Budgeting: why bother?
Hands up: who would call themselves a procrastinator?
Many of us would probably admit that we’re not great at tackling tasks which don’t appeal – often finding excuses why it’s not the right time, or putting things off for another day. It’s human nature to focus on enjoyable tasks first and to avoid addressing unpleasant or stressful situations wherever we can.
Which brings us to the ‘B word’ – the dreaded budget.
Creating and maintaining a budget certainly comes under the heading of ‘things to put off’ for many people. Common worries which stop us tackling the task include: “I don’t know where to start!” “I’m not sure what I should include”, “I can’t find the information I need” - and very often: “What if I find that I’m spending more than I can afford when I’m doing my budget, and I have to change how I live?”
These doubts and hesitations unfortunately mean that we sometimes delay addressing this important task until crisis point is reached – at which point it’s a whole lot harder, and can have more serious repercussions.
Let’s take a reality check about what this mythical, complicated budget actually is. Put simply, a budget is the cornerstone of being able to manage our money well. It doesn’t need to be complicated – it is just a tool that puts us back in control of our money. It gives a snapshot of where we are with our finances – what is going in and coming out – which is so useful when it comes to planning.
There are many reasons why having a budget is so important.
Firstly and very importantly, it enables us to take back choice. By starting with an accurate picture of where we are now, we can start to make choices about where we’d like to be. Budgeting helps us to make plans for the future and achieve our goals in realistic ways by staying in control.
Budgeting also means that we are less likely to end up in debt, or get into trouble with our money when we incur unexpected costs.
Having a budget is also good for your health! Worrying about money can be a real cause of stress, anxiety and depression, and associated physical ailments, and taking the first step to address those worries by getting to grips with our finances and making plans about how to move forward can be very powerful.
The Money Course Budget Builder is a helpful tool to allow you to work on your budget on the go (with the app) or in the comfort of your own home (on the website).
As a first step, why not take some time to dig our your bills and bank statements, look through them, and start working out what you actually spend – input your figures into the Budget Builder line by line and let it do the hard work for you!
You might even like to take the ‘One Week Spending Challenge’ - use good old fashioned pen & paper, or the Notes function on your phone, to record absolutely everything you spend during one week – be totally honest! You can then check if you’ve missed anything when working out your outgoings.
Crosslight’s Money Course includes a whole session devoted to building your budget, looking at practical steps to help you get started, and covering topics such as joint budgets, dealing with irregular income, budgeting if you’re self-employed and much more. Take a look at our courses to find out more and book a place – you'd be most welcome to join us!
