Budgeting Tips: Budget for the Bad Habits
Preparing a budget that really works
I’ve been on and off budgets all my adult life. It has made me feel like I’m on a money diet at times. I’ve cut out the extras, eaten at home, and made coffee at home instead of hitting the coffee shop every day. I do well for a while, but then life happens and I go back to my ways, at least partially, and then I feel bad because I don’t think I have willpower.
Well, I realized the secret. And it’s not hard. Really. You have to create a budget that truly represents how you spend money and your habits, even the bad stuff.
A Real Budget Example
My husband smokes at least a pack of cigarettes a day. I know what you are saying, “Wow! That’s a lot.” Been there, done that. I can’t make him quit. But what I can do is budget for it. He is going to spend the money no matter what I say. That’s a fact. Why would I not budget for cigarettes when the money is going to be spent? The average price of a box of cigarettes is $5.00. So if he smokes a pack a day, it costs us at least $150 a month. That is a significant amount of money that can throw a budget out of whack.
Another example is gambling. We don’t gamble, but living in Las Vegas we have friends who do for recreational enjoyment. They do it to have fun and enjoy it. I’m not judging their level of gambling or if they should be doing it or not. But the bottom line is that they are spending the money on a consistent basis. Keep in mind these people are not the type of gamblers who blow their whole paycheck. It is for entertainment and part of their daily lives. So, if they are going to put $20 into the video poker machine when they go to lunch or dinner, they need to add it to their budget. Let’s say they do this three times a week. That’s $240 a month. If they are going to do it, why wouldn’t they budget for it?
The Budgeting Tips Takeaway
We tend to use a budget as a guide to how we feel we should live our lives rather than how we are really living. It can be a wake up call when you see and track what you are spending on bad habits and can be a motivator to make a change. But you have to be real with yourself when creating a budget or it won’t work. It is that simple. Start 2012 with a realistic budget and increase the odds on your success. That’s a bet I’d make.