Why We Don't Budget Anymore

Image: Northfolk

As we step into the new year, many of us started setting resolutions, listing the things we want to start doing along with the ones we want to stop doing. Making more money or being better with money is usually a top priority for many they enter into a new year.

How can we know how much more money we need to make if we aren’t tracking what we currently make and how it’s flowing through our bank account? The answer is simple – we budget.

Budgeting is usually considered to be a long, tedious process and seen as unnecessary to some. It can also be seen as complicated and rather intimidating if one doesn’t know where to start.

Another reason some might avoid it all together is because of the worries it brings, especially if you know you are currently already in a deficit. The best way to tackle these is to face it head on. As the famous phrase goes ‘fail to plan, plan to fail’. In this case, it couldn’t be anymore applicable.

Image: Kelly Sikkema

Planning is a necessary skill that we need to utilise now more than ever. It gives you a sense of stability and control especially during the current economic climate. Monitoring your income, outgoings and savings can provide you with great insight into the next steps to take, whether that’s new career opportunities, big purchases or simply; peace of mind.

Using a good budgeting tool is a great way to get started and we don’t mean the back of an old letter, receipt or the notes app in your phone. You need to be able to have something you can return to each month, check if you are keeping within your allocated spend and see how much you could potentially save the whole year.

There’s a few unexpected up-sides to budgeting efficiently. One of them being an improvement in your credit score. As you list down all your finance costs, you’re listing down all the credit and store cards you have and keeping track of the monthly payments due which means you are less likely to forget a payment.

It can also provide you with the reality check you need, pushing you to think twice before you open that new credit card or opt for another subscription, thus encouraging you to be more disciplined with your money.

A few minutes each month reviewing and allocating your money accordingly can go a long way. If you’re not sure where or how to start; The Starting Concept offers a simple and easy to use budget template. The tracker has been pre-populated for you, all you have to do is put in your numbers and start working towards your goals.

Let’s start the year how we mean to go on!