What’s this bad word “budgeting” and why are so many people so afraid to do it?

People tend to associate budgeting with things like “cutting back” and “frugal living.” These are not bad things. Sometimes, situations call for you to cut back on some expenses and spend less money, for a greater goal of course. But it’s not all that budgeting is about.

Think of a budget as a set of directions that get you from one paycheck to another. Directions are good, right? They keep you from getting lost. That’s exactly what a budget does. It keeps you from losing money. I don’t know about you, but I’m all for anything that keeps me from losing money.

I don’t have to tell you what would happen if you walked around all day with a blindfold covering your eyes. You’d run into all kinds of things and probably injure yourself pretty badly. If you had the luxury of spending your day in an open field with no trees, buildings, or other people, then being blindfolded might not be so bad.

It’s the exact same way with spending money. If you spend without paying attention to what’s going out or what’s still left in your wallet, you’ll find yourself in pretty bad shape. But, if you’re fortunate enough to have a very large cushion in your bank account, you have nothing to worry about. Any person who’s had to work to accumulate wealth will tell you, you can’t build a cushiony bank account by spending like you’re blind.