Many people think that living paycheck to paycheck is an income problem, but unfortunately it’s more simple than that. It’s basic budgeting, or lack thereof, that keeps 30% of households who make over $75,000 living paycheck to paycheck. According to financial planner Orlando, there is just no way anyone can keep track of money coming in and going out, identify problematic overspending areas, or grow financially without implementing a budget.
I’m Not Good With Numbers
You don’t have to be a math wiz to create and follow a monthly budget. Budgeting requires almost no skills whatsoever. In the past balancing a checkbook, and keeping track of cash and credit card expenses could be seen as difficult. But now you don’t even need a calculator, because by using a spreadsheet, or budgeting app, all of the math is done for you. All you need to do is download it and input your specifics.
I Don’t Have Time
When you first start to budget, yes, it will take some time to start the process, but only an hour or two, maximum. That is because you need to go through old statements, bills, and spending habits and discuss your finances with your partner. But then each subsequent month, the budgeting process will get quicker and quicker. Never longer than a few hours and once you’re a few months into the groove, it takes practically no time at all. But any time that it does take, is worth every second, because this process will keep your finances on track.
I Keep Track of Everything in My Head
You should definitely be keeping a running list of expenses and income in your head, but that cannot be the only method of budgeting. There are just far too many items to be able to accurately track. For example, it’s impossible to keep: the mortgage, HOA, gas, electric, car, netflix, food, clothing, cell phone, student loans all straight and separate every month. Luckily, budgeting is easy, and once you start your budget, you don’t need to try and remember all of those running expenses. The computer will handle all of the heavy lifting for you.
It’s Boring
Budgeting is boring. There are some people, myself included, that enjoy it, because of the big picture benefits that are to come from it. There is a very minimal time requirement to budget, and there are quite a few necessities in life that are, in fact, boring. But we do them because we must. Budgeting should be added to that list. At around 30 minutes a month, even if it is boring, it’s not that much time to be bored, and when your finances grow and your financial stress lessens, you’ll be thankful you consistently do the slightly boring task that is budgeting.
I Don’t Have Any Money Left
This is easiest one of all because the reason there’s no money left to budget is because you aren’t budgeting. If you have any money coming in at all, you have something to budget, because a budget is simply telling you how much of your money should go where.
It isn’t complex and doesn’t have to be, but it is necessary. If you’re looking for financial stability, growth and to reduce stress and worry about the present and future of your money, start budgeting, it’s as simple as that.
