The Dangers of Budgeting Excuses

There are so many budgeting excuses out there that, as a health professional in Canada, you will probably recognize at least a few of them. The problem is that falling into the endless trap of making excuses will ultimately lead to poor financial health in your practice. Failure to have a spending plan can lead to money problems, spending money impulsively, debt, and a nasty dent in your bank account.

If you've been procrastinating about getting your budget in order, then this blog is definitely for you! Keep reading as we unpack some of the most common budgeting excuses, explain why they are holding you back from financial success, and offer practical advice on how to create a personal budget to help you reach your financial goals and spend money the smart way.

Short Summary

Here's what we will look at in this blog about budgeting transformations:

Excuse 1: "I'm making enough money; I don't need a budget"
Excuse 2: "I'm just a contractor; I don't need a budget"
Excuse 3: "I've only been in practice for 3 months; why would I need a budget?"
Excuse 4: "I don't have time to build a budget"
Excuse 5: "I don't even have time for bookkeeping; how will I have time for budgeting?"
Excuse 6: "Budgets are an annual thing, and that’s the only time you look at it”
The importance of overcoming budgeting excuses

Before we get into the nitty-gritty, be sure to download the FREE budgeting checklist we've prepared for you at Tyagi Group. This will help you start budgeting the right way!

Excuse 1: "I'm Making Enough Money; I Don't Need A Budget"

A common myth is that if you earn enough money with a steady cash flow, you don't need a budget. However, with consistent excessive spending habits, you could soon be in the danger zone! If you're a successful health professional in Canada, your appointment book is full, and your bills are paid. That's great, but you need to understand the importance of budgeting for it to stay that way.

A budget will help you plan where your money will go each month so that you're always prepared for unexpected costs, such as vehicle maintenance or changes in interest rates affecting your monthly mortgage payment. It could also ensure that you are able to save money each month, and invest in your future financial sustainability while having the freedom to splurge occasionally.

Excuse 2: "I'm Just A Contractor; I Don't Need A Budget"

Contractors need budgets as much as anyone. It's totally understandable that an irregular income may make budgeting harder. The trick is to not give up but rather to employ different strategies that work for you. Time-efficient budgeting for contractors can actually ease your stress and help you feel more confident about earning and saving more money.

Easy Budgeting For Contractors

Calculate your average monthly income after tax.
Write down your fixed expenses each month.
Set up a savings account and use it for low-income months.
Project high-income months and write down how much you will save in those months.
Allocate a percentage of your income for leisure spending and stick to it.
If you anticipate a low-income period, such as the Christmas holidays, put a plan in place to diversify your income to help you meet expenses.

Excuse 3: "I've Only Been In Practice For 3 Months; Why Would I Need A Budget?"

As a new health professional, you may feel that a budget is premature. You're still waiting to see how your business performs and exactly how much money you will earn. You may not be thinking of an emergency fund or retirement just yet.

The truth is that now is the perfect time to start a budget, and the earlier you begin putting money into your emergency fund, the quicker it will grow. Early-stage budgeting for health professionals will help you settle your student debts faster than you hoped and avoid further debt. It will also highlight any bad spending habits and problems early enough to rectify them before they become too serious.

Check out this budgeting course for new health professionals from Tyagi Group.

Excuse 4: "I don't have Time to Build a Budget"

As accounting professionals, this is one excuse we hear far too often at Tyagi Group. Many of our clients seek our help with new budgets, saying that they don't have time to do it on their own. It’s true, budgeting does take time, but with the right tools, you can benefit from time-efficient budgeting. And if it's going to save you from debt and allow you to enjoy your money, the time is definitely worth it!

How to Implement Time-Efficient Budgeting As A Busy Health Professional

Use online budgeting tools such as Mint or PocketSmith (remember that apps only work well if you methodically enter your spending and savings).
Download Tyagi Group's free budgeting checklist and budgeting template.
Schedule a strategy call with us to discuss smart budgeting within your timeframe
Once you find a tool that works for you, stick with it! With practice, you will become faster at budgeting, and it will become more fun and less of a chore.

Excuse 5: "I Don't Even Have Time for Bookkeeping; How Will I Have Time for Budgeting?"

Health professionals are busy people. Your work matters to your patients more than you realize. So why should you sacrifice the quality of your health services to focus your attention on bookkeeping and budgeting, right? With the right approach, you don't have to.

Without a budget, you could end up in debt with too many expenses, too little savings, and not much of a health practice left to help those who need your services. By integrating bookkeeping and budgeting, you can save time, energy and resources for better financial outcomes.

Tyagi Group can assist you with integrating bookkeeping and budgeting; plus, we've got a budgeting course that can teach you all the business basics to get you on your feet and closer to your financial goals.

Excuse 6: "Budgets Are An Annual Thing, And That’s The Only Time You Look At It”

This is another common myth that could not be further from the truth. If you're guilty of making this common excuse, it may be the single reason why your budget is not working for you.

To really take control of your expenses and feel a sense of freedom around your money, you need a regular budget review to help you stay on track. Instead of looking at your budget plan at the beginning or end of the year, a better idea would be to keep it nearby for easy access, so it can be reviewed each month as you encounter new expenses.

A regular budget review is an excellent way to be aware of all the money going in and out of your business to give you clarity on how close you are to reaching your financial goals.

The Importance of Overcoming Budgeting Excuses

Overcoming these common budgeting excuses is crucial so that you can create a better financial situation for your health practice. Once you do this and start budgeting, you will be able to take back control over your spending, spend money intentionally, pay bills on time, start an emergency fund, manage unexpected expenses, and identify how much extra income you need to earn to reach your money goals.

The Bottom Line

The dangers of budgeting excuses are many, including falling into debt, overspending and long-term money problems.
Businesses with sufficient cash flow still need to budget to remain sustainable.
There are tools and methods that make budgeting for contractors easier, even with a fluctuating paycheck.
Early-stage budgeting helps new health professionals identify problems early and get a head start with saving.
Budgeting apps and templates allow for time-efficient budgeting.
Integrating budgeting with bookkeeping can save time and money.

Break free of these common myths and excuses around budget planning! Tyagi Group is here to help you with the Business Foundations Budgeting Online Course for Canadian Health Professionals. Your success is just a click away!