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The Reasons People Don’t Have a Budget

box of treats with coffee image for j m lesko article The Reasons People Don’t Have a Budget

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Why Don’t More People Have a Budget?

A budget is a great way to get and keep people on track with their finances. It lets you see what money is coming in and what is going out. Obviously, you want the inflows to be greater than the outflows and the bigger the spread, the better. So, why don’t more people have a budget?

One big reason people don’t budget is that they want instant gratification. We see something on television that is cool, some new electronic gadget, etc., and we want one. Kids see the newest toy and it is immediately on their radar.

Credit cards make it easy to buy and defer payment. So when the urge to buy is strong, people justify that they have time to pay it off later. However, do this enough and you’ll find your balances on the credit cards to be much greater than you can manage.

There are people who make budgets but then cheat on them. They end up using all kinds of excuses as to why they spent above what the budget allowed. This is a big reason why people fail with budgets. After they cheat once, it becomes easier to do so in the future.
The key to staying on track with a budget is to focus on why you have a budget in the first place. When you do that, you can say to yourself anytime you get the impulse to buy that it will ruin that future goal. Once people start to see their balances grow due to budgeting, it helps to reinforce and motivate people to stay on track.

If you create a budget and find that the outflows are greater than the inflows, you will need to cut back on expenses or increase your income somehow, or a combination of both. Increasing income has become a bit easier with the internet. You could post your skills online and pick up some freelance work in this way. This is something the entire family could get involved with. Over time, if you stick to your budget you should see the benefits. These will more than make up for the effort required at the beginning of the process.

Many people find they prefer working in this sharing internet economy and choose to do it full time. As long as it brings in the necessary cash to stay within the parameters of your budget, you could choose to do this yourself. Just make sure you factor in everything that you are giving up working for someone else.

john m lesko head imageTo Your Success,
John M Lesko 

Certified Financial Educator & Marketer
Helping organizations and professionals use
financial education in their marketing efforts

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