Many Americans have a rocky relationship with traditional budgets.
It’d be easy to blame a lack of financial literacy, but is it really that simple?
John Crane believes the answer is pretty straightforward.
“Traditional budgets fail people for lots of reasons,” the founder of Crane Financial LLC and author of The One-Number Budget said. “The primary reason they fail is it’s too much work.”
Truth be told, the average person isn’t a financial expert. And multiple accounts and obligations can feel overwhelming.
“It’s just too much to keep up with,” John said. “And so, people don’t do it.”
The traditional budget failure is a big player in the silent epidemic of financial stress.
John argues that a common mistake people make is trying to plan financially on a micro level rather than looking at the big picture.
“The discussion has to start with a lifetime perspective. What are they really working towards? What are they trying to accomplish?”
By building a budgeting roadmap for life rather than the next month, you can set yourself on the path to financial freedom.
Key Insights and Takeaways