I’m Poor. Do I Really Need to Budget?
Tl;dr: YES!!!!!!!!!!!!!!!!!
Out of all the excuses people throw out for not budgeting, citing their struggles with poverty or living paycheck-to-paycheck gets me going the most.
“I already know where my money’s going – to everything I need to do to survive. Budgeting that will just depress me further.”
“What would a budget do for me when I’m not earning a living wage? Make me guilty about the only things that give me pleasure? No thanks.”
“A budget would only make me angry. Seeing that I don’t have enough is rage-inducing.”
I chose specifically emotional responses here because not having enough hits you hard emotionally. It amplifies your fears for the future and despair you might live this way forever. That’s tough for anyone to go through, and it’s hard to talk about with feeling like you’re being pitied or despised. There’s a cultural belief in America that poverty comes about from your own failings, and that belief makes the majority hesitant to ask for – or seek out – help.
As a result, anything touted as help can be seen in the negative: as insensitive, as insulting. When it comes to budgets, the most common advice revolves around cutting out expenses that are not vital to your survival. Things like salon visits, video games, Netflix, and coffee shops. These things don’t help you physically survive like food and water does, pundits will argue. You’re only keeping yourself down if you refuse to look at these expenses and cut them!
Where the Common Advice Fails
During my own brush with financial insecurity I actually did try to cut out everything that was a discretionary expense. You know where it got me? Friendless, and feeling miserable. Those “discretionary” expenses could be the only sparks of light in your existence; the pundits don’t consider that. Maybe the only thing that gets you through the workday is knowing you can go home and watch another Netflix episode on the couch, or that you can go get your nails done at the salon on Saturday. It really is the little things that make life worth living; without them, we’d give in to the very same depression and guilt and rage that my examples cite at the top.
If you see a budget as constraining, it’s time to redefine what you think a budget is. Budgeting gives you freedom instead, and it helps you way more than you think it does.
How?
At the VERY LEAST, it helps you figure out how to best keep yourself on track. There’s more than one approach to budgeting, and one might work out better for you than another. Do you need to organize every single line item that you spend money on? Do you need to go the bucket route and have expenses grouped under different umbrella categories? Do you just know how much money you have to spend and straight-up stop spending once you hit that target? Figure it out mindfully. As long as you’re mindful about where your money’s going, you can keep whatever it is that gives you joy. Know your budget so you have an easily-consulted point of reference for where every dollar is going and why.
People of All Incomes Need to Budget
Doesn’t matter if you’ll be poor forever or if you win the lottery tomorrow. Doesn’t matter if you’re upwardly mobile or if you’ve already hit the top 1% of high earners. If you’re going to be poor forever, might as well know where the money’s going. There’s more ways to save money than you might think.
If you’re going to get a high-paying job, budget now so you’ll have that engrained habit for a brighter future. You’re not gonna be part of the high-earning poor. You’re going to build wealth, using your budget as a crucial assistant to your success. Here’s where you can get the specifics on how to get that done. No matter what, I’m here for you. Let’s reach that mountaintop together.
Are you still getting started with your budget? What else should I consider when talking about budgeting?