What to Do When You Still Can't Fit into Your Budget?

A budget on paper looks great. Excel screams that everything is under control. And yet, as usual, the month ends in the red. Sound familiar?

Most people who are just stepping into the world of financial management go through this stage. This doesn't mean that "budgeting doesn't work" or that you're not cut out for the task. It usually happens due to three main reasons:

1. Your budget is unrealistic.
2. You're not accounting for all expenses.
3. Your income is too low in relation to your living costs.

In this article, you'll learn how to deal with the fact that the budget won't balance step by step – starting from diagnosis and ending with concrete solutions.

First Diagnosis: Is the Problem with You or the Budget?

"I Can't Stick to a Budget" – Are You Sure?

We often blame our lack of willpower for our failures in managing finances, but usually, it's a much simpler matter – a technical problem:

• A budget based on estimated data, not actual expenses.
• Assumed amounts are too optimistic.
• Irregular expenses (gifts, doctors, car, holidays) were omitted.
• The budget is too detailed or too general.

Example

Someone plans "800 PLN for food." They previously spent about 1500 PLN a month. It's almost impossible to achieve without changing their lifestyle. After a few weeks, frustration and a sense of failure set in. It's not a lack of character, but a wrong approach.

First Step: Calculate How You Really Live

Before changing anything, you need data. For at least 30 days:

• Record all expenses (yes, even 3 PLN for a bun counts).
• Divide them into categories (food, housing, transport, health, entertainment).
• At the end of the month, make a summary.

If you have access to your bank transaction history, you can export it to Excel or use budgeting apps (like Finchill ☺️) to categorize expenses.

The goal is to establish how much you REALLY spend NOW – before you start changing anything.

Unrealistic Budget vs. Small Income – How to Tell?

To know what to do next, you need to answer one key question:

Is it possible for me to balance the budget with my current lifestyle? Or even after significantly reducing expenses, will I still be in the red?

Quick Assessment Formula

1. Take your average monthly net income from the last 3 months.
2. Take average monthly expenses from the last 3 months (all, no pretending).
3. Compare these numbers.

• If you spend, for example, 5,500 PLN and earn 6,000 PLN – you can manage it.
• If you spend 5,500 PLN and earn 4,000–4,500 PLN – merely "saving" won't cut it, you need to increase income (we'll get back to that).

Minimum "Healthy" Financial Level

Financial security means at least:

• A minimum of 10% of income allocated to savings or an emergency fund.
• No permanent, uncontrolled consumer loans.

If even those 10% are completely unrealistic and every penny goes to basic living, it's not a "budget to be improved." It's a signal that income is too low relative to costs.

Common Mistakes That Bust the Budget

Before we start cutting expenses and increasing earnings, let's remove the obvious "holes in the bucket."

No Room for Irregular Expenses

This is the most common reason why people feel they "never fit into the budget." The plan includes only:

• Housing
• Food
• Bills
• Gas
• Something for "pleasures"

And life adds:

• Annual car insurance
• Visit to the dentist
• New winter shoes
• Christmas gifts
• Washing machine service and other surprises

If you don't spread these expenses evenly over the year, you'll face a "disaster" every few months.

How to Fix This:

1. List all irregular expenses from the last 12 months (or try to estimate them).
2. Divide them by 12 and enter them as monthly categories in your budget:
• Car – service and insurance
• Health (dental, doctors)
• Clothes and shoes
• Gifts
• Holidays or vacation
• Home appliances and repairs
3. Set aside this amount each month in a separate subaccount or "virtual envelopes."

Example:

• Annual car insurance: 1,200 PLN
• Service and minor repairs in a year: ~1,800 PLN
• Total: 3,000 PLN annually
• Divide by 12 → 250 PLN per month

These 250 PLN must be in your budget. Otherwise, once a year your finances will be "unexpectedly" upset.

Overly Ambitious Reduction of Expenses

The problem comes when we try to "cut everything" at once, even by 30–50%:

• “Starting tomorrow, I won't order food, won't drink coffee out, and won't buy anything ‘for pleasure’.”
• After a week, frustration builds, and after two – you give up everything.

A better approach is small but lasting changes.

Example Strategy:

For the first month:

• Reduce dining out by 20–30%.
• Consciously buy fewer snacks and sweets.
• Stick to a grocery shopping list.

