Less than 1% of Americans have a Written Budget and Stick to It

No wonder so many people run out of money before they run out of month!  According to Jesse Mecham, the founder of a very affordable personal budgeting software called "You Need a Budget", only about one half of one percent of Americans have a formal written budget and stick to it.

My initial reaction was, how can that be? We have millions of Americans who work with money and finances on a daily basis, run their businesses on a tight budget or even help others with their finances. The truth is that most people have great difficulty sitting down to face their own personal financial realities and see a budget as something that can only restrain them from living life as they wish. Another truth is that most of us do not live life as we wish, so what is the risk of creating a budget?

While it is true that there is discipline and time involved in establishing a budget and building a financial pad, buffer or emergency fund, the time involved is minimal and could easily be found by eliminating one stupid TV show from weekly viewing. This is no big deal since "average" Americans now watch 151 hours of TV per month. It is hard for me to imagine how much financial pain and suffering could be avoided if people would only give up 10% of their TV viewing time (15.1 hours per month) to organize their personal finances and plan for retirement. Given the financial difficulties many face due to the loss of home equity or even the loss of a home, planning for the future has become more important than ever.

If you are healthy and employed, not knowing where things stand financially probably creates most of the stress in your life. There is a simple way to reduce stress, eliminate arguments over money, educate your children to act responsibly with money etc. and that is to create and live within a budget and show those you love how to do the same. It is a fundamental step on the path to sustained abundance.

Listen to the interview I recorded with Jesse Mecham, the creator of YNAB, (a personal budgeting software) as we talk about his concept and the benefits of his product. Click on the forward arrow to start the recording.