Why Bother Budgeting?
So what does checking my traffic stats have to do with budgeting? The more I discuss budgeting with members of Gen Y, the easier it is to see that most people go about budgeting, like I used to go about my web stats.
For example, I typed searched for the words Mint+Budget in Twitter. Here is what I found: (I don’t want to include the names, but you will find something similar)
- “Getting our budget in order. Organizing all those uncategorized items in #mint”
- “Is obsessed with my @mint account. Let’s see how long I can stay on budget!!”
- hey Congress, we just balanced our family budget with the help of mint.com, google docs, and Dave Ramsey, why not give it a shot?s
Instead of seeing people take action, to actually improve their financial situation, I see people stuck in the pattern I was. They are not using the information for their advantage. If they were, people would be Tweeting…
- “Decided to switch to a high interest rate bank, after reviewing my budget in @Mint”
- “Looking at my budget in Mint, I saw that I paid $165 in investment fees last month. Way to high! Now going to move”
- “Giving up eating out for 30 days, after I saw my dining out budget was $250 last month in @Mint.”
Noticed the difference between the first set of real quotes, and the second set of made up quotes? The second set actually included people taking action and improving their finances.
Where to Start
There’s no point in making a budget, to make a budget. You need to actually do something with the budget.
The simplest way to start is to give your INCOME and expenses a SWOT analysis. Go through the last three or so months of data and identify your:
- Opportunities and