WHAT THE F*@! IS A BUDGET AND WHY DOES IT SCARE THE HELL OUT OF ME!?!
So full disclosure – I have been abusing my body for the past 3 years. Covid. Stress. Menopause…I’m a mess. A few weeks ago I started seeing a new doctor and the first thing she had me do was go on an elimination diet. I knew it was coming. For the weeks leading up to my appointment I made sure I indulged in all the things that I knew she’d make me give up – bread, cheese…booze. I was terrified. How was I going to get through my days full and satisfied? Meat, fats, and veggies – that is basically all I was allowed to eat.
Then the day came that she told me I needed to start. And man did I resist and procrastinate. For a week I found every excuse I could to delay starting – just one more day. But I was still feeling awful; my body hated something (everything?) that I was putting into it and doing to it. So, feeling like crap finally won over my fear of missing my favorite foods, and I finally began the dreaded diet.
I’m just shy of two weeks in as I’m writing this and want to know what…I feel AMAZING!?! Not only am I thinking clearer and less stressed, but my body actually likes me again!
All that fear. All that procrastination. All that time. Wasted! How much time did I spend feeling like garbage because I was worried about not having cheese, chocolate, or focaccia.
That brings me to you. How many times have you heard “if you just make and follow a budget, you’ll get yourself out of this hole”. Its easy, right? Go back and read my rant about how “easy” social media is for me…aka it’s NOT.
But like me and my diet, 90% of what’s holding you back is not that you don’t know how to do this; it’s that you’re scared what you’re going to have to give up. It’s the biggest reason we fail at so many of our New Year’s resolutions – we can’t handle letting go, even if it’s not good for us. What is it for you? Skip the Dishes? Movies? Clothes? Spa Days? Or even basics like choosing Chapmans vs. Ben & Jerry’s?
My serious FOMO of food/drinks kept me from feeling so much better for all these years, and I don’t want you to be debilitated by this fear when it comes to budgets.
So, let’s go through the basics of budgets...
Ultimately all a budget is, is a plan. And like any plan, its only good if you use it.
When creating a budget, I like to start with where I am. It’s all fine and dandy to say you’re only going to spend $500 a month on groceries, but if the reality is that you’re currently spending $1500, that might not be so easy.
I like looking back at the past 3 months. I go through bank accounts and credit card statements and add up how much I spent and on what. The average of those totals gives me an idea of what our current “non-budget” spending is.
And then I get to work…How much money do I bring in? Does it cover the current spending? Am I carrying debt? Building any retirement savings? Any savings at all?
You set your goals and priorities and work back from there. If you want to pay off debt but are currently spending everything that you earn, you’ve got two choices:
1. Find a way to make more money; or
2. Cut your spending.
Personally, I find option 2 the easier/quicker solution. It’s way easier to skip the daily Starbucks than it is to come up with an extra $200 a month – get yourself a $40 coffee maker and put that Starbucks money towards that debt instead!
Once you get everything balanced then it’s time to make it work for you. And that’s really the secret – Monitor. Track. Adjust
MONITOR
You actually have to pay attention to what and how much you’re spending. And if you get to your budget, you need the discipline to STOP spending. You need to take the time to actually take your goal money and put it where you planned – pay the debt, buy the RRSP, man – even save for that dream vacation!
TRACK
I pull out my budget (yes, it’s a spreadsheet) twice a month – pay my bills, record the money in and out, and move “goal” money to where it needs to be. I make sure there’s enough money in the account to cover things until the next time I’m in there. And that’s it. Rinse and repeat. Around the 1st and the 15th each month; every month. If I miss a check in, bills don’t get paid and auto payments might bounce. I don’t – can’t miss a check in.
ADJUST
Yes Adjust. Budgets are NOT set in stone. No one’s going to come and scold you for overspending in one area or not making that debt payment: it’s all you. And sometimes what looks good on paper is just NOT practical. So rather than just giving up and throwing out your plan, adjust it. Figure out what IS practical for you. Maybe your spending is as tight as its going to get so you need to inject more money each month – are you going to get (another) job? Another client? Find some grant or subsidy?
Make it work for YOU. Its honestly the only way a budget is going to work.
Just don’t be a baby about it…if I can give up cheese, bread, and beer (and we own a brewery!!) for a month, you can definitely make some sacrifices to get you where you need to be financially. It’s not forever. It’s just for now.
Finally, please just remember: it’s just numbers.
1 + 1 = 2
With a budget, it just becomes
1 – 1 = 0
All your doing is making it balance to zero. Using every dollar of your income and giving it a purpose.
Take your [GIANT -haha] wheel of cheese and start cutting it up – some for your rent; some for your utilities, phone & internet; some for having fun and eating; and some for savings and getting you out of debt. Just divi it up till there’s nothing left and BOOM – you’ve made a budget.
I promise it IS that easy.