CA Nitin Kaushik took to X and wrote about a belief most people cling to: just make a budget and your money problems will be solved. He pointed out that while this idea feels reassuring, it is incomplete. Budgeting can help, but only if we understand what it cannot fix.
Budgeting does not prevent emotional spending
The first hard truth, according to him, is that budgeting does not stop emotional spending. Money often slips away when people are tired after work, frustrated by long commutes, lonely on weekends, or simply looking for a sense of reward. In those moments, numbers and spreadsheets lose their power. The issue is not poor maths skills. It is emotional behaviour.
What helps more than strict rules is awareness. Not just noting what was spent, but recognising when and why the spending happened. Certain moods, certain people, and certain late-night scrolling sessions turn the Buy Now button into a trap. A small pause can do more than a perfect budget. Waiting ten minutes, taking a short walk, making tea, or stepping away from the screen interrupts the cycle. Emotional spending is rarely eliminated. It is managed by breaking the moment.
Avoiding money
The second truth is equally uncomfortable. Budgeting fails when people avoid their money. Many create a budget once and then stop checking their accounts. Bills get auto-debited. Cards are swiped without thought. Money keeps moving, but awareness disappears. A budget only works when someone actively shows up.
CA Nitin Kaushik stressed that a simple weekly habit matters more than complex categories. 15 minutes is enough. Open your accounts. Scan recent transactions. Check upcoming bills. This isn’t about discipline or self-control. It is about presence.
Budget without goals
The third reality check is that a budget without goals quickly becomes restrictive. Without clarity on why money is being saved, cut, or adjusted, every rule feels like a punishment. Money needs direction to make sense. Large goals become manageable when broken down. An annual vision leads to quarterly focus, then monthly targets, and finally weekly actions. Once priorities are clear, whether that is stability, debt reduction, an emergency buffer, or breathing room, daily decisions feel lighter. There is less internal bargaining and less guilt.
Budgeting does not fix income gap
The fourth truth is one many people try to ignore. Budgeting does not fix an income gap. When expenses consistently exceed income, a budget simply reveals the reality. It does not create money out of thin air.
That exposure can feel uncomfortable, but it is necessary.
The real solutions lie elsewhere. Being honest about income, cutting lifestyle creep, reviewing silent subscriptions, restructuring EMIs, or slowly building an additional income stream. As CA Nitin Kaushik explained, budgeting is a mirror, not a salary hike.
Debt tracking
The fifth misconception is that tracking debt automatically reduces it. Making minimum payments keeps balances alive for years while interest works quietly in the background. Progress begins with a clear strategy.
Some people benefit from momentum by clearing smaller balances first. Others need to focus on maths by attacking high-interest loans aggressively. Either approach works when excess cash is directed intentionally, and progress is reviewed regularly. Debt doesn’t disappear by being watched. It disappears when it is actively guided.
What does budgeting offer?
So what does budgeting actually offer? Not instant wealth or perfection. It offers clarity instead of confusion, predictability instead of panic, and direction instead of guilt. It builds confidence to make better choices, even when those choices aren’t perfect. As CA Nitin Kaushik made clear, budgeting is not about control. It is about understanding money well enough so it stops controlling you.
