Budgeting is boring, right? Maybe—but that doesn’t mean you shouldn’t take it seriously. Here are six things that could happen to you if you aren’t prioritizing your budget.
You Don’t Have Savings Goals
Why bother with savings goals when you aren’t even sure what you’re saving for? Without clear goals, it’s nearly impossible to save for important things, let alone fun things like a vacation. But with a budget, you can set measurable savings goals and break them down into monthly targets. For example, let’s say you do want to go on that vacation in six months, so you realize you have to put away at least $200 to make that happen.
You Avoid Conversations About Finances
Avoiding conversations about your finances is a major red flag that you aren’t focusing enough of your efforts on them. Have open conversations about your finances, maybe with a friend or trusted family member. It’s even better if you think they’re responsible with their money; they can often provide excellent insight, even if they’re in the same boat as you.
You Overly Rely on Credit
Are credit cards your best friend right now? That probably also means they’re your worst enemy—you just don’t know it yet. It’s easy to swipe your card for everything from groceries to that late-night pizza delivery, but before you know it, you’re buried under a mountain of debt. And while that doesn’t seem like the worst thing now, it could come back to haunt you. If you’re someone who struggles with self-control, the best course of action is to simply leave your credit cards at home, use your cash for daily expenses, and, say it with us, budget!
You Ignore Your Debt
Those who don’t budget often don’t care much about their debt either. They’d rather not think about it; they can simply ignore it and hope it goes away. But that’s not how it works: you’ll eventually have to deal with higher interest payments and late fees when you stick your head in the sand. Face your debt head-on by setting up a repayment strategy. And, of course, a budget!
You Make Way Too Many Impulse Purchases
When you don’t make budgeting a priority, impulse purchases become the norm. You might find yourself buying things you don’t need—and sometimes don’t even want. Aside from budgeting, you can curb the desire to impulse spend by waiting twenty-four hours before making a non-essential purchase. You can also create a wishlist for items you want but don’t need, and you can budget for them so you’ll get them when it makes sense for you financially rather than whenever you feel like it.
You Feel Overwhelmed by Life
If you aren’t serious about budgeting, chances are you feel like your life is often spiraling out of control. But the good news is that you can always put the power back in your hands and eliminate financial stress or anxiety by making better choices. Budgeting is the best and fastest way to do this, so do yourself a favor and start today.
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Robyn Goldfarb
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.