Budgeting Doesn’t Have to Suck If You Think of It As a Habit and Not a Task
Most of us don’t know how to budget, and it doesn’t seem like it’s hard because of the math. Counting numbers and making a spending plan is easy. It is the behavioral component that confuses us.
Budgeting is easy to think of as a one-off task. You count and calculate how much you need to spend on different categories during the month. It’s easy, but sticking to that plan is another matter entirely. It’s probably more productive to think of budgeting as an ongoing habit, because a successful budget depends a lot on your behavior. For example, you need:
- Resist the temptation to spend
- Find a balance between savings and costs so you don’t burn out
- Track your finances regularly to nip any problems in the bud
The latter is especially important because it is almost a last resort if the first two don’t work. As with most habits, the longer you don’t look or think about your budget, the harder it becomes to get back to it .
This may sound familiar: you’re spending too much money, ruining your budget, and now you’re scared to look at the damage. Instead, you ignore it because it’s too difficult right now. Out of sight, out of sight, right? Except that inertia makes you feel too comfortable not managing your money, which will inevitably backfire.
Of course, automation can help with some things, such as making sure your bills are paid and getting funds from savings in the event of an overdraft. But automation is not a substitute for sustainable habits, and sound financial habits are essential to keep your finances from completely taking over your life.
Bottom Line: Don’t think of budgeting as a one-off task. It’s a constant habit that you need to keep up with.