Let your priorities direct your dollars
Everything in life is a balancing act, and budgeting is no different.
Budgeting is restrictive. I’ll never get to do anything fun.
This is probably one of the most common myths I hear about budgeting. So, let me tell you now -- the point of budgeting is not to take away everything fun!
The purpose behind budgeting is really to make sure your money is being spent on what is most important to you, for this stage of your life. And that you are making those choices proactively, rather than just looking at where your money is being spent after the fact.
If you like your morning coffee at the local coffee shop and you are able to cover your fixed expenses each month, it can be ok to spend that money! As long as you have made that determination and have allocated dollars towards it, YOU are the one making the decision.
You are also allowed to make the opposite choice.
Perhaps you realize how much you spend each week on coffee and decide that it’s more important to put that money towards paying off your credit card debt right now.
This doesn’t mean you can’t have a freshly made Flat White with a fun design in the foam on top ever again. It just means that for you, at this point in your life, that is not what’s most important to you. And you have consciously made the decision to redirect your dollars elsewhere.
I do enjoy a good Flat White!
Maybe you decide to forego dining out for the next six months because you only have $1,000 left on a credit card and are ready to kick that debt to the curb.
The most important thing to remember about budgeting is that it is all about awareness and active decisions.
Because you are becoming aware of what you spend your money on, you can actively make decisions that direct your dollars towards what is most important to you.
Everything in life is a balancing act,
and budgeting is no different.
If you decide that taking a vacation next year is important, you are allowed to save for that and pay off debt.
If you decide that saving the money you’d spend on that vacation for the down payment on a house is more important, then that’s where your dollars should be directed.
Everyone’s situation is different so try not to compare yourselves to others. Plus, you probably don’t really know the intricate workings of your co-workers’ finances. Just because they are always out trying the newest restaurant, doesn’t mean they can actually afford it.
Focus on you, your situation, and your priorities.
Try taking some time to sit down and write out what is most important for you right now. Maybe look out a year. What would you like to accomplish in the next 12 months? What are the top one or two things that you’d most like to check off your list?
Remember, it doesn’t matter what I think or what your neighbor down the road thinks. (Although it’s probably wise to have a conversation with your spouse or partner so you aren’t working toward opposite goals!)
What is most important for you and your family, in this stage of your life?
That should direct where your extra dollars are being spent.
Looking for some help taking control of your money?
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