Most Georgians plan to start the new year off by creating a household budget – but they aren’t sure they’ll be able to stick to it.

A Georgia Credit Union Affiliates 2017 End-of-Year Consumer Survey found 76 percent of Georgians plan to have a budget in place to begin 2018. But 34 percent of respondents admitted they had “lots of room for improvement” when it came to sticking to that financial plan. Only 4 percent claimed to follow their budgets almost perfectly.

It’s not that budgeting stumps Georgians. Only 3.4 percent felt the task was too difficult for them to keep up with. So what’s leading most Georgians off their budgeting path? Most – 44 percent – claimed they just don’t have enough money to work with. Another 21 percent said they don’t have time to keep track of a budget.

Georgians aren’t alone in their budgeting strife. About 40 percent of Americans said they had a budget and kept close track of their spending this year.

But these budgeting shortcomings probably don’t have much to do with a lack of money. The average household in America makes $74,664 – well above the $18,871 a year limit that marks the poverty line for a family of three in the contiguous U.S. It’s also unlikely consumers are too busy to keep up with their budgets. Budgeting apps such as Wally and Mint can track spending and income with minimal attention from the user.

Financial planning and psychology experts believe the real reason people struggle with budgeting is psychological. Humans only have a finite amount of willpower. We can only restrict ourselves so long before we indulge. As in dieting, people tend to see budgeting as restrictive – and therefore can’t build up the motivation to stick with it.

That may be true in Georgia, where 10 percent of consumers admitted they have a hard time sticking to their budget because they “just don’t like it,” according to the GCUA survey.

Insider's Perspective:
Mark Nofi, marketing director at GEMC Federal Credit Union based in Tucker, Ga., said GEMC usually tries to change members’ outlooks on budgeting before touching their spending habits.

“Most people do not like the word ‘budget,’” Nofi said. “It sounds restrictive and negative. So, we introduce them to a ‘spending plan.’”

He said it’s important not to create “spending plans” that will become too complicated or exhausting to stick with.

“It takes weeks to form a new habit, and the same thing applies to tracking your income and expenses,” Nofi said. “In the beginning, keep it simple. If your spending plan is too complicated or restrictive, you will not stick to it.”

He said first focus on just one or two key areas.

“For example, it is hard to think of everything – but it is important to have a category for emergencies and to define what constitutes an emergency,” Nofi said. “Annual property tax bills or insurance premiums are not emergencies and can be budgeted for on a monthly basis. If your annual property tax bill is $3,600 a year, you need to save $300 a month to pay this bill.”

Nofi said small successes along the way will maintain motivation.

“For example, instead of saying, ‘I will never go out to lunch’ – meaning you will make your lunch every day – commit to bringing a healthy lunch twice a week,” Nofi said. “This allows you to enjoy going out some of the time without feeling so guilty.”

Tips for overcoming budgeting challenges:

• If you don’t feel you have enough money, you could be spending money unnecessarily. Search the corners of your budget for spending that isn’t serving you. Many financial blogs offer creative tips to help with this. Check out Lauren Greutman’s list of 13 Things You Should Never Pay For.

• If you don’t feel you have enough time, try finding a simple solution – like an app. Phone apps such as Wally and Mint track spending and income for you. They require minimum attention and time.

• If you don’t feel you can get motivated, set some financial goals and understand that your budget will help you reach them. Make sure they’re not just practical goals – but ones that excite you! Maybe you’re saving toward a retirement abroad or just planning to reward yourself with a new outfit if you manage to kick that expensive coffee habit for a month. Make yourself realize that budgeting frees up your money so that it works better for you!

• If you don’t feel confident, get some help! Apps, financial blog sites and spread sheets might help if you’re a little stuck in your budgeting process. But if you don’t even know where to start, consider seeking help from a trusted family member or a financial expert. Your local credit union is dedicated to financial literacy and can offer help and advice for your unique budget. For more information, visit http://www.asmarterchoice.org/.

• Get some help. Credit unions are member-owned and are dedicated solely to service. They can provide expert advice for couples whether they’re just starting out or need to get on better financial footing. To find a credit union near you, visit A Smarter Choice.