Of my 565 friends only 5 responded...seriously, only 5! That's less than 100th of a percent!
Here are the 5 replies I received:
1. I tried. I do somewhat. Fear of seeing how much I owe, how little I have.
2. Always have and always will!
3. I know my fixed expenses very well but sitting down and actually keeping up with a monthly budget was just too time-consuming for me
4. I do a yearly budget, it’s easier to keep up with and gives a good overview of your finances.
5. I don’t; Like to be depressed and they way we spend money would depress anyone.
Of these answers, numbers 1 and 5 were from men and the rest were from women. The last one almost seems happy and impressed that he does not budget; I happen to know this person and he is married with 2 small children...to me, there is nothing impressive about not knowing where your money is going.
Four weeks ago today I was laid off from my job and the day before we had to spend our entire emergency fund on repairing our a/c due to 90 degree temperatures. We have been faithful monthly budgeters for the last 2 years and because of that practice I knew exactly what money we had coming in and going out. This has allowed us to be ok while I am looking for the right job for this new season of life.
Debt.com shows the following Personal Finance Statistics:
How many Americans actually keep a formal budget?
A Gallup poll found only about 1/3 of Americans (32%) maintain a household budget
- Only 30% of Americans have a long-term financial plan that includes savings and investment goals
- You’re mostly likely to budget if you make at least $75,000 per year
Treading financial water
A 2017 report in MarketWatch found that half of American households currently live paycheck to paycheck
- 19% have $0 saved to cover an emergency expenses; 31% have less than $500 in emergency savings
- Not surprisingly, about 49% of Americans are “concerned, anxious or fearful about their current financial well-being”
- Interestingly enough, low income is not always to blame for financial hardship. Only 1 in 5 people (20%) facing financial hardship fall below the poverty line and make less than $40,000 per year
However, a separate 2017 survey by Career Builder found more than three-fourths of U.S. workers they surveyed struggled to make ends meet.
Wow! Based on these statistics low income does not seem to be the issue, it appears to be more an issue of debt and lack if intentionality regarding money than anything else.My husband and I follow the Dave Ramsey Debt Snowball plan so we have been actively paying down our debt, had our starter emergency fund ($1000) in place and had structured our income vs. payout so we had a cushion of about 4 weeks. The steps we have been following for the last 2 years have really been a lifesaver during this unexpected change in our lives.
If you have never done a budget before or are struggling to find one that works for you and can be customized to your specific needs, feel free to try out my Google Sheet budget. It's pretty simple and allows you to have fixed expenses, monthly and weekly expenses if needed. It also allows for individual paycheck entry for a 2 income household.
Once you do your first budget just copy that tab for the next month and make any necessary tweaks such as a difference in your electric or a bill that only hits ever 2 months (like our water bill). There are also tabs where you can keep up with your current debt balances so you always know exactly what you owe and track your annual expenses such as memberships or vehicle registration renewals. This tab has really come in handy to remind me to budget those items once I get to that specific month or even a month ahead depending on the amount needed.
If budgeting has intimidated you in the past maybe give my Google Sheet a try and see if it helps break things down to allow you to stay on track. If you try it please let me know how it works for you!
Happy Budgeting!!!
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