As a nation, it seems we don’t know how to make a budget…
On a recent flight to Rome, I was reading through the British Airways “Business Life” magazine. On the bottom of most pages, they include interesting facts and figures.
This week, the one figure that impacted me the hardest was “18 million people in the UK regularly run out of cash before their next pay day”. Wow.
There are currently around 30 million people employed in the UK. The statement “before their next pay day” implies that these 18 million people are employed adults.
Therefore, 60% of employed adults in the UK are regularly running out of cash before their next pay day!!
Personally, this statistic sounds a little incredible to be true. However, let’s assume it is for the time being. I’m going to conclude that, if this is true, 60% of Britons either:
- do not know how to make a budget
- do not keep a budget
- do not keep an accurate budget
- keep a budget but reach a negative figure at the end of each month
Why do people hate budgets?
I’m really not sure. Fear of maths? Fear of spreadsheets? Fear of knowing the reality? Maybe people just don’t care?!
Why do you think that people hate budgets so much?
Don’t panic – the internet was made for things like this!
Not everyone hates budgets, you see. These people love them. So much.
etc, etc, etc…
How to create a budget
I could explain in detail how I made my wonderful Excel budget above, complete with lots of pretty graphs and links and other geeky Excel stuff. But, obviously I have my street cred to maintain. Therefore, I’ll let other people do this for me:
Your money counts – six secrets to create a budget you can stick with
Also, there are great professionally made tools out there to really help you with your budget. Check out Counting My Pennies’ review of You Need A Budget (YNAB) for example.
Any other good links to free help with budget creation?
Does anyone NOT keep a budget? Is there anyone who does keep a budget but finds them in the 60% that run out of cash before pay day? Why do you think this is?