Budgeting Disadvantages (and How To Overcome Them)

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The disadvantages of budgeting are probably a lesser discussed topic in the personal finance space.

We often preach about all the good reasons to have a budget and don’t focus so much on the downsides.

But as with anything, there are always reasons not to do something. And every system has it’s pros and cons.

So today, let’s discuss budgeting disadvantages and what you can do to overcome them to make money management work for you.

Table of Contents

What is a Budget?

First of all, it probably helps if we are clear on exactly what a budget is and what we mean when we talk about ‘budgeting’.

In simple terms, a budget is a financial plan for a specified time period.

You might be more used to the term when it’s used in a corporate sense.

But just like businesses need to budget their money, there are many reasons why we should to.

According to FinCap, 39% of UK adults (20.3 million) don’t feel confident managing their money.

And a budget is probably one of the first steps you can take to become more money confident.

Because once you get clear on your financial situation, you can improve it.

You can’t change your financial story if you don’t understand it.

How Does the Word ‘Budget’ Make You Feel?

Budgeting has a bit of a bad rep. The word itself conjures up negative connotations.

You might associate someone being on a budget with being poor or having no money.

You might think that having your own budget will mean that you can’t have nice things or spend money on the things you love.

Neither of these things are true, but it’s understandable why this perception exists.

To be honest, it doesn’t matter what you call it.

And if it’s using the word itself that’s putting you off – then call it what you like!

What is important that the process doesn’t get lost just because the terminology feels discouraging.

Budgeting Advantages

Before we get into the downsides of budgeting, let’s remind ourselves of some of the reasons budgeting is actually pretty great.

You know exactly where your money is going each month.
Any mistakes or things that don’t look quite right can easily be discovered and rectified.
It helps you to stop overspending.
You can make plans for surplus cash and work towards your money goals.
It prevents you from living beyond your means and getting into debt.

Budgeting Disadvantages (and How To Overcome Them)

If you don’t budget already, you might be using one of these reasons as an excuse not to.

It’s easier to convince ourselves why we shouldn’t do something than why we should.

Let’s consider these budgeting disadvantages and then look at how we can get past them.

Budgeting is Time Consuming

Modern lives are busy, I get it.

Between work, running a household and raising a family it can sometimes feel like there’s barely any time to breathe.

Budgeting does take time yes. And it’s something that will need time on an ongoing basis.

But it’s important that we make time to do it.

Because the impact having a budget can have on your money situation is far more beneficial than the time you save by not having one.

How to Overcome it

Schedule some time each month to sit down and create your budget like you would schedule any other appointment.
The more you do it, the quicker and more skilled you become at doing it, so it’ll take less and less time.
Once you find a budget that works for you, it will only need tweaking – you don’t need to start from scratch every time.
Explore different budgeting methods and set ups and find what works best for you. You could buy a budgeting journal, use a blank notebook, create an excel spreadsheet or purchase a template to save even more time.

Budgets Can Feel Restrictive

Budgets can feel restrictive. It’s like dieting – telling yourself you can’t eat this, that or the other makes you want all those things more. It’s a quirk of human nature.

So telling yourself you only have £x to spend on socialising this month can make you feel like being on a budget is preventing you live the life you want.

How to Overcome it

There are two main reasons budgets can feel restrictive:

They are
Your mindset

1. If your budget is restrictive (for example you budget £50 a week for groceries but the real spend is always nearer £90) then you need to tweak it.

Budgets have to be realistic. You might think that a tight budget is a good thing because it’ll stop you overspending.

But the truth is, if it’s too tight you’re setting yourself up for failure.

Tweak your numbers to something that still makes you conscious that you have a limit – but isn’t completely unachievable.

2. If it’s your mindset that makes budgeting feel restrictive then you can overcome this with a little introspection.

You might notice in the example above (“telling yourself you only have £x to spend on socialising this month“) we used the word only.

The word itself suggests that it isn’t enough.

When you find yourself thinking ‘I only have £x’ recognise that negative thought pattern and remove it. ‘I have £x to spend on socialising this month’ already feels more positive than ‘I only have £x to spend on socialising this month’.

Budgets Fail

Budgets do fail. Even the best ones.

Things crop up and unexpected expenses that you couldn’t have possibly anticipated do happen.

But also, sometimes we just overspend.

Blowing your budget might make you feel like you’re terrible with money and it’s better to just pack the whole thing in because what’s the point?

How to Overcome it

The point is, budgets fail. And that doesn’t have to be a bad thing.

Instead of viewing it as failure, look at it as a lesson.

“Okay, so we went over budget on eating out that month, why do we think that is?”

Analyse where you think it went wrong, then think about how you can use that information to prevent it from happening next month.

Did you forget you’d agreed to go out for someone’s birthday? – Perhaps you need to check your calendar when you do next month’s budget.

Did have a long day and decide to go out for food instead of cooking? – Maybe you could have an easy tea stashed in the freezer for next time.

Budgeting is a learning curve.

Budgets Require Constant Attention

As we mentioned earlier, budgeting is not a one and done exercise. It’s something that needs doing on an ongoing basis.

What a chore, right? We’ve got better things to be doing than looking at numbers every month.

How to Overcome it

When budgeting feels like a chore, you’re obviously not going to want to do it.

So remind yourself of all the reasons why you are doing it.

Are you saving for a house? Do you want to travel? Do you have other financial goals you want to achieve?

Budgeting will get you there. Stop viewing it as a chore and look forward to the sense of achievement you feel knowing that you are taking control of your money.

Plus, you’re not starting from scratch every time. What took a few hours the first time might take just 10 minutes to review a few months down the line.

Other People

‘What will people think if I tell them I’m on a budget?’

‘How do I say no to invites if it’s not in the budget without upsetting them?’

‘We only have £70 in the budget for food shopping but my other half always buys the expensive brands’

How to Overcome it

You can’t control how other people think or feel.

If you’re worried about someone judging you for budgeting, is that a fact you know to be true or an assumption? Friends and family should be supportive, and if they’re not? Well don’t worry about it – it’s your money not theirs.

Are you afraid of always saying no or offending people by turning down an invite? Well why not suggest a cheaper alternative? Or say not this time but maybe next.

If you’re worried about your loved ones blowing the budget, perhaps you need to chat to them to get everyone on the same page.

Failing that, lead by example and explain why the budget is in place, “By swapping to x brand, we’ve saved £x this week! I’ve put that in the holiday pot. If we save that every week we’ll hit our goal by x date”.