5 Common Excuses for Not Budgeting Debunked by Rachel Cruze and George Kamel

It’s no secret that financial experts Rachel Cruze — the daughter of financial guru Dave Ramsey — and George Kamel are huge fans of budgets. They see budgeting as the starting point in your wealth-building journey. While they hear a lot of excuses from people for why they can’t budget, they’re not buying any of them.

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Here are five of the most frequent reasons people hate to budget , and why they’re nothing more than bad excuses.

Money mistakes the super wealthy never make - that you might be doing now.

I’m Self-Employed and Have Fluctuating Income

One of the most common excuses Cruze and Kamel hear, especially post-pandemic, is that budgeting is impossible for those who don’t know how much they will make month to month. But, as Cruze noted in a recent episode of their series “Smart Money Happy Hour,” you know you’re going to make something. So, their suggestion is to live by a “prioritized spending plan.” With this, you first budget for the lowest amount you think you will earn in a month and make sure you cover the bare necessities: food, shelter, utilities, insurance, transportation. If you make more, that’s great! Start getting to the less-vital categories. If you make less, it’s education for the future.

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Budgeting Takes Too Much Time and Effort

True, Kamel said, budgeting took effort and time back in the day as well. Now, with smartphone and laptop apps that do the majority of work for you, this excuse is just that: an excuse. As Cruze said, it will take some time and effort to set up your budget. You might need to spend an hour or more researching how you have spent your money over the past few months and plug those numbers into the app. But, Cruze and Kamel argue, your time will be rewarded in the form of financial and life goals.

I Make Enough Money That I Don’t Need To Budget

Believe it or not, this is a common excuse that Kamel and Cruze hear. It must be nice, right? Of course, they also hear the opposite take: “I don’t make enough to budget.” But, they argue, either way it’s vital that you budget.

“If you’re not making a ton right now, then you need to budget so that you know … necessities are covered, you have a plan, you feel in control,” said Cruze. And, she added, if you make a lot, it’s easy to not notice how much you spend on things that might not be that important to you and your future. Kamel added that “ lifestyle creep ” is more of a threat without a budget. This is where you spend more as you make more, but never get closer to your financial and life goals because of it.

There’s No Way To Budget for Random Expenses

This is another common excuse Cruze and Kamel hear a lot. And to it, they say, be adults. Prepare and adapt. First, a budget should have a healthy “miscellaneous” category. In fact, Cruze noted that, “Your number one thing is to have a $1,000 emergency fund .” This is for anything from car repairs to doctor copays. If it’s more than that, you’ll need to adjust the budget to accommodate them. For instance, you could reduce the amount for dining or clothes until you’re back on track. The point is, budgeting allows you to weather surprise storms better.

I Don’t Want To Be Reminded of My Lack of Money

Yes, Cruze and Kamel both agreed that this can be uncomfortable and potentially defeating at first. But this is also a potent reason to make a budget. Budgets identify overspending and unhealthy spending, and give you the power to correct it. As Cruze pointed out, “If you made $3,000 and spent $4,000, there’s a problem that needs to be addressed, and the longer you take to address it, the longer it’s going to take to climb out.” The best news is that after a few months, you’ll see progress toward your real financial and life goals.

This article originally appeared on GOBankingRates.com : 5 Common Excuses for Not Budgeting Debunked by Rachel Cruze and George Kamel