Disadvantages of Keeping a Budget

Some people find that sticking to a budget limits their fun activities, or even forces them to go on a spending freeze. Budgeting means having limits for your discretionary spending, including food, entertainment, and transportation. This means saying no to new things you want or need until you can afford them.


Inflexibility is a problem when keeping a budget. Many costs are inflexible and cannot be avoided in the short term. In contrast, flexible costs are the ones the individual can decide to avoid depending on their circumstances. For example, if an individual wants to save money on a monthly car payment, he or she may decide to not buy a new car.

Unlike flexible expenses, inflexible costs cannot be changed or eliminated by the individual. These costs often result from long-term or contractual obligations. As such, lenders are hesitant to extend credit to individuals with too many of these expenses. Expenses that are inflexible are typically fixed payments or expenses that cannot be avoided, such as mortgages, car payments, alimony or child support. Other types of inflexible expenses are insurance, rent, and interest.

Expenses that are inflexible are more expensive than flexible costs. This is because flexible expenses can be shifted around. For example, subscription services can be more expensive if they require a monthly commitment, but they have much more flexibility than inflexible ones. The most important advantage of flexible costs is that they can be adapted to change in the real world. This is important in a budget, as it gives management the ability to react to changes in the business environment and seize the opportunity when they arise.


Keeping a budget can be a difficult task for individuals with ADHD. It requires making predictions about future income and expenditures. The power of a budget lies in comparing these predictions with the actual amounts. Keeping a budget allows you to monitor your spending and identify any problems.