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Why Budgets Don’t Work

As a species, humans are notoriously poor at following through with their plans. In this series on living a sustainable life, Tara Siegel Bernard writes that, “Sticking to a budget — a dirty word even among many financial planners, who prefer the more euphemistic ‘spending plan’ — feels too much like dieting. And we often fail at both for the same reasons: too much focus on the restrictions, not enough on fun. So it’s not surprising when people end up binging later, more than making up for dollars not spent or calories not consumed.”

To read the article and some of the advice she gleaned from her interview with Rick Kahler, CFP, click here.

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One Response to Why Budgets Don’t Work

  1. Bobbie in Atlanta January 4, 2011 at 9:42 am #

    Great article. And people should understand that overspending happens at all income levels. For clients who are really stuggling (and for me) I suggest that all expenses where there is lots of discretion (clothes, food, eating out, gifts) be paid in cash. Cash is taken weekly with a little extra at the first of the month and the first of the quarter.