Some people view budgeting through a scarcity mindset. I find this interesting, because to me it is exactly the opposite. Sure, sometimes my husband and I can be a little bit tight (from other people’s perspectives), but that is only because we know what our priorities are and simply don’t enjoy wasting money. Budgeting is what makes discretionary spending possible without any guilt or doubt. And being able to freely spend your money on what is important to you is a great feeling.
I do understand that having a budget can limit your freedom to make decisions on the spot. And this can be quite difficult for some people. After all, you might want to make an impulsive purchase from time to time, or go out for coffee without checking your budget first. I get that. But if you’re reading this blog, hopefully you realise that budgeting is an important tool to help you achieve your goals. And I suggest you change your mindset to stop feeling limited and start having fun with your budget.
Look at budgeting like a fun game
Every pay check I receive is the start of a new game. I have to make sure that everything fits, while making sure that my biggest goals are being taken care of. How do I do that? By having a long-term vision and not budgeting for each week. This post will give you a really good idea of how to budget the right way.
Having a long term vision, sometimes I budget only a small amount per paycheck for an expense that is coming up in a few months. This means my budget could look very different from yours. It does’t matter. What matters is that this upcoming expense is being taken care of, and I won’t need to worry about it later. Remember, yearly bills or things that you only pay for every few months are NOT unexpected expenses. They must be planned for, and you should be saving up for them. In whatever way that works for you.
Pay for your biggest goals first and enjoy the feeling
If you’re into personal finance, you have probably heard this before. Pay yourself first. Pay for your biggest goals first. This will be different for each person, depending on your most important goals. For some of you it might be buying a home, travelling or paying off debt. I ALWAYS recommend that financial freedom should be at the top of the list. After all, you just never know what tomorrow might bring, and it is a great feeling knowing that no matter what happens you will be okay.
Make sure you account for your most important goals, keeping in mind a timeline as well. When do you realistically expect your goals to be achieved? Is there any way you could save more money towards achieving them? You simply can’t underestimate the feeling of knowing that you are on track to achieve the things that are most important to you.
Begin to dislike waste
Once you start to watch where every dollar is going, you are going to really dislike seeing any go to waste. Personally, this is often my feeling when I spend on something that I haven’t budgeted for (unless it is an emergency expense, which is accounted for). That is because you will see that something that is not that important is actually taking dollars away from your true priorities.
Waste can look like extra coffees that you didn’t plan for and that didn’t really fall into an important category . It can look like paying extra for data that you never use on your phone, or unnecessarily paying extra for your power bill. You need to look at your budget and then decide what waste looks like to you. You will see that budgeting will become more and more fun once you begin to dislike waste and start to optimise more your expenses.
Enjoy each small victory
Especially when you’re just starting to organise your finances, make sure to celebrate each small victory. This might be simply making ends meet that week, or it might be knowing exactly where each dollar is going. It might even be having that little extra money to go out with friends without the guilt, because you know that it is important to you and all part of your plan. Enjoy this feeling of being in control and having choices.
I personally really enjoy knowing where each cent is going and putting money towards investments. Seeing that after all expenses have been paid for my spreadsheet matches my bank account is certainly a small victory for me. Another one is seeing my investments grow.
What are some small victories that you would like to enjoy? What are your challenges with budgeting? Would love to know what you think in the comments below 🙂