Let me start with the obvious: Budgeting is scary if you have never done it before, or if you know, in your heart, something is going very, very wrong with your money every month.
Maybe you have more bills than income and you’re struggling to pay everything on time (or just to pay it at all).
Maybe you’re floating on borrowed money (eg: credit cards, personal loans).
Maybe your spouse isn’t on board.
Maybe you think you know what’s going on, but you’re still in the red every month.
Maybe it’s just been easier to ignore your money problems because facing them is scarier than ignoring them (for now).
The problem with each of these scenarios is you don’t know exactly what’s going on. You may think you know. You may have a head that’s great for numbers. You may even work for a financial institution.
If you think you know what’s going on, can you answer these questions?: How much, exactly, did you spend on eating out last month? How about your electric bill? What day is your mortgage/rent due?
You can probably answer the last one, but not the other two, and that is the problem. [Read more…]