It’s time to get yourself focused and start saving money or getting rid of debt, but do you find yourself struggling to sit down and make a budget? Does budgeting feel like going on a diet?
Why do most people hate budgeting?
If I am being honest, I really didn’t love to budget either when I started. However, it was the tool that changed the way I looked at money. No longer do I think budgeting is restrictive, but rather, it allows me to have freedom in spending.
Budgeting requires us to take action. And quite frankly, we, as humans, are naturally motivated by the things that come easily and naturally to us. You may believe that budgeting is hard, so just the thought of sitting down to write out a budget makes you cringe. I get it; it is hard to be inspired by personal finances, particularly if you don’t have a positive money mindset. However, creating a budget is an essential part of the process.
So how do you move from hating budgeting to rolling up your sleeves and getting it done?
What if I told you that the key to reframing your position on budgeting is to discover your “why” for moving toward financial stability?
Here is the fact of the matter, you won’t be able to move forward financially until you are able to get your money behavior to line up with your financial goals. And the way to do that is to begin budgeting.
I want to see you succeed at this, because I truly believe it is a critical step into changing your money story!
Let’s Go… Start Here!
#1 // Start With Small Goals and Actions
It is important to have a goal and to really pinpoint why you want to win with money. If you feel like it is time to get your finances in order, you will want to start with writing down 2-3 reasons that you are doing this.
Take out a journal and write the answers to these questions:
- What are the 2- 3 reasons that you want to do this?
- Am I doing this to get out of debt, go on a vacation, or perhaps make a career change?
- Do I want to build a savings account so that I can stop worrying about emergencies?
- Do I believe that I deserve to win with money?
Whatever your reasons are, get clear and write them down. You will need to be able to refer back to them in order to stay on course.
Once your goals are clearly defined, start with smaller actionable goals. Use phrases to define what can be clearly measured. For instance, most financial experts would like you to have 3-6 months of expenses set aside for emergencies. If that seems like a goal that is too far off for you, start with just focusing on building one month’s worth of expenses.
Do you want to pay off all of your debt? Ok, start with the lowest debt and focus really hard on knocking that one out first.
Small, actionable goals that are attainable will help you stay focused and motivated.
#2 // KEEP IT SIMPLE
The number one reason that clients tell me that they don’t budget is because they don’t like math. We don’t need to over complicate addition and subtraction. And, you don’t need fancy apps or spreadsheets, which tend to turn many people off from budgeting. I like to use pen and paper: scratch paper, a journal, a notebook. Just use what you have and simply write it out. If you are tech savvy, then download an app or create a spreadsheet. Do what works for you.
Start with figuring out what income is coming in (after taxes) and subtract what is going out (expenses). Super simple! Another pro-tip when you are just getting started is to use a Paycheck Budget.
The way a Paycheck Budget works is by looking at one paycheck and determining what bills have to be paid before you get paid again. For the next paycheck, you will determine what will need to be paid with that one and plan accordingly. This takes some of the stress out of planning for a whole month in advance.
Some of the major categories that you will use when looking at your expenses are:
- Food
- Housing
- Utilities
- Transportation
In that order.
#3 // GET COMFORTABLE WITH IMPERFECTION
I tell all of my newbie budgeters that a first-time budget is just an experiment. It usually takes at least 90 days to feel comfortable creating a budget. In those first few months, you are tweaking and massaging it so that it works for you and your family. Life happens, things will pop up, and expenses will change unexpectedly, so learn to adjust and go with the flow.
Too often, people put unnecessary pressure on themselves as they are learning to budget, which leads to a feeling of failure. When this happens, the budget goes out the window and you convince yourself that you aren’t good at it.
You will learn so much about yourself and how you use money in this process.
As you start the budgeting process, your values and priorities will reveal themselves. And here’s the neat part, many people don’t even know what their financial priorities are when they first begin. You will discover them and surprise yourself with the power and freedom that comes with making financial decisions for you and your family. Ultimately, budgets don’t have to be set in stone, just learn to adjust and don’t expect perfection.
Looking for financial guidance?
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#4 // GIVE YOURSELF SOME MONEY
Budgets can feel so restrictive because when starting, you tend to forget about all of the little ways you spend money. What I suggest is to look back at the previous 2-3 months to see where your money has been going to get a good sense of how you are spending money in your current season. The more precise you can get on the numbers, the easier the budgeting process will be.
Be sure to give yourself some of the money you make and don’t just make a budget to pay bills. How are you currently spending money on yourself? Are you treating yourself at a coffee shop daily, clothing, or gym memberships?
Be sure to build in your personal spending into the budget.
#5 // focus on the positives, not the sacrifices
The opportunity in creating a budget is to truly give you a level of financial freedom. Unfortunately, budgeting has gotten a bad rap because it feels much like a diet where you focus on all of the things you can’t have. Because isn’t it true, when we are told we can’t have the cupcake, all we want is the cupcake?
The goal here is not to take away all of the things you love or enjoy doing, but rather to build them into your budget each month. If you want to reach your financial goals faster, be willing to say “no” to things that you don’t necessarily need right now in order to say “yes” to the things you love!
#6 // it all comes back to your “why”
Those goals that you wrote down on day one will come into play because there will be days that you want something outside of your budget, or you will reach for the credit card to buy the thing that is calling your name. It is true that budgeting takes commitment and willpower, but the sacrifices won’t last forever. As you see growth toward your financial goals, you will gain confidence and the momentum will keep you motivated.
Budgeting can in fact be challenging, but also highly rewarding. It does take practice and consistency, but like all new skills, it takes some time to get good at it. Even people who are good at it, have challenges. My advice is to not be scared off by budgeting, but embrace it as a way to gain control and make your money behave.
I am wishing you great success on your first budget.
I want to encourage you to just start!
Meet the Author
Katie Gibbons is a homeschool mom and entrepreneur. By providing financial education and coaching, she helps women manage their money so they can gain clarity and peace of mind. She believes life is best lived by discovering the simple pleasures in the everyday. When she is not running her businesses or loving on her family, she is looking for any excuse to meet up with her girlfriends. She lives in Austin, Texas with her husband, James and two sons.
The Life of a Single Mom is a national, faith-based, nonprofit that exists to see that no single mom walks alone. To date, the organization has worked with hundreds of churches to start a single mom’s support group in cities throughout the U.S. and beyond, as well as having served hundreds of thousands of single mothers with a variety of programs. Offering a large array of books, curriculum, training materials, online instructional videos, podcasts, newsletters, life skills education, and more, TLSM is one of the largest single mom organizations in the U.S. The robust selection of single mom programs focus on empowering single moms to grow spiritually, emotionally, financially, and parentally through Single Mom University, Single Moms Across America, the National TLSM Single Moms Conference, boot camps, and a variety of other programs. For more information, visit www.thelifeofasinglemom.com.