Only when you maintain this for 2–3 months, add more elements.

Budget Inconsistent with Your Lifestyle

Are you an extrovert who loves meetings, cinema, and concerts, but you list 0 PLN for entertainment in your budget? That's not a budget – that's fiction.

Rule:

It's better to list 200 PLN for entertainment and stick to it than to pretend you'll spend 0 and then secretly spend 500.

No Distinction Between "Must Have" and "Nice to Have" Expenses

We consider some expenses "essential," even though they aren't.

Example:

• TV package + three VOD subscriptions – are they all necessary?
• Phone subscription for 90 PLN – wouldn't a cheaper option suffice?
• Buying new clothes on "sales" every week – is that really a need?

Exercise:

Take your bank statement from the last month. Ask yourself with every expense:

• Was this expense really necessary for me?
• Did it give me real value or joy?
• Would I make this expense if my earnings were lower?

Mark expenses:

• N – necessary
• O – optional
• U – unnecessary

This is a very sobering exercise.

What to Do When the Budget Still Doesn't Fit?

Let's assume you already have:

• A recorded history of expenses.
• Identified errors.
• Divided costs into categories (including irregular expenses).

Despite this, you still don't fit into the budget. What's next?

Step 1: Verify Your Assumptions Again

Take your current budget and ask yourself a few questions:

1. Did I underestimate amounts "for optimism"?
2. Do I have realistic figures for food, cleaning supplies, household chemicals?
3. Did I overlook categories like hairdresser, cosmetics, parking, tickets?
4. Do I have a "reserve or other" position in the budget – at least 3–5% of income?

Pro Tip:

Add a "Buffer" category in your budget (e.g., 100–200 PLN). Thanks to this, when something "unravels," it won't destroy your entire plan.

Step 2: Simplify the Budget

If the list of categories is so long that you get lost in it, it's easy to "unravel." For many people, broader categories are better:

• Housing (rent, utilities, internet)
• Food (groceries + possibly subcategory "on the go")
• Transport
• Health and Beauty
• Children
• Entertainment and Hobbies
• Irregular (car, gifts, holidays, etc.)
• Savings and Debts

Initially, the most important thing is:

• Do you know how much you spend in total?
• Do you keep track of a few main "money bags"?

You don't need 40 categories for a budget to work.

Step 3: Zero-Based Budgeting Method

This works great when you feel like "money is evaporating."

What It Involves:

Assigning a specific task to every penny you earn until you reach zero. You leave no "free" money.

Example (Income: 4,500 PLN):

• 2,000 PLN – housing and bills
• 1,000 PLN – food
• 300 PLN – transport
• 200 PLN – health and beauty
• 200 PLN – entertainment
• 300 PLN – irregular expenses (car, gifts, etc.)
• 300 PLN – savings and debt repayment
• 200 PLN – buffer

Total = 4,500 PLN. So every penny has its place before you spend it.

Strategy for Cuts: How to Cut Expenses Sensibly?

When the budget is correctly made, but you still need cuts, the question arises: where to start?

Start with Quick Wins

These are expenses that can be reduced without drastically lowering the quality of life.

Examples:

• Subscriptions: cancel those you don't use or use rarely.
• Bank fees and commissions: switch to a free account.
• Phone subscription: check offers, often you can reduce by 20–30 PLN per month.
• Electricity and gas: small habits (cooking with a lid, full washing machine) often save 30–60 PLN.

Exercise:

Make a list of all fixed payments (subscriptions, services). For each, write down:

• How much do you actually use it?
• Can you switch to a cheaper plan or change provider?
• Can you completely give it up, at least for 6 months?

Often, this alone gives 100–300 PLN per month.

Then the Largest Categories

For most people, the largest budget items are:

1. Housing (rent, mortgage, utilities)
2. Food
3. Transport

That's where the greatest potential usually lies.

Food – Most "Leaks"

Typical "traps":

• Frequent dining out or ordering food
• "Eyeballing" shopping, without a list
• Large purchases in small shops (higher prices)
• Throwing away food

Simple Actions:

• Make a shopping list and stick to it.
• Avoid supermarkets "on an empty stomach" – eat something before going out.
• Plan 3–4 dinners a week, instead of buying "we'll figure something out."
• Introduce 1–2 cheaper meals (soups, dishes with groats, pasta, seasonal vegetables).

