How do you stay motivated with budgeting?

blue.peter

MEM62 said:

The assurance and peace of mind afforded by budgeting is motivation enough.

Yes, definitely. This is a bigger deal than you might think. Many years ago (mid-1980s), I got myself into pretty dire straits as a result of biting off a bigger mortgage than I could chew. I'd get stroppy letters from my bank manager every few weeks. They only served to add more stress. I had pretty much no social life for several years. Budgeting - and sticking to my budget - was my way out. It took me a while (and a promotion), but I did it. And sticking to the discipline over many years has been good.

MEM62

blue.peter said:

MEM62 said:

The assurance and peace of mind afforded by budgeting is motivation enough.

Yes, definitely. This is a bigger deal than you might think. Many years ago (mid-1980s), I got myself into pretty dire straits as a result of biting off a bigger mortgage than I could chew. I'd get stroppy letters from my bank manager every few weeks. They only served to add more stress. I had pretty much no social life for several years. Budgeting - and sticking to my budget - was my way out. It took me a while (and a promotion), but I did it. And sticking to the discipline over many years has been good.

I think many look at a budget as a burden.  Is far from it as it saves you hassle.  Know how much you have, know what your essential spends are, know what your discretionary spends are and plan to live on less than you make.  

Rich1976

I think it is the word budget or budgeting that people have the issue with. As it can have negative connotations like ‘ being on a budget’ or being restricted in what you can spend.

in reality it is basically deciding how to split up your monthly pay cheque or pension to live life as best you can without feeling restricted, unless your circumstances dictate otherwise 

MEM62

Rich1976 said:

I think it is the word budget or budgeting that people have the issue with. As it can have negative connotations like ‘ being on a budget’ or being restricted in what you can spend.

in reality it is basically deciding how to split up your monthly pay cheque or pension to live life as best you can without feeling restricted, unless your circumstances dictate otherwise 

I think you are right in the way that the word is viewed.  Whilst many might associate a budget with those less well off we all need to do it.  Even those with greater wealth and income will run into trouble if they live beyond their means. It's all about controlling what you have - not matter how big or small that number may be.  

enthusiasticsaver

MEM62 said:

Rich1976 said:

I think it is the word budget or budgeting that people have the issue with. As it can have negative connotations like ‘ being on a budget’ or being restricted in what you can spend.

in reality it is basically deciding how to split up your monthly pay cheque or pension to live life as best you can without feeling restricted, unless your circumstances dictate otherwise 

I think you are right in the way that the word is viewed.  Whilst many might associate a budget with those less well off we all need to do it.  Even those with greater wealth and income will run into trouble if they live beyond their means. It's all about controlling what you have - not matter how big or small that number may be.  

I would agree with this.  People who have high income also do not seem to worry until the debt is quite high so in fact budgeting is not something they tend to do until they are at crisis point. 

For me having and sticking roughly to a budget gives me peace of mind first and foremost. 
It helps me plan how much I can afford to pay for a new car, a holiday, a meal out etc etc.
It helps keep me out of debt. 
It has helped me and my husband retire 8 years early. 
It has enabled me to help my adult children and grandchildren with monetary gifts.  

We would not be able to do any of those things if we did not know how much money was coming in, how much is committed to essential outgoings and how much is spare to spend on things we would like and need. In other words a budget. 

Sarahspangles

Rich1976 said:

I think it is the word budget or budgeting that people have the issue with. As it can have negative connotations like ‘ being on a budget’ or being restricted in what you can spend.

in reality it is basically deciding how to split up your monthly pay cheque or pension to live life as best you can without feeling restricted, unless your circumstances dictate otherwise 

This! For me, budgeting is ‘spending with intention’.

I also think that unless someone has very simple finances, they should consider a paid-for app. I use YNAB. I could certainly recreate that functionality in Excel, I have the skill set. But I put a value on my time.

NorwichMan

I wouldn't necessarily recommend this, but my finances have become so complicated since last summer, with stoozing and multiple credit cards, current and different types of savings accounts, plus I have different sources of income.

If I didn't budget carefully and keep on top of this then I'd very quickly get into a real mess.

That is highly motivating for me to stick with budgeting. I never did it properly before last summer but now I enjoy it. It feels good to know how much I can spend where with confidence.

kimwp

Sarahspangles said:

Rich1976 said:

I think it is the word budget or budgeting that people have the issue with. As it can have negative connotations like ‘ being on a budget’ or being restricted in what you can spend.

in reality it is basically deciding how to split up your monthly pay cheque or pension to live life as best you can without feeling restricted, unless your circumstances dictate otherwise 

This! For me, budgeting is ‘spending with intention’.

I also think that unless someone has very simple finances, they should consider a paid-for app. I use YNAB. I could certainly recreate that functionality in Excel, I have the skill set. But I put a value on my time.

And aligning your spend with your values and what you want to achieve and spend time doing. If you love playing tennis, but can't afford lessons because you spend loads on a phone package you don't really use, that's not good budgeting. 

blue.peter

Sarahspangles said:

I also think that unless someone has very simple finances, they should consider a paid-for app. I use YNAB.

Not necessarily. People should use whatever works for them.

Pen and paper is quite good enough if it's what they prefer. That's what I started with in the 1980s. As I said above, I now use AceMoney. Yes, I paid a little money for it. That was a one-off payment made about 15 years ago. But if I was starting out now, I might well use MMEx. That's free, and appears to have all the functionality that I'd want to manage 24 accounts and two sources of income (increasing to three later this year).

I wouldn't even consider YNAB because of its subscription pricing model. That's an absolute killer for me. But, of course, if you're happy with it, that's fine.

mattbradley91

Totally get what you're going through. Budgeting can be a real challenge, especially sticking to it for the long haul. Personally, what's helped me is breaking down my goals into smaller, achievable steps. I set realistic targets and celebrate the wins along the way. Tracking my spending, even if it's just jotting down notes on my phone, has been a game-changer. It gives me a real-time view of where my money is going. Also, I've started using the cash envelope system for stuff like groceries and entertainment. It keeps me in check and helps curb unnecessary spending. Find what works for you and don't forget to cut yourself some slack – we're all a work in progress!