Five most common excuses people give for not making a budget

Five most common excuses people give for not making a budget

We discuss common reasons people give for not sticking to a budget.

  • June 7, 2016  
  • |  
  • UPDATED   10:45 IST

Having a monthly budget is the best way to keep your finances from spiralling out of control. Still, there are not many people who do this, preferring to make excuses instead of a budget and sticking to it.
It's no wonder that so many Indians are living from paycheck to paycheck. "Just three days more for the next paycheck, have to make it till then", is something we all keep hearing from friends and colleagues. If you, too, are among those who struggle to find money in the last few days of the month, the first thing you must remember is that this is hardly a problem of income. A number of high earners also face this problem, say financial planners. The problem, more than the money, is lack of discipline, they say.

We bring you five most common excuses people give for not making a budget and sticking to it.

IT'S BORING: It is, but definitely better than being financially stretched at the end of every month. It is also better than regretting after retirement when you will not have anything better to do with your limited resources. "It's mainly not done due to fear of unknown. Some people believe that financial planning is complicated and by complicating things they may not achieve much" says C.A. Arvind Rao CFP & Founder, Arvind Rao & Associates. A budget, remember, will keep you from spending too much and help you get control over your finances.

NOT GOOD WITH NUMBERS:Can you solve [2+3-1]. Yes? Then you surely have the skills to work out a budget. It is just simple addition and subtraction. Surely, it requires time, but it's far better than struggling for years to pay off debt and stressing about money. Also, with technology taking over our lives, there are numerous apps take help you make a budget. Most of these are free. You just have to give them the instructions and they will do the work for you.

HAVE IT ALL JUST FINE IN MY HEAD: You have to keep track of so many things in a month - groceries, credit card/loan/property payments, insurance, savings, investing, rent, work, lunch, dinner, children. So, do you think it is possible to keep track of all the little expenses, apart from the above mentioned ones, in your head? It is downright difficult, if not impossible. A budget at the beginning of the month will make it clear how you can spend your money before you actually do it. There are a lot of other things your brain has to keep track of. Budgeting is too important to be left to its whims and fancies.

DON'T HAVE THE TIME: Do you think you will get time for extra debt repayments, dealing with creditors and finding new sources of credit if you fall into a debt trap? You might be busy, but it is important to get your priorities right. Include budgeting in your priorities as it will help you deal with unexpected expenses and keep you away from the debt trap. Making a budget will take a little longer the first month. Once you start, the next time, it will not take even half an hour. But, in the end, it will keep you away from a lot of wasteful expenditure.

NOT ENOUGH MONEY: This is only because you do not have a budget. If you have an income, you need a budget. "For many, this is money not seen, not experienced." says Lovaii Navlakhi Founder & CEO, International Money Matters. Even if you have a lot of expenses every month, you can surely save a bit of money. A budget can help you see where your money is going and then make the necessary cuts. Make the most of what you have got.

DON'T KNOW WHERE TO START: Sometimes one doesn't know where to start. It's because there is no clear plan, or even a direction map, but it's not a big deal. A budget just involves keeping track of where your money is going and keeping note of it. Navlakhi says, "Sometimes people face a problem taking the first step as this is not taught in school or college. Nor is there a user's manual for this. There are so numany variables, and if you are not comfortable with the topic, you tend to stay away." But gather the courage and take the initial step. Not starting early will be your biggest regret later in life.

WON'T BE ABLE TO SPEND AND ENJOY THE SAME WAY:You like to "live it up". But budgeting doesn't mean depriving yourself of anything; in fact, it's the opposite. It just lets you keep track of where you are spending your money so that you can save for things that you actually want. Budgeting doesn't mean feeling guilty over indulgence; it helps you get what you actually want.

RETIREMENT? IT'S A LONG WAY NOW: This can be disastrous. Also, if you think that you will start saving when you start earning more, it is never going to work. This is because expenses will also rise as you grow old and have more responsibilities. Start with whatever you have today instead of doing nothing for years and then trying to catch up.

The goals seem far-fetched but an early start will help you in reaching them in more ways than one (including the power of compounding). ~