Budgeting: big yawn or secret superpower?

When someone starts working with us, we usually ask them to complete a budget, or at least jot down their regular expenses. And almost every time, we get one of two reactions:

• A cheerful: “already got one, want me to send it over?”
• Or the far less enthusiastic: sigh, “okay… if I have to.”

So why do we keep asking, especially when half the room slumps at the thought?

Because budgeting is the foundation of financial planning. And here’s why it matters, especially if you’re thinking ahead to retirement or other big life goals.

Why bother with a budget? Four powerful reasons

1. It shapes your future lifestyle.

What you spend now helps us estimate what you might spend later, especially in retirement. Sure, some costs (like the mortgage) may disappear, but others (like travel or healthcare) might increase. A clear budget helps us plan more accurately.

2. It shows your ‘spare’ capacity.

Even if it’s only theoretical, knowing what you have left each month helps us see what could go toward saving or investing for your future.

3. It reveals spending patterns you might want to change.

Seeing everything laid out in black and white can be eye-opening. You might spot opportunities to adjust spending to hit your goals faster.

4. It helps align your spending with your values.

Are you spending mindfully, or just going through the motions? A budget helps uncover whether your money is going toward what actually matters to you, or if it’s being siphoned off by habit, convenience, or even just ‘keeping up with the Joneses’.

The surprising feedback

Almost every client who’s reluctantly completed a budget ends up saying something like:

• “It took a bit of effort, but it was surprisingly helpful, and actually quite revealing.”

That’s why we do it. Whether you’re dreaming about early retirement, helping your kids through university, or planning a big life change, it all starts with knowing where your money goes today.

So how do you actually do it?

The good news: there’s no single ‘right’ way.

• Spreadsheets work well for many (we’ve got one we share with clients).
• Banking apps, especially those from online ‘challenger’ banks, can categorise spending for you automatically.
• Budgeting apps, both free and paid, are increasingly popular. One client told us her paid-for app “completely revolutionised how I spend.”

It’s not the method that matters, it’s taking the time to do it and making it a habit. Start with a one-time review and then keep checking in every few months.

Final thought

Sure, budgeting might not feel thrilling, but it is empowering. It puts you in control, gives you clarity, and unlocks the ability to plan a future you’re genuinely excited about.

So maybe budgeting isn’t a big yawn after all.

Maybe it’s your secret financial superpower.

Richard Wadsworth is a financial planner with over 30 years of experience, who specialises in working with busy individuals and families looking ahead to retirement and women in Scotland going through separation and divorce. You can reach him on mobile: 07880 034246 or email: richardwadsworth@carbonfinancial.co.uk

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action. Tax and Estate Planning Services are not regulated by the Financial Conduct Authority. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.