Savings of 200–400 PLN a month are entirely realistic with minor habit changes.

Housing – Changes Are Harder but Sometimes Necessary

If housing costs consume, for example, 50–60% of income:

• Rent a smaller apartment
• Rent a room instead of an entire apartment
• Share the apartment with someone

These may be the only realistic ways to make the budget balance. Tough decisions, but often they bring the greatest financial relief.

Transport

• Do you really need a second car in the family?
• Can you switch some commutes to public transport or cycling?
• Is it worth switching to a cheaper-to-maintain car?

Each such decision often means several hundred PLN per month in your pocket.

Establish a Minimum Level – "Crisis Budget"

Create two versions of the budget:

1. Standard – for "normal" months.
2. Crisis – when something happens: loss of part of income, unexpected expense, illness.

In the crisis budget:

• Minimize entertainment
• Give up some subscriptions
• Simplify food maximally (cheap, simple meals)

It's good to know in advance what your "crisis version" looks like, so you can activate it immediately in case of need, instead of panicking.

And What If You Really Earn Too Little?

It happens that after a thorough budget analysis, reducing expenses and "squeezing" savings, you still end up at zero or negative. This indicates that the problem lies mainly in the income area.

How to Check This Numerically?

Let's assume:

• Income: 3,200 PLN net
• Basic, untouchable costs (housing, food at the minimum level, commuting to work, medications): 3,000 PLN
• You're not spending on anything "extra" anymore.

Under such conditions:

• You have 200 PLN "leeway" for everything else – clothes, gifts, entertainment, unforeseen situations, savings
• In practice, you constantly dip into the red because life doesn't fit within 200 PLN

Here "even more discipline" won't help because there's nothing left to cut.

Realistic Approach to Increasing Income

Basic ways are:

1. A Raise at Your Current Job
   • Gather specifics: what you do above standard, what results your work has brought.
   • Prepare for the conversation like a mini-presentation: facts, figures, proposal.
   • If the company is in good shape, the chances of success are greater than they seem.
2. Changing to a Better-Paying Job
   • Update your CV and LinkedIn profile.
   • Check what the market rates are in your industry.
   • Regularly look for new offers – one recruitment interview per month is already something.
3. Side Work
   • Simple tasks (cleaning, helping with moves, babysitting, dog walking).
   • Weekend work or a few hours after work (store, gastronomy, deliveries).
   • Selling unnecessary items (clothes, electronics, furniture) – one-time gives several hundred PLN to catch a breath.
4. Developing Skills "for the Future"
   • Online courses (often free) on specific program handling, the English language, data analysis, graphics, etc.
   • The goal is to be in a place where you can realistically negotiate a better job in 6–12 months.

Beware of Consumer Debt

If the budget doesn't fit, it's easy to resort to:

• Credit cards
• Quick loans
• Overdraft on the account

This may be an emergency tool, but:

• It doesn't solve the structural problem
• It increases monthly burdens with installments
• It usually worsens the situation after a few months

If you already have consumer debt:

• List them all: amount, interest rate, installment, number of months to pay off.
• Prioritize paying off those with the highest rate (while maintaining minimum installments on the rest).
• Don't take new ones until you've mastered them.

When Is It Worth Seeking Help from Outside?

You don't always have to manage on your own.

Consultation with a Financial Advisor or Psychologist

Consider:

• Financial advisor or financial educator – helps calculate, organize the budget, see what's objectively possible.
• Psychologist or therapist – if spending is a way to cope with emotions (shopping "to cheer up," impulsive purchases).

When It's Particularly Advised:

• You feel constant shame, anxiety, and guilt related to money.
• You have the impression that "you sabotage" your financial decisions.
• Debts or financial issues are the cause of constant conflicts in the family or relationship.

Managing the Budget Together in a Couple or Family

If you live with someone, you can't build separate financial universes. It's worth:

• Have a "budget meeting" once a month – 30–60 minutes.
• Together set priorities (what we're saving for, what we're giving up).
• Clearly divide responsibilities (who's keeping track of which bills, who's doing the shopping).

A joint plan reduces tensions and the feeling that "I'm pulling all of this alone."

How to Mentally Survive a Time When the Budget Continuously Doesn't Fit?

Financial problems are not just numbers. They are also emotions: shame, guilt, anxiety, comparing with others.

