It has been said that a strong building cannot have a weak base. The same goes for personal finances. In case the basis on which your personal financing is based is weak, there is a greater chance that you will live from paycheck to paycheck or become an obligation. A budget is a basis on which your financial achievement is based. However, many people do not practice the art of budgeting. Here are the 5 best excuses for not starting a budget.
1. I have enough cash at the end of the month without a budget
If you have enough cash at the end of the month, at that time there is one more reason for you to start budgeting. If you spend the money you have at the end of the month recklessly, at that time you can have the ability to buy a considerable amount of interesting things for you, but you are also wasting a space in your business plans.
What happens with cash is that it is as easy as it is presented. In this sense, there may be a period when you need cash, but you do not know how to do it. If you think a budget will cushion your expenses, it will not. What a budget will do is make sure you allocate your cash to what matters most to you, and leave you with a plan to collect your savings.
2. I’m bad with numbers
For some reason, people assume that you must be a mathematician with two doctors to start a budget. Well, here is some encouraging news.
If you have problems with your addition and subtraction, you can always use an application or a spreadsheet. Basically, download one of the various portable applications created with the sole motivation of keeping a budget or tracking your expenses. All you have to do is enter the information and the application takes care of all the calculations.
In this sense, this can not be a reason you can use now.
3. I would be inclined not to fight with my life partner for cash
For many people, marriage and money are taken after oil and water. They essentially do not mix. This is largely because both you and your life partner have unmistakable expectations about cash and how you want to spend or save it. However, as with any marital struggle, you should work on this.
A budget will allow you to save for things that both of you can anticipate, for example, buying a car or taking a vacation.
In fact, it will eventually lead to fewer disputes over cash since both you and your life partner will be on the same page regarding finances.
Related: How do you introduce the essence of budgeting to your spouse?
4. In essence, I do not have the time
He works hard hours of work and the last thing he wants to do when he returns home is to take a look at the invoices and work with a budget. We will not cheat you. Creating a budget is easy. In any case, keeping track of your expenses and, in fact, meeting your budget is problematic and dismal. However, only for the first months. However, when you overcome those initial months, it becomes a habit and it will be as natural as verifying your WhatsApp.
You can also learn fascinating aspects of your spending patterns when you make a budget and even take note of what is costing you too much. In this line, if your portable bill is too expensive, you could always consider switching to another telecommunications company that offers the same administrations for less.
5. I have an irregular salary
If you keep your own private business or are an independent professional, your salary is likely to vary every month. In this line, imagine that you can not make a budget when you have no idea about the amount you will earn. Understandably, it is a challenge to create a budget when you have an irregular salary. Keep in mind that, we said it was a challenge, however, we never said it was unthinkable.
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Lowest-income loans will give you the assurance that you can buy a house without saving between 10% and 20% of the cost of an underlying part. In addition, it is more imperative to assume that you can manage the cost of the reserved portion consistently once you move.
The best way to start is to take note of your regular monthly costs. If you know the amount you have to pay each month, you have an initial reason for the amount you must set aside. In this line, you will save the extra money you earn each month to keep your expenses during the months in which you do not earn to such a degree.
Also, the fact that you do not earn the same amount each month is another reason to start a budget.
The Psychological Barriers to Budgeting
Budgeting can be a daunting task for many Singaporeans, not just because of the practical challenges, but also due to the psychological barriers that prevent us from effectively managing our finances.
These barriers can stem from our upbringing, societal pressures, and personal beliefs about money. However, by understanding and addressing these psychological hurdles, we can pave the way for a healthier relationship with our finances and achieve our financial goals.
One common psychological barrier is the fear of deprivation. Many people associate budgeting with cutting back on all the things they enjoy, leading to a life without fun and enjoyment. To overcome this, reframe budgeting as a tool for allocating your resources in a way that aligns with your values and priorities. Instead of focusing on what you have to give up, concentrate on what you’re gaining – financial security, peace of mind, and the ability to afford the things that truly matter to you.
The Fear Factor
Fear is another significant psychological barrier when it comes to budgeting and managing finances, and this can manifest in various forms, such as the fear of financial instability, fear of missing out (FOMO), or fear of not having enough money to cover unexpected expenses.
For many Singaporeans, especially young adults, the fear of financial instability stems from the uncertainty of employment, the burden of student loans, and the high cost of living in the city. This fear can lead to anxiety and stress, making it difficult to take control of one’s finances. To address this, educate yourself about personal finance, build an emergency fund, and develop a long-term financial plan
The constant pressure to keep up with friends’ lifestyles and participate in social activities can also lead to overspending and financial stress Redefine your priorities and learn to say no to things that don’t align with your financial goals. Find alternative ways to socialize and have fun that don’t involve spending a lot of money, such as exploring free community events or organizing budget-friendly gatherings with friends.
The Importance of Budgeting for Enjoyment, Not Just Necessities
One of the biggest misconceptions about budgeting is that it means cutting out all the fun and enjoyment from your life. However, a well-designed budget should allow for both necessities and wants, ensuring that you can enjoy life while still working towards your financial goals.
Take the time to reflect on what truly brings you joy and fulfillment, whether it’s traveling, pursuing a hobby, or spending time with loved ones. Once you’ve identified your priorities, you can allocate a portion of your budget towards these activities, while still ensuring that your essential needs are met.
It’s also important to find a balance between short-term enjoyment and long-term financial stability. This might mean setting aside money each month for a special treat or experience, while also contributing to your savings and investment goals. By striking this balance, you can avoid the feeling of deprivation and maintain motivation to stick to your budget in the long run.
Why It’s Crucial to Simplify Budgeting Process
By simplifying the process and finding a system that works for you, budgeting can become a manageable and even enjoyable part of your financial routine. One way to simplify budgeting is to use the 50/30/20 rule. This approach involves allocating 50% of your income towards needs (such as housing, food, and transportation), 30% towards wants (such as entertainment and dining out), and 20% towards savings and debt repayment. By using this framework as a starting point, you can easily categorize your expenses and ensure that you’re covering all your bases.
Another way to streamline the budgeting process is to use technology to your advantage. There are numerous budgeting apps and tools available that can help you track your spending, set goals, and stay on top of your finances. Find a tool that aligns with your preferences and working style, whether you prefer a hands-on approach with spreadsheets or a more automated system that syncs with your bank accounts.
Finally, remember that budgeting is a skill that takes practice and refinement over time. Don’t be discouraged if you don’t get it perfect right away. Start with a simple system and gradually make adjustments as you learn more about your spending habits and financial goals. Celebrate your progress along the way and remember that every step you take towards financial wellness is a step in the right direction.
The Bottom Line
Ultimately, All Singaporeans should stop procrastinating before it is too late. Life is really tough if you do not have money and it is not easy to borrow from your friends and relatives without being judged. Should you ever need advance cash and personal loan from licensed money lenders, contact EasyFind today.
