woman in pink blazer sitting on ground with laptop in lap next to young girl looking at documents
With six in 10 U.S. consumers living paycheck to paycheck, could budgeting, saving, debt management, or side income be the antidote?
Jul 25, 2023
5 min read
Paycheck to Paycheck
Your credit score plays a role in nearly every financial move you make. Having a great credit score can save you hundreds (or thousands) of dollars a year through lower interest rates on your credit card accounts, personal loans, moving loans, car loans, or mortgage.
Jul 9, 2023
4 min read
Man in denim button up holding a phone, sitting at table smiling
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
2 min read
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
5 min read
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
2 min read
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
less than a minute read
Blog-post
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
2 min read
Man in blue button up shirt and glasses smiling
Related FAQ's
We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.
Nov 29, 2023
less than a minute read
LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.
Jun 7, 2023
less than a minute read
Our process is fast—most members are approved within a few hours. The exact turnaround time you’ll see for your application will depend on your unique details.
Jun 7, 2023
less than a minute read
What Are Some General Troubleshooting Tips?
Jun 7, 2023
less than a minute read
Rates and fees for your auto refinance loan depend on several factors, like your credit history and income. We’ll let you know about any potential fees or other costs during the application process, so you can be sure you’re making the right choice.
Jun 7, 2023
less than a minute read
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
4 min read
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
4 min read
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
3 min read
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
3 min read
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023
3 min read
Change Your Money, Change Your Life
Join our monthly newsletter for tools, tips, and insights to improve your financial health.
  

LendingClub Bank and its affiliates (collectively, "LendingClub") do not offer legal, financial, or other professional advice. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice. LendingClub is not affiliated with or making any representation as to the company(ies), services, and/or products referenced. LendingClub is not responsible for the content of third-party website(s), and links to those sites should not be viewed as an endorsement. By clicking links to third-party website(s), users are leaving LendingClub’s website. LendingClub does not represent any third party, including any website user, who enters into a transaction as a result of visiting a third-party website. Privacy and security policies of third-party websites may differ from those of the LendingClub website.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, and loan term length.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,854 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,191, for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. 

For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2023 and are subject to change without notice. 

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.  

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. ​Deposit accounts are subject to approval. Only deposit products are FDIC insured.

“LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

© 2023 LendingClub Bank. All rights reserved.