Budgets: To Do or Not!

August 12th, 2020 by Team Sammy

We are asking Sammy Rabbit friends to share their thinking on Budgets!

Do you champion budgets and budgeting? Or, do you believe budgets and budgeting don't work and are ineffective?

We welcome and invite you to join the discussion. Email us your thinking or post in the comment section of one of our social media posts of this blog. We'll reply to it and may feature you and your thinking in a follow up blog on this topic.

My Thoughts

Many bad mouth budgets. BUT, if you want a proven and predictable path to more financial security, stability and freedom - budget!

Here are some of your thoughts.

To Do - Budgets Work

Bobbi Olson | Budget Coach & Host of "CentsAble Chat" Podcast

I don't think budgeting is overrated at all. But there are so many different schools of thought on budgeting that it causes many to fail, or give up before they ever get started. Many see it as following a strict set of rules in order to make life better, but don't really think through what it means. I see budgeting as a set of tools that helps you accomplish a goal you're passionate about accomplishing. It should be helping you reach your goals, not telling you what your goals should be. Budgeting answers all the important questions. Can I afford it? How much do I need? How fast can I reach my goal? What do I need money for - today, tomorrow, next quarter, next year? Am I prepared? What if (fill in the blank...I get laid off, I get sick, my car breaks down, etc.)

More from Bobbi...

I agree! Budget seems to be a dirty word for many, but no matter what you call it, to me, it's a way to create and follow a plan - on my terms - that helps me reach my financial goals! It got me out of debt and took me from stressing about every bill or any dollar I spent, to sleeping very well at night, knowing I'm prepared for any emergency, I'm building retirement savings and I've got much more freedom to spend for fun! I find it EXCITING!!!!!

Not - Budgets Don't Work for Most People

Rob Bertman | CFA, CFP®, Founder - Family Budget Expert

"Yes, budgeting in the traditional sense is overrated, because it just doesn't work for most people (myself included). BUT, the absolutely most important personal finance item is focusing on having money left over at the end of the month. Without it, even the best financial plans won't work because there's no money to fund the goals. Step 1 isn't budgeting though. Step 1 is tracking spending to see where the money is going first."

MORE THINKING FROM FRIENDS AND SUPPORTERS OF SAMMY RABBIT AND CHAMPIONS OF FINANCIAL LITERACY!

Lionel Shipman | Financial Speaker, Author

The following is excerpt from Lionel's blog titled, Five Reasons Why Budgets Work.

"I have often wondered why budgeting seems to invoke tension in consumers. It is such a great tool in helping people and companies operating proficiently with money. However, it is often looked at as a tedious task for many people..."

Rishab Gosalia | Student, NYU Stern

The following is excerpt from Rishab's blog titled, 5 Best in Class Budgeting Tools.

"Here is good news for those who want to take charge of their financial independence. Excellent and easy to use budgeting tools are available online to help you budget effectively. Lots of them..."

Kaleb Paddock | CFP®, Ten Talents Financial Planning

The following is excerpt from Kaleb Paddock's Sammy Rabbit Childhood Money Memories interview.

Renick: Did your parents talk to and teach you about money as a child? Please share a little about your experience on the topic while growing up.

And, if you have children are you talking to and teaching them about money? Please share a little regarding this.

Paddock: I don’t recall talking too much about money as a young child but my parents had a budget and I don’t recall any “money crisis” moments. Today, my wife and I talk to our kids regularly about money. We use these bottle caps as family “currency” and our boys can earn bottle caps for various activities and then cash them in for a special toy they’ve been eyeing. Even as a 5 year-old, our son is realizing the value of working towards a goal and understanding this trade of money for stuff. We also are vocal about giving to others, being generous with our money, and trying to be a blessing to others using money.

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Budgets: To Do or Not!