Why do people avoid having budgets?

[Ethan S.]

I'm just curious why most people avoid having budgets. I recommend to my buddy a budget app and he doesn't want one until later in life when he has more expenses. What's your thoughts on the idea of having a budget? Should you have one in college? 

[JD Martin]

You have a budget whether you realize it or not. It just might not be written down or recorded anywhere, but you still have a budget. Your revenue is going to be all of the income that you bring in or can access, even if some of it is loans. Your expenses are going to be all of the money that flies out of your wallet, whether planned or unplanned. 

You can either have a nice, tidy, controlled budget, or you can have a fly-by-the-seat-of-your-pants budget. Usually the latter eventually reach a point where expenses exceed revenue, at which point either more revenue must be procured or expenses have to go away (often the latter, through bankruptcy, chargeoff, whatever). If you want to ever have any assets, I recommend the former.