Why do people do a budget?
– They never want to have to leave groceries behind again
– They realise they’re spending more than they earn
– They need to pay off a credit card
– They want to save for a car or a holiday
– They want to pay for education
– They have to prove to a bank they can service and repay a loan
– They want to have money left over to invest
– They want to be able to retire
– They have goals on the timeline to a comfortable and secure retirement.
– They want to leave something to their children
– They want to leave something to help others.
Why do people not do a budget?
– The word itself: how dull! (But it has an interesting history.)
o In earlier centuries, only the wealthy had a budget.
– They find it time-consuming and tiring
o Not as time-consuming and tiring as fending off creditors
– They do one, and then things change
o Be ready for the change; have a pro-active response ready
– They don’t have goals.
o Already living the dream? Don’t let it become an unfunded nightmare!
– They have plenty of time left; I don’t need to worry about that yet.
o Time is the most important thing in your investment portfolio
– They just don’t need to; there’s always cash at the ATM
o Yes, while there’s an income stream and no goals.
– They have nothing to save, so why bother
o All the more reason to look for a saving opportunity
– They don’t want to know how much they’re spending
o Because they know they are throwing money away
– They did one, but then didn’t need it.
o They didn’t need it because they did it. If you do it, you don’t need it.