Let’s be brutally honest on this one. Budgets simply don’t work for most people.
Here are six reasons budgets don’t work in the real world.
Budgets suck. They’re not fun to live with. And so most people don’t.
Budgets take time. And you’re too busy to create one, much less stay on one.
Budgets are complicated. Figuring out how much money you’re going to spend on every little category can drive you crazy.
Budgets lead to fights. If you’re someone who wants to budget and you’re married, or in a relationship, in almost every case you will fall in love with your financial opposite and then fight about the budget.
Budget don’t last long-term. I have seen firsthand as a financial advisor that people who say they will budget to save and invest never stick to it long term. In a nine-year career at Morgan Stanley I had one client budget and invest for more than six months. The rest all quit – just like dieting.
So what works if budgeting doesn’t work? What works is AUTOMATION.
You need to make your entire savings and investment plan and financial life AUTOMATIC.
