Budgeting Excuses

A budget in the simplest definition is a tool used to track expenses. This enables more awareness about where your money goes. Having this awareness can help you establish restraint and good habits. This can carry a pessimistic implication of being in a mindset of scarcity. Self-governance is not always an easy feat, but changing perspective can make that mountain feel more like a molehill. A positive way to envision a budget is a spending plan based on income and expenses.  We know that as soon as money comes in it usually goes out just as fast. A spending plan should be a gateway to building and establishing long-term financial stability.

Our behavior patterns, interactions, consumption, interests, and activities make up our lifestyle. Budgets are seen as a restriction to our desired lifestyle. They should be seen as a guideline of financial self-management that allows us to plan for the lifestyle choices we want to make. It is much easier to hold yourself accountable when you can see how much of your hard-earned income goes to the choices made. When you can hold yourself accountable to your financial reality any financial goals you have can be achieved.

Yes, there are only twelve hours of daylight and twelve hours of moonlight. Nevertheless, at one moment we were at fault for slipping into this lackadaisical plea. As humans, we will have different perspectives on the things we value. The things we value the most will always be the first to fill our calendars. Making a spending plan can be a huge chore for some. I used to proclaim I was allergic to manual labor when my father asked me about my chores. His quick response would usually be “sneeze through it” or “take a Zyrtec.” The chores still had to get done.  When you prioritize your spending, much like chores, you know exactly where your money is going, thus avoiding the process of trying to figure out how to pay for an upcoming or unexpected expense.

You never have to build your budget alone. There are oodles of budget-building apps and websites, even in your OmniCAP portal, to unload the unknown of where to start. They are designed to automate the once-perceived time-consuming process. Seeking expertise from financial professionals is another way to develop this habit. After all, many wealth management firms use budgets as the bedrock of their service model.

Lastly, there are no age or income requirements to make a budget. Good habits do not form overnight or even in a few days. They take consistency and time to develop, so don’t worry if you don’t get it done in a day.  But waiting to start will only cause more of a disturbance in the future. I first started making budgets for my friends and co-workers in my senior year of high school. Being high schoolers you could imagine how deep our pockets were at minimum wage plus cash tips. Humor aside, my friends were always complaining about not having any money because it all got spent.  So, I asked, “Do you have a budget?” and “Would you like help making one?”  Once the budgets were made the complaints stopped and their money habits quickly improved. A budget is a basic tool, but it will forever be a staple in the pursuit of long-term financial stability.

Dylan Lippe