If you ask most people why they don’t budget, you’ll probably get the same answer from just about everyone: because it’s too painful. And that makes perfect sense. After all, no one likes cutting back on expenses and tracking their income vs. expenses on a regular basis. But the real question is: Why does it hurt so much? Even though most of us agree that budgeting is painful, many of us fail to notice why exactly that is the case. You see, the reason why most people struggle with creating and maintaining a monthly budget is that they’re reluctant to give up something in their current spending habits. In other words, it’s like when we go on a diet or cut back on carbs, we feel uncomfortable as a result of needing to reduce our intake of certain foods. We may not like it at first, but once we get used to eating less of those salty chips or sugary sweets and focus more on apples and leafy greens instead — not only do we feel better about ourselves for making positive changes for the long-term but also find our new diet much easier to maintain going forward with our new healthy habits from that point onward!
If you ask people what their biggest financial fear is, the top answer will probably be something along the lines of “going broke.” People are scared of not having enough money to pay for things they need and want. Yet, at the same time, we all know that being smart with our money is essential to a happy and healthy life. We also understand that budgeting is a good idea and that it will help them in the long run. And, in spite of all of these, we still don’t do it because it’s painful. So, this pain has to be really big. In this article, we will explore the reasons why most people find budgeting so painful, what are the most common answers I got to the question “why is budgeting painful,” and we will try to look at them from a different perspective. So, budgeting is painful because:
- It takes up time and makes me feel bad
- It feels restrictive, I can’t do anything
- It feels stressful to track finances when you are at the store
- I’m not good at it
And now, let’s dive deeper and explore each from some interesting perspectives!
1) It takes up time and makes me feel bad
Budgeting can be a lengthy process because there are a lot of factors to consider. You have to think about your income, your expenses, your savings, and your debts. You also have to consider your short-term and long-term financial goals. Budgeting can take anywhere from a few minutes to a few hours, depending on how detailed and organized you want to be. All of this information can be overwhelming, which is why budgeting can take up a lot of time. There is clearly no way around this. Budgeting takes time. The only good news is that, as you get more experienced and better at it, the required time to do it will drop. At this point, when you feel that it takes too much time, you can’t easily imagine a future where you already have a lot of habits and automation in place to help you cut this time significantly. We can do a few exercises to see if you could get some different feelings related to time and budgeting, maybe they’ll work for you, who knows? Try to re-imagine yourself with some new skills up your sleeve. Imagine going to the store with everything you need to buy written down. Will you spend less time shopping? Will you spend less money on things that you actually don’t need? Would both of these make you feel better? Of course, so start small, with some basic lists, and then add more and more until you end up with a complete budget.
2) It feels restrictive, I can’t do anything
Yes, of course, budgeting feels restrictive in the beginning, especially if:
- you are used to spending freely
- your spending is often influenced by your emotions
- your spending is influenced by peer-pressure
- you have expensive habits like smoking or drinking alcohol
- live in a culture that encourages excessive spending
There’s no easy answer when it comes to breaking bad habits, but it is possible with some time and effort. If you find yourself spending more money than you’d like, it may be helpful to start by evaluating your spending habits and identifying areas where you can cut back. Track your spending for a week or two to get an idea of where your money goes, and then look for ways to reduce expenses in those areas.
For example, if you tend to spend a lot on eating out, you could try cooking more meals at home. Or, if you tend to spend a lot on clothes, you could try shopping at thrift stores or online consignment shops. Once you’ve identified some areas where you can cut back, set a budget and stick to it. It may also be helpful to find alternative activities to replace the ones that lead you to spend too much money. If you tend to spend a lot on weekends, try finding free or low-cost activities that you enjoy, like hiking or visiting a museum. And if you find yourself impulse buying, try waiting a day or two before making a purchase to see if you still want it.
Breaking bad habits takes time and effort, but it can be done. The best way to break a bad habit is to first identify the triggers that cause you to engage in the behavior. Once you know what causes you to do the behavior, you can work on avoiding those triggers or substituting the bad behavior for a more positive one. For example, if you bite your nails when you’re stressed, try to keep your hands busy with a fidget toy or stress ball. If you overeat when you’re bored, try to find a more constructive way to occupy your time. It’s also important to be patient and understanding with yourself. Habits can be difficult to break, and it may take some time and effort before you see results. Remember to celebrate your successes, no matter how small, and don’t beat yourself up if you slip up – just get back on track and keep trying.
