Creating a budget isn’t something that everyone does and there are a lot of reasons why people don’t budget. Many have found a reason or excuse to not budget. As a matter of fact, about 68% of people do not have a budget.
Changing your thoughts about what a budget is and myth-busting these top 13 reasons people don’t have a budget might be able to persuade you to dive in.
As a whole, there are many reasons why people don’t budget. From being afraid to face spending habits to think they just don’t need one. Let’s go through these reasons and debunk them.
I know we all have been there – it’s the end of the week and you’re out of cash. You’ve got to make a decision on how to pay for lunch, dinner, gas in your car, or even put some money down on that new pair of shoes from Nordstrom.
So why does this happen so often? Well, I’m here to tell you that is because people don’t budget! What if I told you that by just making a few small changes each month with your spending habits, you could get back on track? And you could have money left at the end of each month.
Reasons Why People Don’t Budget #1: I don’t know how to budget.
In the age of information at your fingertips (literally), this excuse is just no longer valid. There are courses, articles, coaches, and planners to help you through this. You can find hundreds of Youtube videos and experts ready to help you find the right budget for you and guide you through the process.
It’s not rocket science, right? Simply put, a budget is just incoming and outgoing money.
As a first step, you should find out ways to save money. For example, if you go to the grocery store hungry and unprepared, it’s easy for your groceries to spiral out of control. Instead, map out a shopping list and stick to it. You’ll find yourself spending less money than you thought!
Another fun tip is that if you’re struggling with your budget, start small. A good way to do this is by setting a goal to pay off one credit card bill first before moving on to the next. By making the first task manageable and giving yourself a reward once it’s accomplished, you will be more likely to stick with it.
If you need one on one help with budgeting, feel free to reach out for a coaching session.
It takes too long.
I’m not going to lie to you here. It’s a time commitment. Especially when you’re just getting started. The time that you put in at the start will never have to be done again. it’s the initial start-up that you will have to invest but that’s not any different than any new project. Then maintaining the budget is possibly an hour per month, max.
Just getting started is the battle. It will require a time commitment but I promise you, it will “pay off” in the end (see what I did there?).
This is one of the reasons why people don’t budget which can be overcome quickly. Simply set up a time and do it. The more you do it the faster you get. The amount of time you spend pays off. I promise.
I don’t make enough money.
If you think you don’t make enough money to have a budget, then you are the exact person that should have a budget.
Let me promise you, you are going to feel a sense of calm wash over you once you get past the work – and maybe shock. Giving a job to every single penny that comes into your bank account, dismissing all those feelings of helplessness you might have. You cannot control a lot of things that are happening in this world right now, but you can control your money.
I don’t want to know.
Oh, come on now. This is not an adult response. What do you mean you don’t want to know? I’m putting on my “mom hat” and telling you it’s time. It’s time to take a hard look at your money and decide what kind of a human you want to be.
Decide the most important values you want to live by and put those into action using your money.
Make yourself a cup of tea (or glass of wine) and get started. Allow yourself to be vulnerable for a bit and then use that to grow.
It’s too overewhelming.
The entire process of finding out all your debt numbers and seeing how much you spend on groceries…it’s just too much.
You do not have to do it all in one day. As a matter of fact, I would suggest you use baby steps to make small changes over time.
It can be difficult to find the time and energy for all of your responsibilities, including budgeting. It is important that you take baby steps so it does not seem overwhelming at first. Break down what needs changing into small goals like making a dinner plan or setting up automatic payments.
I don’t think I’m alone in saying that keeping track of finances has always seemed too daunting when there are other things going on.
There are just so many benefits of budgeting.
Reasons Why People Don’t Budget #6: It makes me feel bad about my life.
I got an email last week from Julie.
Here’s what she said when asked about budgeting, “I didn’t budget. It was the one thing I never did because it made me feel bad about my spending. If I knew where all of my money went, then I would be able to make a more informed decision about how much money I had and what I could spend on next week’s groceries or that new video game system for the kids. But it also led me to feel like there was no way that I could afford anything fun anymore because almost every penny just went into bills or food”.
People are fearful of what they cannot control, which is why so many people have a fear or anxiety about money in general; the inability to foresee your financial situation can be incredibly difficult for some people to comprehend. Budgeting is an excellent way of taking back control over these anxieties by establishing boundaries and guidelines that will ensure you’re always on top of things financially – but I’m not one who believes this system works well with my personality type, unfortunately!
I have enough money.
However, the lack of a budget has led to your spending savings (if you even have any savings) and putting yourself in debt with reckless purchases.
Maybe you never had much interest in budgets but when it becomes apparent that not tracking where all your money is going may be leading you into financial trouble. This could be due to overspending on frivolous items without considering how things like credit card fees could affect one’s finances if they are incurred too often or at high amounts.
I’m not a math person.
You don’t budget because you think that math is too hard.
People often do not start to plan for their money because they are afraid of the numbers. They may feel like it’s something impossible, or out of reach from them. But in reality, managing your finances needn’t be difficult at all!
Math can seem a scary beast to many, but it needn’t be complicated or inaccessible. It’s important that you have some basic understanding of how much money is coming in and going out for your household so that you know what adjustments may need to be made. This way, budgeting doesn’t feel like such an impossible task!
Managing your finances shouldn’t be hard work – just understand the basics about where all the numbers are at and expenses will start making sense too.
I don’t want to.
This response to budgeting may be hiding a lot of underlying feelings. You’re a free spirit, you don’t want to be told what to do with your money. You like spending money more than saving it. We all need to do things we don’t want to do.
