While most people understand the value of having a personal budget, only about 41 percent of Americans actually follow a budget on a monthly basis, according to
CNN Money. A budget is a tool that can help you develop good spending habits, save for the future and still have a little extra for unexpected expenses. So, why don't more people have a budget?
Here are some common reasons why people tend to avoid budgeting:
Fear – Let's face it, many of us enjoy “treating ourselves." Some people may worry that if they see how much money they're spending on indulgent things, they'll have to stop.
Unawareness – You might believe that since you are able to cover your bills, you don't need a budget. But without a clear understanding of where your money goes each month, you might be missing out on opportunities to save for your future goals.
Procrastination – You might think that you'll develop a budget “someday." But what happens when that day suddenly hits and you're faced with a difficult financial decision? Sticking to a budget will put you in a better position to make informed financial decisions and ensure you're set up for long-term success.
If any of this rings true for you, now is the time to start budgeting!
Here's a good place to start
Build a budget that will help you spend and manage your money wisely
A well-planned budget can help you take control of your finances and reach your goals. With that in mind, here are some DOs for building a budget.
Now let's also address what NOT to do!
Looking for more ways to improve your budgeting? Check out free tools through our online
Education Center. You can also sit down with certified financial counselors from our trusted partners at GreenPath Financial Wellness. Counselors are available to meet with you on-site at many of our locations. Click here to learn more and schedule an appointment.