Let’s face it—budgeting isn’t for everyone. No matter how much you preach its benefits, some people will never follow or practice it. To many, it’s boring, restrictive, and just not sexy enough. Honestly, I’m sure some would rather go bankrupt than follow a spreadsheet that tells them how much they can spend and where.
Want to spend $500 on groceries this month? Sorry, that’s $100 over your monthly budget for that category, so you’ll either have to cut back somewhere else or just forget about it. Need to fix your car’s AC but your budget for auto repairs is $250 and the repair costs $400? Too bad—just roll down the windows and hope it doesn’t get boiling.
You get the idea.
Budgeting is often seen as too methodical and limiting. People want freedom when it comes to their money. After all, they work hard to earn it, so why shouldn’t they enjoy it however they see fit—with no budget telling them what they can or can’t spend on, or how much is “allowed” for each category?
But here’s the truth: while you absolutely have the right to spend your money how you want, your money is finite. Every dollar has a destination, whether you plan for it or not. Sooner or later, something’s got to give. And that’s exactly why budgeting matters—even if you despise it.
Budgeting without having to Budget
So if someone has never budgeted and would rather go bankrupt or even beg for money than to budget, what is one way to convince them to start doing it? For one, if they have been living their life and spending their money with no issues, why should they need to budget after all? First off, we have no idea if their financials are in perfect shape, and even if they are well maintained, budgeting can make them even better. For example, do are their finances being properly allocated? Are they saving money? Are they investing for their future and retirements? Are they saving for a rainy day? You see, the state of your finances is relative and subjective and what may appear to be fine to you, may look problematic to someone else who is more experienced with personal finance and budgeting.
One way to get someone to start budgeting, is to start small and not to create a budget right away. First, get to know what this person spends most of their money on. This person could be yourself or someone else you are interested to help start with budgeting. Let us say they spend a lot of their money on gas (due to doing a lot of driving) , groceries (having a relatively big and busy family) and utility bills (gas, hydro, phone, internet etc) . No real budget needed (paper or spreadsheet based) . Just mental tracking for one month and see how much these 3 categories add up to. Once you have the total, subtract from your net monthly income (income after taxes and other deductions) .
Making the Transition from a Mental Budget to a Real One
Once you have the result, you are already half way to creating a real budget. Encourage this to be done for next 3-4 months and stick to it, even adding more categories to it. The person will then realize that this simple practice is helping them clarify and give them the big picture on their finances. For example, they will realize the percentage each category is taking from their budget and what do about it. Are you OK with bills taking up to 30% of your overall net income? Should you may be look into cutting your cable, or using less hydro or gas etc. These decisions wouldn’t be as easy to ponder without having this data that comes with the implementation of a budget. Eventually, once you get used to making these monthly (or whatever interval you choose) mental budgets, you will then be so used to the concept, you will want to take it further and have a real budget on paper or on a spreadsheet.
So, for those who shudder at the thought of spreadsheets and restrictions, remember this: budgeting doesn’t have to be an immediate deep dive. Start small with mental tracking of your biggest expenses. This simple step can illuminate where your money is truly going and subtly pave the way for more conscious financial decisions. You might just find that gaining clarity and control over your finances, even in small increments, is far more liberating than the perceived freedom of not budgeting at all.