Budgets Aren’t Just for Poor People!

It is a common misconception that budgets are only for poor people. In reality though, budgets are for everyone who wants to be able to hang onto their money and spend it on the things that are important to them. If you use money, a budget is a great tool that can help empower you and help your account balances grow.

In fact, not using a budget is a little bit like taking a road trip from New York to LA without a map, just hitting the road without any direction. You may know you need to head east, but who knows where you will end up. A budget helps you put your expenses in front of you so that you can prioritize. When you know what your goals are and where you want to end up financially, it can help you make everyday spending decisions much better and easier.

I know what you may be thinking now though. But budgeting is hard, I don’t know how to do it. Where do I even start? I’m glad you asked! To be totally honest with you, it does take a little time, but budgeting really isn’t that hard. In fact, if you know how to add and subtract, you can keep an accurate budget. All you have to do is put in the amounts you think you spend in each area, then keep track of your spending for a while to see what you really spend in each area so you can make changes wherever necessary.

Here at iMoneyCoach we often refer to a budget as a Spending Plan because that’s really what it is. You go to work to earn money which comes into your household. Your Spending Plan is what you are going to do with all of that money, including moving it to savings accounts (You may want to read more about the different types of savings accounts you need to have).

Bear in mind that budgeting is a process. It takes about 3-6 months of tracking your spending and making adjustments to get a budget that works. At iMoneyCoach we believe that you can make a budget that fits your life and will get you to your financial goals. Unlike many programs out there, we don’t believe you should just cut out every expense that is not absolutely necessary. We’ve seen too many people do that and end up in something similar to a mid-life crisis. Instead, you need to be sure to budget in rewards and treats for yourself, motivation to keep you going.

If you would like to learn more about how to create a budget that works you can always check out The Spending Plan Workbook (also available in ebook format!) or take our quick and easy online budgeting course at The iMoneyCoach University. And if you have any questions about budgeting or why you should have a spending plan, be sure to ask!

Tags: budget, spending plan