Forget about people telling you that you should budget, you should do this and do that.
If you don’t want to budget, you will feel like you are being forced to… and this will make you resent it even more.
Why do you budget?
And if you don’t, what’s stopping you (or do you have another brilliant money plan in place)?
REASONS FOR WHY I BUDGET
I budget because…
A) it makes me feel like I am in control of my money
I spent years in the dark about my money.
I spent without checking (although I never racked up a penny in credit card or payday loan interest), and I didn’t understand the basics of common money sense.
Now, I budget and track my expenses so that I am sure I haven’t forgotten anything, and I can check my final spending at the end of every year, and compare to how well (or badly) I did compared to the previous year.
B) it makes me accountable for reckless spending
Let me dispel any kind of illusion for you: I make money mistakes and I absolutely spend on things that are totally unnecessary.
After I spend my money, I check my Regret-o-Meter. Sometimes it flares up, and I end up returning said item.. and other times, I feel good buying something that wasn’t necessary, because I wanted it for a long time (usually), I had the money for it, and it was in the price range I was willing to pay for.
For all of the expenses that I regret, I try to return the item, or I just eat the cost and learn to do better the next time.
Case in point: Train tickets
I like being organized and worry-free; sometimes too much so.
I recently purchased a NON-REFUNDABLE, NON-TRANSFERABLE train ticket to get from one city to another, on a certain date.
I was SO CERTAIN it would be okay that I forked over $49.27 (it was on a summer sale and I thought I had my dates set).
Then my plans changed somewhat expectedly (I didn’t bother waiting for one piece of information), and I ended up “wasting” that ticket, not being able to use it on that day nor able to get a refund for it.
So I ate the cost and learned a $49.27 lesson about planning too far into the future when a couple of key variables are still not in place.
Stupid, stupid mistake. But I’ll never do that again before nailing down the other details.
C) I can plan for the future
I sleep better at night knowing where every penny is, and what my future, planned expenses are.
I really don’t like being surprised with a $3000 car bill or something, and I can plan for how much I should keep in my chequing account for upcoming expenses, how much I can put away into my emergency fund, and how much I need to set aside for things like my travel fund.