A lot of people are under the impression that having a budget, or being able to create a budget, is all they need in order to get ahead of their finances. In reality, this is not the case for most of us. People fail with their finances because money is far more emotional than any budget might suggest.
It’s one thing to write out a budget, it’s another thing to stick to a budget for the long haul.I recently saw an interview where Mint.com founder, Aaron Patzer, claimed people will automatically adjust their behaviors for the better if they simply knew where they spent their money.
I know from firsthand experience that this is not usually the case. We may feel a bit shell-shocked when we first add up all the money we’ve spent at Starbucks, but those feelings dissipate over time. Before we know it, we are standing in line for a White Mocha Frappuccino once again.Financial guru, Dave Ramsey tells people that financial management involves 20% head knowledge and 80% behavioral change. He couldn’t be more on the money, so to speak.