The Problem with Keeping a Budget

[diazalex]

That is budgeting. The looking back is accounting.

[shades]

Yeah that's great I think there is a word for that.... Oh yeah it's BUDGETING!

[laundrygoddess]

Telling your money where to go is a budget. Csp is a budget with a net worth attrachment.

[ClaxtonBay]

The Conscious Spending Plan is a type of Budget.

[nanaagyekum]

lol my brother, you just described budgeting 😂😂

[omni]

Budgeting is literally deciding in advance how you will spend your paycheck will be spent

[Pieter]

In accounting terminology, a budget is always forward looking. Why do people continue to call “tracking actual expenses” a budget? And, there’s no way to draft a meaningful budget without having (detailed) insight in actual expenses. Plus, a budget only helps if you subsequently compare it to actual spending. So, I believe that if you want to properly monitor your expenses, you will need to track the actuals (and make a budget).

[dan.b]

Stop inventing terms to differentiate yourself, telling your money where to go before the month begins IS budgeting.

[Katie-dyzx]

I have a budget (a rather complex one) and I love it. I call it my ‘You, Inc. Plan’. I celebrate my wins and work on my failures and my budget showcases both because I put where every $ goes. Without it, I’d totally be lost.

[rhondavigil]

We budget. It works.
Debt free and living my rich life.

[iliketoknit]

I love this approach, it’s been working really well for me and my partner!

[jennifercrosdale]

So when Congress sets the budget each year, they should just stop because it makes them feel bad?
I'm a dietitian and budgeting calories is the same as budgeting money. I teach patients who want to lose weight or gain weight, it's all about being conscious of the in's and out's (food vs exercising). My patients complain that they don't want to track calories because "it makes them feel bad". The alternative is blind eating. If budgets aren't made and adhered to, you are just blind spending and you'll never be in control of where your money is going.
I loved the show called "Til Debt Do Us Part". The financial coach teaches the clients to use cash and track expenses so they know where every dollar went. It's really an eye-opener when people realize for example that they were spending $700/month on Starbucks coffees.
My clients will say the same to me when they start tracking calories and reading labels of food. They say, "OMG, I never realized that little bag of chips at 7-Eleven was 900 calories and I didn't even get full". Once the awareness is plugged in, smarter choices can be made.
Hubby and I track groceries/eating out/booze expenses and set a limit each month. It only takes 1 minute out of my day to look at the bank account and track these expenses. On months that I don't track these categories we spend $500+ more than we should.

[mwedzi]

A budget is looking forward. Of course we aren't businesses, but can you imagine saying to a business: "a budget doesn't work because it only looks backwards", lol. A budget is a PLAN for your money, whether you are a business or a household.

[ducksdman]

Another problem with budgeting is if you have a surplus towards the end of the month, you try to spend all that money. Better way is to change your money spending “culture”, it’s the same reason why most millionaires drive a Toyota. Even if they have money, they don’t spend it or feel uncomfortable “wasting money”.

Ramit also talked about this before, identify what’s important to you and spend responsible amount of money there. If you have extra, don’t spend it just because you have it.

[osirisra]

This is just marketing. It's a budget that you've marketed as something different.

[GXShade]

I like cash limit instead of using budgets.

[ppoppoiop]

I'm surprised by the 10% investing figure. I would have expected higher.

[azeemsiddiqui]

He just says this to simplify it for YouTube. Literally in his website he has budgeting articles.

[AG-sogl]

Fixed costs are just that. Variable costs you can manage..

[poolking]

Lol it's the same thing. People have fun money built in to their budgets too