When you hear the word “budget,” what immediately comes to mind? Constricting? Limiting? No fun? Boring? Waste of time?
If you’re like most people, then you’ve thought something very similar whenever you’ve thought about putting together a budget. But what if I told you that a budget isn’t limiting? And that it isn’t a waste of time? What if I told you that it was the complete opposite?
What is a budget?
First, let’s understand the word budget. When you look up the definition, you’ll see that it reads “a plan coordinating resources and expenditures.” A similar term would be to call it a “financial blueprint.” So just like with building a house, a budget is simply a plan (or blueprint) for how to utilize your resources (aka your income).
When building a house, do you want your builder to follow the blueprints? Of course you do! But why? Because it’s your house and you decide how many bedrooms and bathrooms. You decide where the living room goes. And you decide just how big to make the master bedroom. You put the plan together, so you want your builder to follow that plan.
It’s exactly the same thing when it comes to a budget!
You have all the freedom to choose what goes into your budget. You get to choose what’s important to you and your family. You get to choose how much you set aside for groceries, utilities, subscription plans, etc. Are there some things more important than others? Absolutely. But you get to make that decision.
A budget is simply taking your income (your resources) and deciding where to spend it. And once you’ve decided where to spend your income, then you can relax and just follow your plan. You don’t have to worry “do I have enough for this?” You already know the answer beforehand.
“What if I allocate the wrong amounts? What if I underestimated how much for groceries and overestimated how much gas for the car?” Then you can adjust it for the next month! That’s the beautiful thing about a budget…you’re in control!
So let’s stop pretending a budget is a four letter word; something we should never say. And let’s start using it how it’s supposed to be used: as a blueprint to help you achieve your financial goals.
So if you need help with putting together a budget. Or you have some other financial goal you need assistance with, then don’t hesitate to reach out. Book a free consultation and let’s discuss a plan to help you achieve your goals.