Budgeting Will Get You Everywhere

We plan for the things we want to buy, and of course for our regular expenses too. This means that we live on a budget (although I really like the name spending plan a whole lot better.)

And you know what? I like budgeting.

(No, I’m not crazy.)

Here’s what I like about it. First, budgeting isn’t about leaving yourself a whopping $5 a month for some kind of cheap fun while you deprive yourself the rest of the time and pinch every penny.

Instead, it’s about making sure the things you want to do actually happen. This includes the usual: a place to live, food to eat, transportation, clothes, savings, investing, and those random expenses that seem to pop up all too frequently.

But it also includes things like a new flat screen TV, trips to foreign countries, and eating out regularly or buying some new doo-dad just because.

Budgeting doesn’t mean giving up things, it means making sure you get the things that are important to you — with cash that you have on hand, not borrowed money that costs you a fortune in both cash and missed opportunities.

Budget, and your plans will take you to where you want to be.

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14 comments

  • Marcelina

    You are right. Budgeting works. There’s no magic to it. Got married 4 yrs ago. Have been printing a bi-weekly budget (made in Excel) ever since. We stick it on the fridge and stick to it! Have saved that way for a new car and 5 major trips. We have no debt except mortgage. Have 3 months emergency acct, healthy RRSP amounts, RESP for toddler and $6,000 in other savings. I’m only 30. Hubby is 32. Thanks to budgeting we have a great future ahead of us.

  • I think also another very important thing is that it will also show you if things are not going to plan.

    The number of people that I meet who say “gosh I did not know I was that deep in debt.”

    A good budget plan will help to keep you buoyant!

    Jackie – you are so right.

  • I love that fact that budgeting frees me to do the things I want to do. I budget for irregular spending as well by sending a small amount on a monthly basis to a separate savings account. Then when I see something I want I can get it and not worry about the monthly budget…as long as there are funds in the Fun account to get it.

    I used to worry about splurges but now when the splurge account has $300 in in from months of budgeting I can just let loose. Friends ask me how I can spend on things when I am on a budget…because they see budgeting as negative when it really is positive if done correctly.

  • I use budgeting as a way to meet my long term financial goals. I focus on purchases, and services to make the best choices.

  • Excellent description of budgeting and its power. I think one of the reasons many people see budgeting as negative is that they don’t start doing it until they’re in a financial bind and need to dig themselves out. If you start budgeting as a matter of your routine financial management and you align it to your personal values and your financial goals it becomes one of the tools with which you can build your financial future.

    • Good point. And if you start budgeting early on, you also end up with a lot more money because you’re not sending it to debt instead.

  • You are so right – budgeting is more about prioritizing what is important to you and leaving out all the waste. :-)

  • I love budgeting as well, and it really has made a difference in our lives. We’ve both quit our traditional office jobs and are doing what we really love to do, from home. We make less, and life is more uncertain, but we’re happier.