Yes and no. I think in some circumstances budgeting probably isn’t worth it. Are you independently wealthy and don’t have any major hobbies, like maybe a drug addiction? Then I think foregoing a budget is fine. But, even then, I’m guessing wealthy individuals (truly wealthy people) probably do a lot more managing like a business owner would do.
Other than this one instance, here are a few reasons why I think budgeting is worth your time.
You have goals that involve more than getting a grande latte every morning for the rest of your life. Setting big goals requires letting go of insignificant, daily conveniences. Did you know if you forego a $5 purchase just once a week (coffee, breakfast, lunch) that you would end up saving $260 per year? That’s just once a week. It’s amazing how small actions, over time, add up to big actions.
For me that means less bookstore visits and, yes, the aforementioned grande latte.
You have one or two expensive habits that require regular feeding. Golf. Cars. Drinks. Seriously, though, you may have a hobby that gives you some serious happiness. That’s fine. A budget can help you stay in line, keep your happiness items, and still not feel guilty. Books. Books. Books. That’s my happy.
Yes, this post is a little tongue-in-cheek. But I think a budget is worth anyone’s time. If non other than to see where your money is going. I know for a season I felt like budgeting was a chore that didn’t give me much utility. After another season of reckless spending, I had to go back to budgeting. I knew it would get me back in line.
Has budgeting been worth it to you? In what ways? I hear all the time, “you need a budget!” Why? Why in your opinion is budgeting a good thing, or not?