When fall arrives my thoughts go to football, pet industry seminars, pumpkins and budgets.
All of these are fun and exciting to me. One thing I love about my business is helping business owners create their budgets. However, I know that for most people fall does not bring thoughts of preparing a budget and made me wonder why do we not budget?
I decided to see what the internet had to say about this topic and found some common themes that felt familiar. My confession is that I’ve not always been a budgeter even with my financial educational background. This is a relatively new habit that has made a big difference in the success of my businesses. As Mindy Cray said in her online post:
Budgets are what separate the financially successful from the financially mediocre.
Most of us want our businesses to be financially successful and to me a budget is the number one financial tool to achieve those goals. If you are avoiding the budgeting process know that you are not alone. Hopefully reviewing the common reasons why people don’t budget will help you overcome them and give it a try.
- You have plenty of money leftover – Good for you! Stop for a moment and think that a budget could increase your profits and if you don’t need that money personally you can give it to charity.
- Making more money does not motivate you – This one I relate to and found motivation by setting an experience goal that money would help me to achieve. Making more money is going to allow me to buy a beach house to enjoy with my family and make it fun to be away from work.
- Avoiding the control of a budget – Much like dieting or exercise a budget can feel controlling and not much fun. The key is to reward yourself for small progress steps, like creating your budget and making progress toward the goal you set in number 2 above. Find ways to celebrate the positive aspects of operating with a budget.
- Unresolved emotional issues – This is another one that hit home for me as I have had to do a lot of internal reflection on my relationship with money. Our views on money are formed by our childhoods and often a self-perception of our own worth. Spending time being honest with ourselves and our feelings can remove blocks that prevent us from making the money we deserve from our businesses.
- Don’t know how to create one or it’s too time-consuming and complicated – Get help! Your bookkeeper or accountant can help you prepare a budget and learn the process.
Why don’t you budget?
Check out our Budgets Made Easy Workbooks to step you through the creation process.