BLOG: Do People Really Budget?
By Lindsey Reed, Money Management Trainer at TISA
Most of us think we know how to budget, and at the start of the year, many of us are pumped up and keen to get organised. We sit down with our bank statements, scribble out income and expenses, maybe even plan to the penny… and then… life happens. The budget gets filed away, forgotten, or abandoned altogether.
But budgeting isn’t just about crunching numbers, it’s about intention and clarity. When you set a budget, you take control of your future.
So do people actually budget? The answer depends on where you look.
In last year’s Natwest Index, which surveyed 10,000 people across the UK, participants were asked, “Do you set a budget for yourself?” The results showed that nearly two in five UK adults (39%) do not budget at all. However, among 18–34-year-olds, 71% said they do budget. From my own experience delivering money management training, I haven’t quite seen this level of consistency which makes me wonder how many of those budgets are actively used and stuck to over time.
Many people claim to budget, but far fewer use their budgets as living tools. As personal finance author Robert Kiyosaki reminds us: “Financial freedom is available to those who learn about it and work for it.”
This gap between intention and action also shows up in goal-setting. According to research from the Investment Association, last year’s New Year resolutions revealed that over two-fifths (43%) of UK adults planned to set financial goals, just behind health and fitness resolutions (46%). It raises an interesting question: how many of those good intentions turned into lasting habits?
At a recent Money Management Workshop I ran, the difference between talking about budgeting and living it became vividly clear. When I asked who in the room actively budgets, a young woman raised her hand. Her eyes lit up as she shared how budgeting has been a game changer for her. She had made it simple, using an app linked to her bank account, and suddenly she could clearly see where her money was going. She realised how much was leaking away through knee-jerk spending, unplanned coffees, forgotten subscriptions, and impulse buys.
The benefits for her were clear and measurable. Seeing her spending patterns helped her cut waste and redirect money towards her goals that truly mattered. She wasn’t just tracking numbers, she was changing her behaviour.
And that’s the point. Budgeting isn’t about restriction. It’s about balance. A good budget allows space for essentials, future dreams, and yes – fun. As Barack Obama once said,
“A budget is more than just a series of numbers on a page. It is an embodiment of our values.”
As the young woman shared her experience, I could feel the room shift. People sat up straighter, leaned in, and listened. They wanted to know how to make budgeting work for them, not against them.
And that’s the key. The most effective budgets aren’t about deprivation. They’re about priorities and purpose. They help us understand our essential spending, plan for the future, and still leave room for the things that bring us joy.
Because in the end, budgeting isn’t just maths, it’s a mindset. And when you commit to it, it can transform not just your finances, but your confidence and peace of mind too.