Oh this is so boring, I just can't keep it up. What's the point?
Lewis W. Hine, George Eastman House Collection
Almost every website I look at says you need a budget. They say "a budget is the first and most important step you can take towards putting your money to work for you instead of being controlled by it and forever falling short of your financial goals." And goodness knows, over the years I have tried to make budgets and keep to them, and always failed. How come?
Perhaps because in fact, not everyone does need a budget. If things are working for you and everything is stable, why bother taking the time? And sticking to it is hard. Sarah at Wisebread looked at this question and suggests that "you probably need a budget if:
...your income has suddenly dropped.
...you make "enough" money but are still living paycheck-to-paycheck.
...you spend all your money every month but you have no idea where it goes.
...you know that some aspect of your spending (like eating out or buying shoes) is out of control.
...you want to make some serious (or even drastic!) changes in how you spend your money.
...you suddenly have new financial obligations (such as caring for an aging parent)."
Except for the fact that my aging mom can take care of herself financially, I meet every one of those criteria. So a budget it is.
But then Trent says at the Simple Dollar:
"A grid on a paper can never truly contain the complexities of a human's life, nor is it meant to - that's why strictly following a paper budget (for most people) is doomed to failure in the long run."
That is what I like so much about Trent; five thousand websites tell you to have a budget and keep to it, but one or two are honest enough to admit that it is tough to do and harder to keep to.
But in the short run, setting one up tells you where your money goes; it is a picture of where you are. It tells you what is out of whack. And as much out of whack as I am, it isn't where I expected.
