To Budget or Not To Budget; that is the Question? No

Hamlet’s; “To be or not to be” soliloquy represents his internal struggle over the purpose of human existence and the meaning of life and death. www.reference.com/art-literature/hamlet-s-speech-mean-modern-english-554dad92fa6

Personal Budget Preparation – Not Using Time Wisely

“To budget or not to budget,” that is the question?  My answer to this question is; No!!

Some people think that not having a budget is your financial life or death and serves a real purpose in your economic existence.

Let’s put a poisoned blade in that notion right away and here is why.

According to a recent Gallup poll, nearly one in three Americans prepare a detailed written or computerized household budget each month that tracks their income and expenses — a vast majority do not.

According to Practical Money Skills Canada; only 47 % percent of Canadians use a budget to plan their spending.

Before my Canadian readership gets a little cocky about doing better than their American cousins; let’s dig deeper into Canadians handling of funds.

Practical Money Skills Canada goes on to say; Canadians are feeling more in debt than ever with 90% saying they have more debt today than five years ago.

What is the definition of a budget?

A budget is a plan, an outline of your future income and expenditures that you can use as a guideline for spending and saving.

A budget can help you pay your bills on time, cover unexpected emergencies, and reach your financial goals — now and in the future. Most of the information you need is already at your fingertips, but a personal budget takes away the most important asset you have; time.

What can a Personal Budget do for you? Nothing

Creating your budget takes your eye off your real financial story and success.

So if you are not recommending doing a personal budget oh wise one what are you suggesting? (hope you know this is a little tongue in cheek)

My recommendation is what I call real-life or blue-collar financial work forms; one is a monthly income statement with your real numbers; would like to see you go through a full year cycle of expenses to get to know your financial habits and second; economic work form is your net worth statement.

Both your income statement and net worth statement based on today’s technology can quickly be updated every single day.

That old saying; ” A Fool and Their Money are Soon Parted” is losing its steam today as we get access to our financial mirror reflection every day.

I use a banking app that even sends me a message immediately on where I spend money.   The app shows me how much money I spent compared to the same establishment the last time I visited.   You almost feel guilty if you spent more.

Banking App Spending Insights:

• Spending By Category
• Spending History
• Daily Digest
• Spending Spikes
• Transaction History

The most significant return you will experience is on time; take the time to go through these banking insights and your money will be well protected; no budgeting required.