The How and Why of Budgeting, Part II

Thereupon I realized that in order for someone lacking in budgeting values to consistently adhere to a budget, perhaps someone who wasn’t brought up with those values, they have to have an incentive to do so.  It should be something tangible they’ll receive every so often, or that they can look forward to receiving. Since most people associate budgeting with making sacrifices, having an incentive or reward would mitigate the sacrifice. It must be emphasized however, that the reward must be for good performance, and not be the goal of the budget. You can’t simply decide to spend lavishly just because you earned your reward. You have to stay within the budget restrictions until your goals are met. You’re not allowed to cheat, either, and claim the reward without achieving the budgetary objectives. That’s why it may help if two or more people share responsibility for staying within the budget, such as a husband and wife or two employees. It would be best done, nevertheless, on the honor system because, as confirmed by my CPA friend, self-discipline goes a long way towards helping an individual or individuals or an organization stay within a budget successfully, and become more financially responsible.

What can the reward be? It can be nearly anything within the bounds of good taste. Obviously, a small item like an ice cream sundae is fairly easy to materialize for most of us, but will need to be given repeatedly to continue to motivate the budgeter, while a larger item like a vacation trip will most likely be more expensive but will have more incentive value. The prospect of receiving a reward like a trip to France, Hawaii or Tahiti would make it easier and more pleasant for many people to live within a budget and achieve their other financial goals. This can be done by an organization on a budget, too: a manager with budget responsibility can be given an incentive as a reward for complying with the budget, or more than one employee, director, etc. can receive incentives for their individual roles in helping to meet budgetary objectives.

Author: Gary Krupa

I'm a CPA, married, with two cats, I play the accordion and speak French. I live in Sedona, Arizona in the Village of Oak Creek. I grew up in New York, and also lived in Southern California, the North Bay region of the San Francisco Bay area, and elsewhere in Northern Arizona. While in college, I introduced to the Accounting Society a corporate version of Monopoly called "Corporate Monopoly". Visit my custom website at http://garykrupacpa.com for very informative, interesting and up-to-date information about how to improve the state of your finances! It's where political correctness is kept to a minimum and financial helpfulness to a maximum.

9 thoughts on “The How and Why of Budgeting, Part II”

  1. We are a bunch of volunteers and opening a brand new scheme in our community. Your website provided us with helpful information to work on. Yo;7v821&u#e performed an impressive task and our entire neighborhood might be thankful to you.

  2. Hi there would you mind letting me know which hosting company
    you’re utilizing? I’ve loaded your blog in 3 completely different web
    browsers and I must say this blog loads a lot quicker then most.
    Can you recommend a good internet hosting provider
    at a fair price? Thank you, I appreciate it!

  3. Thanks for one’s marvelous posting! I seriously enjoyed reading it, you could
    be a great author. I will be sure to bookmark your blog and definitely will come back from now on. I want to encourage you continue your great job,
    have a nice morning!

  4. Howdy I am so excited I found your website, I really found you by
    error, while I was browsing on Bing for something else, Regardless I am here now and would
    just like to say cheers for a marvelous post and a all round enjoyable blog (I
    also love the theme/design), I don’t have time to look over it
    all at the minute but I have bookmarked it and also included your
    RSS feeds, so when I have time I will be back to read more, Please
    do keep up the excellent work.

  5. Howdy would you mind letting me know which hosting company
    you’re utilizing? I’ve loaded your blog in 3 completely
    different browsers and I must say this blog loads a lot faster then most.
    Can you recommend a good web hosting provider at a honest price?
    Thank you, I appreciate it!

  6. Hmm it appears like your blog ate my first comment (it was extremely long) so I
    guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the whole thing.
    Do you have any tips for newbie blog writers?
    I’d certainly appreciate it.

Your thoughts?

Your email address will not be published. Required fields are marked *