Mar 3

Mar 3 Episode 57: Why Budgets Don’t Work

In this week’s episode of the #MoneyMagic podcast, I talk about why budgets don't work.

If you’re unable to minimize your spending despite doing everything that budgeting calls for, it’s not your fault, and you’re not alone. The truth is that budgets don’t work for most people and yet we keep getting taught to budget and when we fail to stick to a budget we feel ashamed, like there’s something wrong with us.

We're taught that we need self-discipline even when we know that it’s not working for us. Self-discipline and budgeting are all about willpower, and will power is a limited resource. We all get tired of constantly making decisions in a budgeting culture, and when this happens, our willpower runs dry. Your willpower is like a gatekeeper. Every time you’ve to stop yourself from spending physically, your willpower and decision faculties are eroded, resulting in financial decision-making fatigue.

Join the conversation with me, your host Vangile Makwakwa as I share a live class, “Why budgeting doesn’t work.”

I have been there, tried budgeting (in different countries) to improve my money spending habits and later got into a “give up game” to improve my finances and pay off my debts with no success. This never worked out for me despite depriving myself and giving up my favorite foods, restaurants, and transport to save more money. Instead, things were getting worse. Find out what works in changing spending habits and the alternative to a traditional budget.

Tune in!

Click play on the video below to watch.

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During this episode, you will learn about;

[02:03] Introduction into the episode

[04:39] Today’s topic: Why budget doesn’t work

[05:02] “You don’t have a problem in budgeting” My money habits in different countries

[09:20] “Giving up game” How I tried budgeting to pay off her debts

[16:23] What I did after discovering budgeting was not working

[19:30] Behavioral economics: Decision financial fatigue and willpower erosion

[26:44] Developing your capacity to use willpower by shifting your mindset

[28:40] How trauma eats away our will power, especially when we’re triggered

[29:42] Self-deprivation: A budget is not about self-denial

[36:54] Honoring your wants and doing the inner healing work

[40:47] Letting go of what you’ve been taught about money

[45:43] Bleeding money and how we get triggered

[49:19] What happens when your younger self hijack you in your finances

[51:12] Carrying trauma in the body and how if affects us

[54:11] Bank account challenge; Working with the body to integrate trauma in spending.

[59:56] How to access and register for the bank account challenge

[01:01:39] Answering questions from the #MoneyMagic viewers

[01:12:05] Ending the show and what to expect in the next Live show

Notable Quotes

We are taught that we need self-discipline even when we know that budgets don’t work
We’re human, and all sorts of things will interfere with rationality, and we won’t always behave logically
There is trauma in constantly denying your needs and being logical, and trauma erases our gut instinct
Our money set points are directly linked with the vows that we make to our parents