[ad_1]
Never keep up with the trend of budgets? you’re not alone.
A new survey by The Penny Hoarder shows that slightly more than 55% of Americans do not use budgets to manage their hard-earned income.
A similar 56% of survey respondents said they did not know how much money they spent last month.
But there is a good case to track your money. A survey of 1,900 Americans conducted in May also found that those who kept their budgets were more likely to know how much they spent last month, and were less likely to say that they were spending on things that hindered their ability to pay bills.
Although following the budget can help people pay close attention to their spending and achieve financial goals, many Americans don’t think it is necessary at all. At least half (51%) of the respondents said that they did not make a budget, which is their reason.
19% said they did not have a budget because they did not have the time or energy, and another 19% attributed it to lack of organization. Only 6% of Americans say they don’t budget because they know they will overspend anyway.
These results did not particularly surprise Rebecca Wiggins, executive director of the Financial Advisory and Planning Education Association.
But she said that taking the time to make meaningful spending plans is not just for borrowers and lenders.
“It’s all about creating consistency in your life-linking your values to your money in a goal-driven plan that puts you in the driver’s seat,” Wiggins said.
How we budget: spreadsheets, apps, and proven methods
Among survey respondents who stated that they did follow the budget, approximately 40% used spreadsheets to manage their funds.Nearly 17% of budgeters say they use Zero-based budget, 14% used Budget app, 12% of fans Cash envelope method And 7% follow 50/30/20 method.
Among those who say they use budgeting applications to track their expenditures, mint Is the most popular (accounting for nearly 42% of people using budget apps). Per dollar Followed by (17%), followed by Mvelopes (8%), You need a budget or YNAB (4%) Finally, Personal capital (3%).
What else our spending reveals
Penny Hoarder asked extensively about people’s spending and budgeting habits. Obviously, we have some dirty little secrets. Other main findings of the survey:
- About a quarter said they have Hidden purchases from important people Others worry about how they will react.
- Nearly one-fifth admitted that they had spent the past two years shopping sparingly, which put pressure on their ability to pay bills.
- 59% of Americans consider themselves to be savers, while 41% of Americans consider themselves to be consumers.
- Half of Americans said they currently have no credit card debt. 22% of credit card debts are less than US$5,000, and about 8% of credit card balances are between US$5,000 and US$9,999.
Here is how to enter the budget-or not
The budget is not necessarily painful. Think of it this way: This is an opportunity for you to control the whereabouts of your funds.
You are the master of money. If your first budget does not serve you well, Scrap it and try a new one.
However, if you are half of the Americans who cannot participate in the budget, that does not necessarily mean that you are destined to struggle. Living a life beyond your means and automatically paying bills and savings deposits can help you achieve your financial responsibilities and goals without a formal system.
You can also simply consider Keep track of your expenses Instead of making a complete budget. In this way, you can keep track of how often you spend or how much you spend, and what you can cut back when you encounter difficulties.
With or without a budget, we all want to live the best financial life. Knowing how much money you make and where the hard-earned money goes will help you achieve your goals.
Method: Penny Hoarder used a Google survey to conduct a nationwide survey of people’s budget habits. From April 23, 2021 to May 18, 2021, a total of 1,938 people completed the survey. The survey responses are weighted so that each response represents the U.S. population.
Sponsor: Sesame Credit sponsored this survey, which was conducted independently by the editorial team of The Penny Hoarder.
Nicole Dow is the senior writer of The Penny Hoarder. Chris Zuppa, creator of multimedia content at The Penny Hoarder, contributed to this report.
[ad_2]
Source link
