It's hard to find general truth when it comes to how people keep track of their money.
For a long time, I didn't understand either because I thought everyone was like me always roughly aware of the balances of all their current accounts and with enough reserve that a moderate unplanned event is insignificant but that's not the case.
Some people have a terrible grasp of how much money they currently have. Some work on so tight a budget that even a small deviation triggers a lot of undesirable effets - banks are actually awful for that because they really milk their customers with resource issue.
That's why budgeting is so effective for some people. If your budget is killed by a few overdraft events, just avoiding that will give you a lot of breathing room.
For a long time, I didn't understand either because I thought everyone was like me always roughly aware of the balances of all their current accounts and with enough reserve that a moderate unplanned event is insignificant but that's not the case.
Some people have a terrible grasp of how much money they currently have. Some work on so tight a budget that even a small deviation triggers a lot of undesirable effets - banks are actually awful for that because they really milk their customers with resource issue.
That's why budgeting is so effective for some people. If your budget is killed by a few overdraft events, just avoiding that will give you a lot of breathing room.