What's Your "Why"?
Read time: 4 minutes.
Welcome to the Friday FinTips newsletter, where I provide tips to simplify how you manage money.
Having a budget helps you enjoy life more fully. It helps you afford that ice-cream (or whatever it is you really enjoy) without the constant worry about how you’re going to pay for it.
What I Did
Keeping a budget isn’t something you really want to do, even though deep down you know you probably should. There have been several times throughout my life where my situation encouraged me to keep a budget.
When I was 15, I really wanted a cell phone. My parents told me I not only had to pay for the phone itself, I also had to pay the bill each month. I got a job and started budgeting with the Envelope Method. I saved enough to buy the phone and kept budgeting so I’d have enough to pay that bill.
At 26, my expenses were more than my income. I was living at the beach in an apartment I couldn’t afford with student loans I couldn’t pay. I kept a VERY close eye on my budget. I ate PB&Js, kept the heat off during the winter, and went for walks as my “entertainment”.
About a month after I turned 31, I got married. We had different ideas on how to handle money, but ultimately came to common ground. We both wanted to still experience NYC while also saving for the future. There’s no way we’d be able to do that without a budget to put it all in perspective.
What You Can Do
Find your “why” (Why you need a budget).
Think about your goals (both short-term and long-term) and work backwards from there.
Write down your priorities and then figure out how to budget for them (we prioritize experiences over things and save throughout the year to afford them).
I hope you enjoyed this & I hope you have an amazing weekend! Talk soon.