Money and Budgeting: We’ve been doing it all wrong
Daily latte. Impulse purchase at the clothing store. Last minute meal out. Grocery shopping on an empty stomach. Mindlessly swiping your debit card all over town.
All things we do every day. All things that when done without a plan can leave us by the end of the month wondering where our money went.
Many people have some type of a budget, but only about twenty percent of people who have a budget actually write it down. Many more people don’t have a budget nor do they spend time thinking about the money they spend. The subject of budgeting provokes anxiety and discomfort.
Brad Klontz, a psychologist and certified financial planner explains in The Annoying Psychology of Why You Can’t Stick to a Budget written by Kristin Wong (May 9th 2017) how he thinks that having a budget is a bad idea. He says, “I think the entire concept of budgeting is flawed.” He goes on to say, “Your emotional brain responds to the word ‘budget’ the same way it responds to the word ‘diet’. The connotation is deprivation, suffering, agony, [and] depression.”
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