Overall, budgeting feels restrictive as long as you have these 2 things:
- Bad habits you need to cut
- Not enough money to satisfy your basic necessities
But, as you become better and better at it, you will cut all those habits, and then you will start to free up money. And eventually, the wheels will start turning into something that looks and feels more like a gift: “oh, look at this $500 money I managed to save this month. I should allocate them towards this specific activity because I enjoy it the most!”
3) It feels stressful to track finances when you are at the store
There is no denying that tracking spending can be stressful, especially when shopping. However, there are a few ways to make the process less daunting. First, try to break down your spending into categories. This will help you better understand where your money is going and where you may need to cut back. Second, set a budget for each category and stick to it. This will help you stay on track and avoid overspending. Finally, be mindful of your purchases and keep receipts or bank statements so that you can review your spending at a later date. By taking these steps, you can make tracking your spending less stressful and more manageable.
Budgeting apps can help track spending in a variety of ways. For example, many budgeting apps allow users to track their spending by category so that they can see where they are spending the most money. This can be helpful in identifying areas where they may be able to cut back on spending. Additionally, budgeting apps often allow users to set spending limits for themselves and track their progress toward meeting those limits. This can help people to stay within their budget and avoid overspending.
4) It feels bad because I’m not good at it
Even though it feels bad, you have to take into account the fact that budgeting is a process, and it may take some time to get used to. Be patient with yourself and don’t be discouraged if you make a mistake here and there. With a little practice, you can develop the skills necessary to successfully manage your finances. If you’re already good with numbers and you’re willing to devote a few hours each week to learning budgeting, you could learn the basics in a few weeks. However, if you’re not particularly comfortable with numbers or you can’t devote a lot of time to learning budgeting, it could take a few months to learn the basics. There are a number of online courses on learning to budget. Here are some popular options:
- “Budgeting Basics” from eHow Finance
- “Introduction to Budgeting” from Udemy
- “Budgeting for Beginners” from Skillshare
- “Budgeting 101” from Pluralsight
Each of these courses covers different aspects of budgeting, so you can choose the one that best fits your needs. They all cover basic concepts such as setting up a budget, tracking spending, and creating a financial plan. Following one of these online courses will make the difference from saying “I’m not good at it” to at least “I’m comfortable doing it”.
What else can motivate people to try budgeting?
These are the most important pain points I came across when I did some research about what makes people give up the budgeting process, but besides these, I want to give you a few more extra reasons to nudge you to give it a try.
Does budgeting make you happier?
For some people, budgeting can be a real chore and it can make them very unhappy. For others, it can be a helpful tool that allows them to better manage their finances and feel more in control of their lives, which can lead to increased happiness. There are a lot of different ways to budget, so it’s important to find one that works for you. If you’re someone who hates being restricted by a budget, then a more flexible approach may be better. On the other hand, if you find that you’re often overspending and getting into debt, a stricter budget may help you get your finances under control and make you happier as a result. Ultimately, it’s up to you to decide whether budgeting makes you happier. If you’re not sure, it’s worth giving it a try and seeing how it goes.
The 2019 Planning and Progress Study by Northwestern Mutual found that having their finances in order makes 92% of Americans happier and more confident in life. While this does not mean that the budgeting process will make you happier, the end result of budgeting is to bring those finances in order. And having those in order will be a positive thing for most Americans.
Try some budgeting apps!
To get rid of some pain points of budgeting you can try some budgeting apps. Budgeting apps can definitely make your life easier by tracking your spending and income. They can help you stay on top of your finances and make sure you’re not overspending. Plus, many budgeting apps offer features like goal-setting and reminders, which can further help you stay on track. Some popular examples include Mint, You Need a Budget (YNAB), and EveryDollar. For example, the Mint app allows users to see all of their financial accounts in one place, track their spending, and create a budget. The YNAB app (You Need A Budget) helps users to create a budget based on their income and expenses, and track their progress over time. The EveryDollar app also allows users to track their income and expenses, and create a budget, but also includes Debt Reduction Planner and Baby Step Tracker features.
Final words:
Fortunately, there are ways to make the budgeting process less painful. The key is viewing budgeting as an experiment instead of a punishment. It’s about learning what works for you and what doesn’t rather than trying to meet some standard set by someone else. Once you adopt this mindset, budgeting becomes much easier to adopt and maintain over the long term.