💡 Budgeting is one of the most Googled financial terms, but also one of the most abandoned resolutions.
Everyone starts with energy. Few stay with discipline. Most quietly quit by Week 2.
But why?
Why is it that despite knowing we should budget, we don’t?
That’s exactly what we’ll unpack today — in real talk, Indian life context, and with solutions that stick.
Why Budgeting Sounds Good but Fails Fast
Let’s be honest. “Budgeting” feels like:
- Cutting down coffee ☕
- Cancelling Netflix
- Feeling guilty for buying pani puri on a Sunday
No one likes that energy.
We think budgeting = restriction. But the truth is…
Most people don’t fail at budgeting because they lack money. They fail because they use systems that don’t fit their lifestyle.
🚫 The 5 Common Reasons People Fail at Budgeting
❌ 1. They Overcomplicate It
Spreadsheets with 28 categories. Colour-coded apps. Daily logging.
It starts to feel like managing a company’s accounts, not your own life.
Budgeting shouldn’t feel like homework. It should feel like clarity.
❌ 2. They Budget Based on Ideal Life, Not Real Life
“From now, I’ll eat out only once a month.” “My fuel cost will be ₹1000 max.” “I’ll save ₹30,000 every month.”
🙄 This is budgeting based on motivation — not behaviour.
When reality hits, you overspend, feel guilty, and drop the whole thing.
❌ 3. They Track After, Not Before
Most people react to expenses. “Let’s see how much I spent last month.”
That’s called expense tracking, not budgeting.
Budgeting is a plan for your money before the month starts, not a post-mortem.
❌ 4. They Don’t Include Joy
Here’s a controversial truth:
Any budget that doesn’t include fun… will fail.
You need a guilt-free “fun allowance.” Even if it’s ₹1,000 a month for pani puri, chai, or a date night.
❌ 5. They Budget Alone in a Family System
Especially in Indian homes, we often budget individually, but spend money collectively — spouse, kids, parents, relatives.
If your partner doesn’t know the plan, If your family doesn’t align with goals…
You’ll constantly feel off-track.
💥 The Big Mindset Shift: Budgeting = Buying Freedom
Budgeting is not about punishment. It’s not about becoming “cheap.”
It’s about this:
“I tell my money where to go — instead of wondering where it went.”
Budgeting is like giving your money a job.
Every rupee should have a role:
- Pay rent? Great.
- Invest in SIPs? Even better.
- Sponsor mom’s medicine? Beautiful.
- Keep aside for Goa? Perfect.
Suddenly, money becomes your team. You’re the CEO. The rupees are your employees. You assign. They perform.
🧠 The Shiv Budgeting Method: Freedom Budget Blueprint™
Let’s simplify your life, Shiv-style.
Here’s a simple, 3-part budgeting system I use with my students:
✅ Step 1: Split Into 3 Broad Buckets
Forget 25 categories. Use this clean formula:
🧾 Essentials (50%)
- Rent, groceries, utilities, transport
- EMIs, school fees, basic expenses
💸 Wealth (30%)
- SIPs, savings, insurance premiums, debt payoff
- Retirement fund, investments
🎉 Joy & Growth (20%)
- Dining out, movies, hobbies, courses, gifts
- Vacations, fun, self-improvement
Why this works:
- Simplicity = sustainability
- It balances future planning and present living
- You don’t feel guilty about fun money (it’s built in)
✅ Step 2: Plan Monthly — Not Daily
Budgeting is like a diet.
If you track calories every 3 minutes, you’ll quit in 3 days.
Plan monthly. Check weekly. Track broadly.
Use tools like:
- A simple Google Sheet
- Free apps like Walnut, Buddy, or YNAB
- A whiteboard stuck on your fridge
✅ Step 3: Automate the Wealth Bucket
This is non-negotiable.
Set standing instructions so that:
- SIPs run automatically
- Savings move to another account
- Emergency fund grows without you “remembering”
Because discipline is best when it’s automated.
🔁 Budgeting as a Couple (or Family)
If you live with a spouse or parents — budgeting is not a solo game.
🫱🏽🫲🏽 Here’s how to align:
- Have a monthly 20-minute money talk (make chai, sit calmly)
- Decide roles — who tracks what
- Agree on big spends, limits, and goals
- Celebrate small wins together (like staying under budget)
Make it collaborative, not controlling.
🧘♂️ What Budgeting Actually Gives You
Let’s move beyond rupees.
What budgeting gives you is:
🌿 Peace — no more wondering “where did it all go?”
🤝 Trust — between you and your partner
🚀 Momentum — because small wins feel powerful
📊 Data — so you know exactly what to fix
💰 Surplus — that’s where true wealth begins
📍 Reflective Journal Prompts (Try Tonight)
Here’s how to go deeper.
Take 10 quiet minutes. Ask yourself:
- Where did most of my money go last month?
- What’s the one expense I regret the most?
- What does “enough” look like for me?
- If I had ₹1 lakh extra every month — what would I actually do?
- What money memory from childhood still shapes my spending?
These aren’t accounting questions. They’re healing ones.
🧱 Brick by Brick: How to Succeed at Budgeting
If you take away one thing from this blog, let it be this:
Budgeting is not a numbers game. It’s a habits game.
And habits are not built in one day. They’re built by showing up again and again.
✅ You’ll mess up a few months. ✅ You’ll overspend sometimes. ✅ You’ll forget to track for a week.
But don’t quit.
The goal is not perfect budgeting. The goal is peaceful progress.
And if you keep showing up, one habit at a time — You’ll become that person who doesn’t just earn money… But directs it like a leader.
✨ Final Word: Your Money Wants Leadership, Not Luck
You don’t need to be a finance expert.
You don’t need to say no to life.
You just need to own your money story.
Budgeting is your way of saying:
- I’m not afraid of clarity.
- I’m not running from numbers.
- I’m not chasing status. I’m choosing freedom.
Your ₹50,000/month can create more peace than someone earning ₹2 lakhs — if you lead it well.
So start. Start small. Start messy if you have to.
Because financial freedom doesn’t start with income.
It starts with intentional budgeting.