It has been said that a strong building cannot rest on a weak foundation. The same goes for personal finance. If the foundation your personal finance rests on is weak, there are more chances of you either living from paycheck to paycheck or spiralling into debt.
A budget is the foundation on which your financial success rests.
Yet, most people do not practice the art of budgeting. Here are the top 5 excuses for not starting a budget.
1. I have enough money at the end of the month without a budget
If you have enough cash at the end of the month, then there is all the more reason for you to start budgeting. If you spend the cash you have at the end of the month unwisely, then you may be able to buy a lot of cool stuff for yourself but you are also burning a hole in your long-term plans.
The thing about money is, it goes as easily as it comes. So, there may be a time when you need the cash but don’t know how to get it. If you think a budget will put a dampener in your spending, it won’t. What a budget will do is make sure that you allocate your money to what matters most, and leaves you with a plan to build your savings.
2. I am not good with numbers
For some reason, people believe that you need to be a mathematician with two PhDs to start a budget. Well, here’s some good news. If you know that 2 + 3 = 5, then congratulations you do have the skills to start a budget!
If you still have problems with your addition and subtraction, you can always use an app or a spreadsheet. Just download one of the numerous mobile apps made for the sole purpose of keeping to a budget or tracking your spending. All you need to do is key in the information and the app takes care of all of the calculations.
So, this cannot be an excuse that you can use now.
3. I don’t want to fight with my spouse over money
For most people, marriage and money is like oil and water. They just don’t mix. This is mostly because both you and your spouse have different expectations when it comes to money and how you want to spend or save it. However, like with any marital discord, you should work through this.
A budget will help you save for things that the both of you may be looking forward to such as buying a car or taking a vacation.
In fact, it will eventually lead to fewer fights about money since both you and your spouse will be on the same page when it comes to finances.
4. I just don’t have the time
You work gruelling hours every day and the last thing you want to do when you come home is to look at bills and work on a budget. We won’t lie to you. Creating a budget is easy. But tracking your expenses and actually sticking to your budget is both difficult and time-consuming. But only for the first few months. Once you make it past those initial months though, it becomes a habit and it’s going to be as natural as checking your Whatsapp.
You may also learn interesting aspects about your spending patterns when you budget and even make note of what is costing you too much. So, if your mobile bill is too expensive, you could always consider switching to another telco that offers the same services for less.
5. I have irregular income
If you run your own business or are a freelancer, chances are that your income varies every month. So, you think you can’t budget when you don’t even know how much you are going to earn. Understandably, it is a challenge to create a budget when you have an irregular income. Keep in mind, we said that it was a challenge but we never said that it was impossible.
The best way to start would be to take note of your regular monthly expenses. If you know how much you need to pay each month, you have a starting point of how much you need to put aside. Subsequently, you save any extra money you make each month to tide over your expenses for the months where you don’t earn as much.
Moreover, the fact that you don’t earn the same amount each month is all the more reason to start a budget.
We have to tell you though, that there are chances that you may not be successful at creating or even sticking to your budget at first. But don’t let that deter you from trying again. Don’t let it be the reason for you to come up with another excuse for us to add to this list!
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