Why You Should Budget - Really

budg·et

'b?jit/

noun

1. an estimate of income and expenditure for a set period of time.
2. a scary and misunderstood document used to confound your spouse and frustrate yourself.

If you’ve ever felt that the second definition above for the most important (and despised) of all household monetary tools is true, you’ve come to the right place.  I hope to slowly and delicately introduce you to the B-word in today’s post.

The first budget I ever composed was at the age of 24.  I was out of college for over a year, paying my bills on time and making enough money to go on vacations and join the local gym without a second thought.  I ate out and saw movies often.  An internet connection and 150 channels on my TV were a must.  I never wrote a grocery list and never considered shopping around for car insurance.  Then....dun dun dun...I discovered something that changed my financial worldview forever.  The dreaded budget.  Ruiner of all fun and despiser of your spending joys.  

I know what you’re thinking because I often thought the same things.  I don’t need a budget because I never overdraw my accounts.  I don’t need a budget because it’s too constricting on my freedom to spend my money.  I can’t do a budget because I’m just not good with numbers and it sounds overwhelming.  I can’t do a budget because my spouse won’t get on board.  While all those points are very real and difficult reasons possibly holding you back from beginning to track and adjust your spending using a budget, here are two key reasons why you should reconsider. 

1. Written Plans Work- This one shouldn’t be all that surprising.  When you write down a goal, you have a better chance of successfully completing it.  Think about all those New Year’s resolutions that people make.  How many of them are dropped after week 1?  If you’re like me, you probably rode the obligatory new beginning wave of optimism without really writing down and discussing with others how you might accomplish those resolutions.  According to a study by Dominican University of California’s Dr. Gail Matthews, you are even more successful when you share your goal with a friend (re: spouse) and ask them him or her to hold you accountable. 

2. Budgets Kill Marriage Fights- According to the Barna Group, 26% of all evangelical Christians who have been married in our country have experienced divorce, and the most common reasons people site for divorcing include a lack of commitment, arguing, unrealistic expectations, inequality among partners, and lack of preparation to handle marriage.  Given that list, it shouldn’t be a surprise that 27% of all fights in marriages have to do with money.  A written and agreed-upon plan is the perfect fair-minded mediator to smother the inevitable disagreement about finances.  Couples have to determine a budget and write it out together.  It causes them to consider the future and plan for expected purchases and think about how to respond to financial crises.  No partner can cry foul or feel slighted if given the chance to sit down and have a voice in the important decisions that must be made together about the family’s money. 

My wife and I have been utilizing a budget for about 3 years now, and whenever she wants to purchase something for her closet or I want a new tool, we just go to the budget and check what the balance is for that category.  If the money’s there, we don’t need to appeal to one another or feel guilty about spending our money.  We’ve already made a plan and discussed the amounts.  The only question is: Is the money available?  It’s incredibly freeing!   

If you are still reading, you might actually be thinking something crazy.  Budgets...can...be a good idea.  It’s been 6 years since I wrote that first budget, and while it hasn’t always been easy, it’s been incredibly worthwhile.  I encourage you to stay tuned for my next post in which we’ll discuss a starting point for setting up and preparing a budget.