Why is there so much negativity around budgeting?
"Your budget is the TOOL that will help you change your financial life." Coach Lana
Recently, a prospective client who makes well into the 6-figures and who has no savings or investments, went into a long dissertation with me about how budgeting would not help him (fyi, he gave me permission to share this). I relayed that the largest corporations and organizations in the world have budgets, which says something, but he wasn't listening.
I'll admit, when you've been doing work for a long time, you have a subconscious habit of pigeonholing scenarios. For example, in my banking days, if an employee told me about a gentleman who has a very high income and doesn't have savings or investments, I would categorize him as an overspender who doesn't want to budget because he doesn't want to be held accountable or he doesn't want to face the reality of his financial situation. Moreso, he doesn't want to do the work required to change. To be honest, I would have told the banker to introduce him to our latest credit card that gives him 3x the reward points when he uses it, to encourage him to use our card for all his spending; which we know he spends a lot. I would also suggest that he/she/they share our current car loan and mortgage rates, because you see, spenders spend and they aren't overly concerned with how much more they actually pay for things when they borrow the money. Banks love customers like this, because they pay a lot in interest and fees. In my banking days, we probably would have given him something that said "Platinum" on it to make him feel special or elite.
As a coach, it is dangerous for me to put people in boxes. I simply cannot. Everything is based on the individual in my work. Honestly, it was never a good idea when I was in banking either. I've never seen boxes and stereotypes fair well, but I digress. Getting back to the question; why all of the resistance to budgeting?
In my professional opinion, budgeting evokes feelings of deprivation. It is viewed as being too detailed and taking too much time. Also, a lot of people consider themselves to be not good with numbers. Lastly, something like shopping, for example, provides an immediate high or rush and budgeting is viewed as confining or a blockage to those good feelings. So how does someone overcome this when they want to start a budget? What is the solution?
The solution is navigating your money in a way that flows naturally for you. It's similar to exercising. Some people love the gym while others like working out at home. Some people love team sports, while others like running, cycling, or swimming alone. Some people love water skiing, while others like snow skiing. Granted, all of these take initiative to get started, but like most things, once you get going, it becomes second nature. The key is and will always be, consistency.
My point to the gentleman who is now a client, and to you is, you must start. Once you start, you will find out what works for you and what doesn't. You will determine approaches like, having a spending allowance per pay period where you can do whatever you want to with the money, is a great route for you because it doesn't negatively impact your financial goals.
Another point is, you have to look at why you have so much resistance towards something that can help you a great deal. I heard someone explain moving stones in a creek. When you move a large stone, it changes the direction of the water flow. If you continue to move and place stones where they were not originally, eventually the entire direction of the water will change. If you have heavy emotions, stress, and worry about your finances, yet you are putting up resistance to ideas and change, you are changing your financial direction. A budget will help you remove blockages and establish a natural flow. The key is to start, spend 1-2 hours a week with your budget, and be consistent.
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