The Dreaded B-Word
I talk about budgeting every single day. It’s a cornerstone of my coaching. It’s not because I especially love budgeting, but rather because of how important it is. It’s so important, in my perspective, that we need to get that right if we want to achieve the other financial goals in our life. People will often tell me they do great without a budget. That may be partially true, but they also don’t know what they don’t know. From my experience, they are driving a 5-speed transmission but only think it has 3 gears. 3rd gear feels really fast if you’ve never experienced a 4th or 5th gear. Something very powerful is unlocked when budgeting is done right.
I get it, the idea of budgeting is terrible. Most people (fairly) assume budgeting will suck the fun out of their life. That’s simply how budgeting is approached by the vast majority of our financial world. Stop spending, be responsible, cut back. We treat it as a crash diet. I think we’re missing the point. The objective of a budget isn’t to spend less, but rather to spend better. It’s a way to live out our values. So through the lens of “spend less”, yeah, I’d hate budgeting, too. But through the lens of “spend better”, budgeting gives us life. It’s a tangible way to execute our hopes, dreams, values, and principles.
Last week, one of my 6-year-olds approached me and asked, “Daddy, when is the end of the month?” When I asked him why, he responded, “because I want to go to Chuck-E-Cheese and thought we could put Chuck-E-Cheese in the new budget.” “Yeah, bud, let’s put it in the budget next month. That will be a lot of fun. What else should we put into the budget?”
Even at 6, he’s realizing this money stuff shouldn’t suck. It shouldn’t rip the fun and enjoyment out of life. It shouldn’t hinder our ability to live a quality life. He’s already learning that it’s a way that we can intentionally plan for fun things and live out our family’s values.
As this week begins, I encourage you to look at money through the lens of “spend better”, not “spend less.”