I know for myself, starting a budget really wasn’t that hard of a decision. I had lived with one in college. And once I graduated and was headed to my first job, I knew having a budget would be absolutely essential. No, it’s the sticking to the budget that I have a hard time with. But that’s another post for another day.
But what about those of us (you) who can’t fathom the thought of ever putting together a budget? What’s the final straw/accident/catastrophe that finally pushes someone to do the inevitable deed…put numbers to paper?
The Consumer Reports Money Book says that the two most common reasons people start a budget are the birth of a child and a move to a new home. The next three catalytic events are a major medical expense, divorce, and retirement.
I can certainly see moving to a newly bought (i.e. mortgaged) home. And of course, I think many of us are one major accident away from bankruptcy. Here are a few more common reasons why someone starts a budget…
Increase in Expenses. Of the reasons listed above, the new home, having a baby, and major medical expenses would all be associated with an increase in expenses.
And then there’s the whole, “Dude, who stole my paycheck?”
Loss of Income. One would expect losing a job would offer some serious motivation to start budgeting.
I would certainly agree with this. Although it wasn’t a job loss but a business loss. And the budgeting process was fairly simple when everything final cratered—cut out everything but the honest to goodness, bottom-line essentials. To make matters worse, unknown to us at the time, we were headed into the coldest winter in nearly twenty years. If you’ve ever heated your home with propane, you know my pain.
Another reason people start budgeting is…
In Response to New Information. This is the reason why my wife and I started to budget. When Dave talked about budgeting in a Dave Ramsey Total Money Makeover seminar we attended, it made sense to us.
I love this reason because it means you’re making a change. Pride is gone. Arguing is (almost) gone. It’s as if everything falls in to place and a heavy burdened is lifted. This is the reason my wife and I are attending a Dave Ramsey seminar. Not that I have much love for the man but because I know it will give my wife and I some serious direction we’ve been craving.
You can read the other 5 reasons people start budgeting at MoneyNing.