9 Reasons People Don't Use Budgets

I used to hate budgets and never stuck to them but then I came across a simple article by Andrea Dekker about why people don't do budgets and that was the starting point for to begin a budget. Before I had heard people talk and read articles about budgets but it never helped shift my thinking. What this article did was get into my psychology around budgeting and that helped take the steps to start one. I can't say every month I successfully stick to it but I'm better than I used to be and I believe I'll get even better.

Anyway here are the reasons written by Andrea Dekker:

1. Accountability:

This is a biggie. Most people don’t like to be held accountable…for anything! And they certainly don’t want someone or something telling them how they can and can’t spend their money. Accountability means limits…and those are never fun.

However, by implementing a few limits, you might just be able to save up for something really big….

2. Apprehensiveness:

I find that most people simply don’t know how to create a budget or where to start. So if you’re looking for a really simply budgeting tool, I’d encourage you to download the same system I use…for free!

3. Image:

I think some people are just too proud to live on a budget — they feel it makes them look poor. However, I know quite a few people who look rich, but are really struggling financially.

I guess I’d rather look poor and have my finances under control!

4. Denial:

Without a budget, or any knowledge of how much money is available (or unavailable), it’s very easy to justify every dollar spent — and sometimes we just want to spend without thinking about it. This is why American’s are so far in debt.

Unfortunately, embracing denial only works until you lose your job, get sick, or receive a foreclosure notice. Then the mess is unavoidable and undeniable.

5. Laziness:

Yes, it takes effort to create and maintain a budget. However, if your budget is too much work, then you’re doing something wrong. I only spend about 5 minutes a day updating my budget (yes I do it every day).

It might take a little longer when you first get started, but budgeting should be very easy.

6. Fear:

Starting a budget can be a bit intimidating if you’ve never done it before. Plus, what if you start a budget…but then don’t stick to it? You don’t want to be a failure to you? Believe it or not, I know lots of people who don’t have a budget because “they’ll probably just mess it up anyway” — what a pessimistic attitude!

Seriously, I’m definitely a “live by the rules” type of person and even I splurge every now and then! A budget doesn’t have to be perfect, and if you slip up — just try to do better next time.

7. Time:

Many people think that in order to save money and live on a budget, they have to spend time clipping coupons, planning their weekly meals, going to five different groccery stores each week, etc.

Well, I only spend about 2 hours a week planning all our meals, clipping coupons, making my grocery list, finding deals, etc. And even if you don’t want to do any of that, there are still a bunch of ways you can stick to your food budget without cutting coupons or spending any extra time.

8. Money:

I’ve honestly heard people say that they don’t have a budget because they don’t have/make enough money. Um…well, how do you expect to get/save/make more money if you don’t have a budget or a plan?

I can guarantee that Dave and I do NOT make a lot of money {he’s a Christian school teacher and I run my own business}. Yet we are still able to save over 50% of our income, contribute monthly towards various investments, put a chunk towards renovating our home, give to our church, and still live comfortably. This is ONLY possibly because we have a really strict budget.

And even if you can’t save 50% of your income; I bet you CAN save an extra 5% just by being more conscious of how and where your money is spent.

9. Spouse:

Yup, I know people who don’t use a budget because their spouse doesn’t want them to. This sounds absolutely crazy to me… and unfortunately, I don’t have a good solution for this one.

But keep trying… if they like to travel, set some type of savings goal and use the money you save for a family vacation. If they like going out to eat, encourage them to save $5 every day and then use that money for a fun weekend night out.