Why Don't People Budget and What are Specific Ways to Create a Good Budget?
Written by: CJ Sherman
But how do you create a budget? What is the best way to do so? Some many tips and tricks that help you create a good budget. You need to know about a few things including your net income, expenses, debt, and money put into savings per month. These are three things that you need to pay for before creating a budget. In a sense, a budget can be the leftover money after paying for all the things listed above. Other things that will help you determine a budget amount are tracking your spending, setting long term and short term goals, making a plan, adjusting habits, and checking in to make sure that you are still on your budget. (bettermoneyhabits.bankofamerica.com)
Most people abide by a lot of these tips, but there is one that not a lot of people do: adjusting habits. For example, when driving to work, gas money may be a need, but a monthly subscription for a radio you listen to is a want. Like I stated earlier, people do not realize how much money they are spending. 65% of Americans do not realize how much money they have been spending each month. And ⅓ of 
People need a budget. A budget’s whole purpose is to allow you to be smart with your money. People aren’t budgeting and are paying the consequences for it. They realize how much little they have in savings, or are being forced to pull money out of savings or other important accounts. Some of you may already have a budget but know the importance of one and how to create a sustainable one. Be smart with your money.
Works Cited
Better Money Habits. “Creating a Budget with a Personal Budget Spreadsheet.” Better Money Habits, Bank of America, 28 Sept. 2020, bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget.
“Budgeting for College Students.” SimpleTuition, Lendingtree, www.simpletuition.com/managing-finances/budgeting/.
Carlson, Karen. “American Budgeting and Saving Behavior from FINRA's NFCS.” InCharge Debt Solutions, 31 July 2019, www.incharge.org/financial-literacy/data/american-budgeting-saving-behavior/.
Debt.com. “Fewer Americans Are Budgeting in 2019 -- Although They Think Everyone Else Should.” Cision, PR Newswire: News Distribution, Targeting and Monitoring, 4 Apr. 2019, www.prnewswire.com/news-releases/fewer-americans-are-budgeting-in-2019----although-they-think-everyone-else-should-300824384.html.
Mint.com, /. “Survey: 65% of Americans Have No Idea How Much They Spent Last Month.” MintLife Blog, Intuit, 3 Aug. 2020, mint.intuit.com/blog/budgeting/spending-knowledge-survey/.
officialdc_com. “The Ultimate Guide to Budgeting.” DebtConsolidation, DebtConsolidation.com, 24 Jan. 2018, www.debtconsolidation.com/budgeting/.
I think its interesting that despite the fact it should be common sense to budget your money a lot of people don't, which makes me wonder if the people who don't budget ever got taught how to and teh importance of it.
ReplyDeleteIt is surprising to me that only 32% of Americans have a budget. Especially considering 65% of Americans don't know how much money they spent. This means most Americans have little idea how they are actually managing their money, which is very concerning. Especially in today's day of age when everything in our world is constantly changing, you need to manage your money well in order to ensure you have some for a rainy day.
ReplyDeleteI liked how you added the national average of spending for Americans, I never realized how much we spend on average as Americans. I agree that all little things add up cost-wise when you are creating a budget and that it is important to realize the impact that it could make on our daily lives. Do you think that the average spending would differ from state to state as well?
ReplyDeleteI understand how to create a budget, but the question still lingers as to why Americans choose not to budget. I know in my situation, a reason to not budget would be a lack of knowledge or future endeavors. Are Americans too lazy? Do they lack financial resources to do so? I feel as if one large part of your title was not answered as thoroughly as the other half.
ReplyDeleteI agree that budgets are powerful -- but often unused -- tools. I was shocked that only 32% of Americans have a budget. Also, the fact that 65% of Americans don't know how much money they're spending is horrible. I think that this all just comes down to laziness. People are too lazy to create a budget, too lazy to track their spending, etc. I think the hardest part of making a budget is the first step: committing to managing your money. I think Americans are so used to having the results without putting in the effort, so they just ignore budgeting.
ReplyDeleteI never knew that only 32% of Americans had a budget. That does seem like a really low number especially with the benefits of a budget. I wonder if many people just don't want to take the time? I know you said many people overspend and have to take out of their retirement fund too and although everyone knows this isn't good I wonder why it continues to happen. I guess I always thought I was one of the few without a budget and that many other people actually had one so it's interesting to find out that more than 60% of people don't have a budget.
ReplyDeleteI had no idea that 32% of Americans had a budget and yet only 65% of Americans know where their money is going. It is very interesting to consider when thinking about budgeting. Do you think that budgeting would really benefit the rest of the people that don't budget or budget properly? Do you budget? Would you be able to budget if you were living paycheck to paycheck with back payments due on overdue bills?
ReplyDeleteAmericans aren't preparing for their futures and I wonder what impact this could have on the economy and future generations. Budgeting is vital for a reliable and stable retirement and future for Americans and I could see a future with a lot of angry older folks demanding the government to step in to secure their retirement. Similar to the case with the demand for student loan debt currently.
ReplyDeleteBudgets are important to setting up people for their futures. The idea that only 32% of Americans have one is a little concerning. Budgeting may be intimidating but it is pretty much necessary for later in life. My question is what effect is this going to have on the economy in the future if people end up not financially stable in their older years? And how will economic changes be dealt with?
ReplyDeleteThat is crazy to now know that only 32% of Americans had a budget. That seems incredibly low. It seems like a necessary and important piece of a person's future, and if people don't budget correctly, how will they ever retire? If they don't have the money to support themselves for the rest of their old years. Will this eventually effect the people who ARE budgeting now? In the future when others who didn't budget need money will a lot of it come from those who were smart and actually thought of their future selves, because that does not seem fair nor right when it isn't their fault.
ReplyDeleteIt's definitely odd how low of a number it is for Americans that do have a budget and 65% of people don't know how to budget and are aware of how much they spend. I'm definitely a part of those numbers-- I always tell myself I'm gonna save money and have a monthly budget for spending but I always go over or I forget that I had a budget in the first place. It's crazy how we subconsiously know that these things aren't good and we should probably consider budgeting yet we continue to make these mistakes that cost us in the long run. How do you think we can start budgeting even though we have no prior experience? How much should we be putting aside a month/weekly? Or even-- when's the best age to start budgeting? I feel like you could've gone more in depth on how to create a budget-- you mentioned short term goals but didn't specify what so I feel like you didn't really go into that side of your title as much as you did why we don't budget.
ReplyDeleteThough budgeting may sound like something everyone should its not surprising that only 32% of Americans have a budget, there are a lot of factors that go into budgeting, some people may not even know how to budget or where to start.This article is great in explaining ways to create one. Its also crazy how 65% of Americans don't even know how much they are spending their money on so if those Americans could take a step back and look and realize that they should start budgeting it would help them in the long run.
ReplyDeleteThe national spending statistic really suprised me for average americans. It's frioghtening as well as how much debt we are in as a society
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