Stop Treating the Budget as a Behavior Grade

The budget is a tool, not a sentence.

• If it didn't fit – it's information: something in the plan didn't work.
• Your worth as a person doesn't depend on whether you managed to spend 50 PLN less on food.

A "student" approach ("I got a 2 for the budget") only makes change harder.

Record Small Successes the Same as Failures

If:

• You managed to record expenses for a month – that's a success.
• You canceled one unnecessary subscription – that's a success.
• You saved the first 100 PLN for a financial cushion – that's a success.

Record them. They build the belief: "I can change something."

Comparing with Others Is a Road to Nowhere

Social media shows:

• Holidays
• New cars
• Dining out

You don't see:

• Loans
• Overdrafts
• Arguments about money
• Results on the savings account (which often don't exist at all)

Focus on your numbers, not on how others "appear."

Example: How to Step-by-Step Get Out of the Perpetual "I Can't Fit"?

Assume the situation:

Anna, 32 years old, works in an office, income: 4,300 PLN net, lives alone in a rented apartment.

Initial Situation

Anna assumes "off the top of her head":

• Housing + bills: 2,300 PLN
• Food: 700 PLN
• Transport: 150 PLN
• Entertainment: 200 PLN
• The rest – "it'll work out somehow"

In practice:

• Food + dining out: 1,200–1,300 PLN
• Entertainment (pubs, cinema, spontaneous shopping): 400–500 PLN
• Subscriptions she doesn't even remember (3 x VOD, 2 x apps): 120 PLN
• Clothes and cosmetics: 250–300 PLN

Every month ends with a 300–500 PLN deficit, which she "patches" with a credit card.

Step 1: True Picture

Anna records expenses accurately for one month.

Step 2: Budget Realization

Anna sees that:

• She underestimated food by about 500 PLN
• She had no plan for subscriptions, clothes, irregular expenses
• Entertainment is higher than she thought

She creates a new budget:

• Housing + bills: 2,300 PLN (doesn't change this for now)
• Food at home: 850 PLN (wants to slightly decrease, but realistically)
• Dining out: 250 PLN (reduce by ~200 PLN)
• Transport: 150 PLN
• Subscriptions: 60 PLN (cancels two least used ones)
• Clothes and cosmetics: 200 PLN (no shopping "for the fun of it" this month)
• Entertainment: 250 PLN (instead of 400+)
• Irregular: 200 PLN (starts saving, to avoid using the card for "surprises")
• Card repayment: 40 PLN more than the minimum installment (80 PLN → 120 PLN)

Total: 4,360 PLN

Goal for the first month: get to this level, don't incur new debt.

Step 3: Minor Cuts and Additional Income

Anna:

• Cooks a larger batch of lunch for work once a week – reduces ordering food
• Meets with friends more often at home instead of bars
• Lists unused clothes and some items on a classifieds portal – gains ~600 PLN one-time, which she saves for a cushion and partially uses for card repayment
• Volunteers at work for paid overtime on one project (additional 300 PLN in a month)

Result after 3 months:

• The budget is balanced (as much inflows as outflows)
• Debt on the card is starting to decrease really
• Has her first 400 PLN in the safety net
• Sees that it's the system's issue, not "inherent lack of discipline"

After a few more months, she looks for a better-paying job because she sees that in the current configuration, there's little more she can achieve on the cutting side.

Summary: What to Do When You Still Can't Fit into the Budget?

1. Stop Blaming Yourself. Just because the budget doesn't fit doesn't mean "something's wrong with you."
2. Gather Data. Record all expenses for at least a month. Without this, you're acting blindly.
3. Realize the Budget. Account for irregular expenses, buffer, realistic amounts for food and entertainment.
4. Cut Smart. First subscriptions, small fixed fees, then food and entertainment; only then serious decisions (housing, car).
5. Consider Income. If it's still bad after honest cuts, focus on increasing earnings.
6. Don't Be Afraid to Ask for Help. Financial advisor, psychologist, partner – seeking support is not a shame.
7. Think Long-Term. Your goal is not to "survive this month," but to build a system that works every month.

A budget that initially "unravels" is a normal learning stage. Like driving a car – no one starts with rallies. The most important thing is not to abandon the whole idea just because the first version wasn't perfect. Each subsequent attempt will be better – provided that, instead of blaming yourself, you draw specific conclusions from the previous one.