The Infamous “B” Word: Budgeting
Budgeting. Some feel like they can’t live their best life because of it, while others absolutely love the concept of it due to the perks. No matter which side of the spectrum of love/hate you fall on, I think it’s safe to say that we all want to get to a point of financial freedom. In my opinion, I believe budgeting is one of the key steps to getting there.
To put it simply, a budget is just a game plan for our money. It allows us to visually see where our money is going and puts things into perspective when trying to reach our financial goals. We have all made a game plan before; that term paper for school, the multiple assignments at work that are due on the same day or even that keto diet you tried. We came up with a step-by-step plan in order to complete the tasks. Why can’t we do the same with our money?
Budgeting has numerous benefits but for the sake of your time I’ll just focus on three of them.
Gives you control of your finances. You become the CEO of your finances and it allows you to allocate your funds how you want.
Helps you save better. Seeing your numbers laid out can help you make a conscious effort to save more.
Helps you cut back on aimless spending. Knowing where your money is going will decrease the number of times you ask yourself “when did i spend $20 at target?”
Now that we know the benefits, what’s next? Start developing a budget! Whether you want to use pen and paper, excel, or even a mobile application like Mint, just do it. It doesn’t have to be fancy. Start by writing down your monthly income and expenses to see where you stand at the end of each month. Some tips for a good budget are:
Make sure its realistic by setting goals
Make adjustments month over month
Don’t beat yourself up if you spend a little more than you actually budgeted for
No matter your age or income level, everybody should implement and stick to a budget. It will not only help you visualize your game plan, but help you reach your definition of financial freedom. As always, let’s continue the conversation below. Do you budget or plan to start budgeting? What is one thing that you budget for?
Holding you accountable,
DWM
P.S. - If you need help making a budget or need a better way of allocating your money, DWM is here to help. Swing by the products page to sign up for a personal session where we will go through my 40-30-20-10 allocation and your financial goals. Use promo code “BUDGET” to receive 15% off the Initial Personal Finance Session.