Introduction: Why people don’t budget.
Learning how to handle money is not something most people like to talk about much. Personal finance is…well, personal. Unless our family taught you how to budget your money, it is not a surprise if you didn’t pick it up from chatting with friends. In some circles, it is an uncomfortable subject. As a result, many people omit this important skill in building their desired future.
So why don’t more people budget? The reasons why people don’t budget vary from person to person but in my experience it often boils down to a few basic things. And they all come from a basic lack of understanding. Here are 4 Reasons Why People Don’t Budget.
4 Reasons people don’t budget.
1. They don’t know how to make a budget.
Basic financial literacy is a skill that everyone should be taught in school but the sad reality is that in most schools in the United States, it is not. And if it is, it often focuses on a debt lifestyle, credit scores, and loan management. Little focus is given to budgeting as the way to build a desired future. The reality is that a monthly zero-based budget is not just a plan for your money, it is a plan for your life! When you budget consistently, every month, the control you have over your future becomes more clear. Instead of living paycheck to paycheck, you begin to see your money and your budget as a means to get ahead. Wise money choices become obvious and poor money choices become easier to see and avoid. A monthly zero-based budget is your roadmap to the future you want.
Learning how to make a budget is not difficult. It just takes a little practice. Using a zero-based budget, consistently over time, will help you develop a skill with lifetime benefits.
2. They are not aware of the benefits of budgeting.
Budgeting is not a math exercise. Budgeting is a skill that helps you live a dignified life. But many people who have never budgeted, and never felt the benefits, are simply not aware of the difference budgeting can make in their lives.
Benefits of budgeting
- It keeps you from wasting money.
- It is the only pathway to long-term success with money.
- The fastest way to crush debt.
- Less stress and more peace!
- Retire with dignity
3. They think budgets are too restrictive.
A budget is freedom. Most people think of a budget as something that is too restrictive; almost like it is a big stop sign. They think once they are on a budget, they’ll have to say no to all the good stuff in life and kiss fun goodbye, right? Not exactly. We think of a budget as the exact opposite. A budget is freedom. Yep, you read that right. Freedom.
A budget is telling your money you are in charge. And once you are making your money behave all that worrying about loss of freedom actually turns into the control you’ve been missing. Being in charge and being in control doesn’t sound restrictive to me. It actually sounds a lot more like freedom.
If you want the freedom to spend without guilt, start budgeting. When you spend within the bounds of your monthly zero-based budget you can spend without guilt!
4. They are afraid of what they might see in the mirror.
Have you ever wanted to know how much money you have in the bank but were afraid to look? We’ve all been there at one point in our lives. At least most of us. So it is not surprising that one reason why people don’t budget is they are afraid to look under their financial hood. A budget does shine a light on your spending habits and sometimes that is not a fun thing to see. But succeeding at most hard things in life begins with a look in the mirror.
Looking at your financial self in the mirror can be a scary thing. Sometimes we think it is easier to ignore the symptoms of poor money management. But it is only easier for the short term. In the long run, you will pay a steep price for not being in charge of your money.
Summary: Why people don’t budget?
We’ve covered 4 reasons why people don’t budget here but the reality is there are a lot more. Sometimes people just think a budget won’t help at all. But the reality is that with a commitment on your part, you can change your financial future for the better. You really can. Start budgeting today and begin to see the benefits.
If you don’t know how to budget we’ve got a lot of resources in this blog to help. Discover the benefits and find the financial freedom that you really want.
To learn more about budgeting and how to build the future you want for you, and your family read more here.