If you don’t want to be dealing with the stress of not having enough money, budgeting is key. It’s easy and only takes a few minutes each day, but it will keep your mind at ease knowing that you are saving for emergencies or unexpected purchases.
Most people find reasons to put off making budgets until they’re in desperate situations like when their checking account gets below 20 dollars–and then they’ll wish there was something they could have done about it beforehand! Maybe if we took 5-10 minutes every day just to think through our finances (what has come into vs what went out) then maybe things would go more smoothly later on down the road too instead of all this chaos from being unprepared?
Maybe instead of asking yourself what you don’t want, you can ask what you do want. Why are you working? What kind of life do you want to give your children? How do you want to spend your retirement? Are you dreaming of retiring at 50 and then traveling the country chasing the sun?
And then how do you get there? The shocking answer is…budget.
Reasons Why People Don’t Budget #10: I’m too lazy.
This one calls for my “mom voice”.
You don’t budget because you’re too lazy, so your finances are in shambles. Do you think that’s not a big problem? If bills go unpaid for long enough the company will send you to collections and then charge high interest rates on any money they lend to pay off those debts. Soon, it becomes impossible to dig yourself out of debt even if all other expenses stopped completely.
This is not one of the best reasons why people don’t budget. Come on…
I guess I’m just trying to say is this: without good financial habits now, one day things could get very difficult down the line!
It causes fights with my spouse.
According to MarketWatch dot com, 41% of divorces were caused by money fights.
You’re not the only one who feels that way!
A lot of people feel like money conversations are a fun topic to avoid. You might think it’s because they don’t have enough, but I’ve found for me, more often than not, my husband and I just disagree on how we should spend our funds together. It can be overwhelming trying to communicate with someone about something so important when you aren’t seeing eye-to-eye or even understanding each other fully in general.
It can be overwhelming trying to communicate with someone about something as important as finances when you aren’t seeing eye-to-eye or even understanding each other fully in general. Not only are these conversations difficult, but the person is working through their own emotions and thoughts on a topic that may make them more vulnerable than they have been before; which makes it hard not to get defensive at times.
The financial aspect of your relationship should never overshadow the emotional one, nor vice versa–but because money influences so many things in life (relationship stability included) communicating well becomes vital for both parties’ happiness together going forward.
It’s also helpful to try to be kind when you’re approaching this difficult conversation. On the other hand, being the person receiving negative criticism may not be as easy to handle, but try to keep in mind that a good relationship doesn’t end with an argument; it’s how you resolve them.
Look, I get it. You’re afraid of what you might learn when you start to budget but the truth is that if you really want to improve your finances and become more secure in life then it’s something you have to do.
The idea of budgeting can be terrifying because we are afraid that it will hold us back from enjoying life, but the truth is if you really want to improve your finances and live a more secure lifestyle then it’s something you have to do.
You might not want to hear this, but the only way you’ll ever be able to afford that new car or your dream house is if you start budgeting today.
You’re probably thinking “Why should I do it when there’s a chance of finding out something bad about my finances?” The truth is though that no matter what happens with your money in five years from now nothing could possibly compare to how great life would feel for being wiser and more secure.
I’m doing just fine without one.
I think this is the most popular of the reasons why people don’t budget.
If you’re having trouble with your finances, a budget can help. A lot of people think that budgets are restrictive, but in fact, they make things easier.
Once you’re a few months into your new budget, it can be hard to remember the days when money was just constantly slipping through our fingers. The best part is feeling more financially secure because we know where all our dollars are going and how much cash we’ll have left at any given time!
A budget doesn’t deprive us of anything – quite the opposite actually! When every dollar has a purpose, there’s less chance for mistakes or impulse spending later on down the road which only leads to bigger problems like credit card debt…and who needs those?
I’ve tried this before without success.
I understand how you feel. I’ve been there. I’ve stopped and started so many times, I’ve lost count. Overwhelm is a big reason why people don’t have budgets and it’s hard to keep track of your money if you don’t have a good system.
It’s easy to feel overwhelmed by budgets, especially if you don’t have a good system. I know it can be hard keeping track of your money when that happens! It can seem like there is always something else coming up and more expenses than income all the time.
It doesn’t matter how old we are or our stage in life, budgeting seems overwhelming at times for everyone. No one likes feeling restricted with their finances and not being able to spend as they please on things right then—but this isn’t an excuse! Making yourself aware of what is going out versus what comes in will help you get back control over your spending habits.
Giving up because you tried once is not the most convincing of the reasons why people don’t budget.
Final Thought on Reasons Why People Don’t Budget
There are so many reasons why people avoid budgeting. Do any of these sound familiar?
It could be because they think it’s too hard or time-consuming, but the truth is that a budget can help you save money and reach your financial goals faster than not having one at all.
Budgeting can help you save money and reach your financial goals! To start, it’s important to understand the benefits of having a realistic spending plan. This includes being able to tell how much is coming in versus going out every month, not getting into debt with credit cards or loans when paying for unexpected emergencies like car repairs or medical expenses.
Saving up instead by living on less than you make each month until there’s enough saved up. Knowing where all your funds should be allocated (such as groceries vs gas vs rent/mortgage payment) is imperative in your personal finance success. Always feeling comfortable about what will happen next financially because nothing seems too hard if most things are already planned ahead.
You may find some of these preconceived notions about what a budget should look like true once you get started on yours; there’s no right way to do it after all! And if starting in earnest seems overwhelming, remember that budgets take less effort over time as long as you’re sticking with the plan.