01 Jul 5 reasons your budget isn’t boring
It’s the start of a new financial year and a time where just about everyone in the modern world will think and talk about their finances. Whether you keep your receipts in a shoebox, or you have your bank account linked with bookkeeping software, the one thing you should know is what you budget looks like. Do you have a budget? If so, do you stick to it? Chances are you’re reading this thinking ‘errrrr… no.’ And that is perfectly ok! Because today I’m going to show you why a budget is not boring, all the COOL things you can do with a budget, and even help you get started on a shiny new budget for the new financial year. You are welcome, my friend!
A budget is a plan to spend money
Seriously, think about it! When you put together a budget, you plan on how you’re going to spend your cash – what could be more fun than that? Want to go on holidays? Put it in the budget. Want to buy you and your pets matching PJs? Put it in the budget. Want to stop getting pesky calls from people you owe money to? Put it in the budget! Make sense?
When we have a plan for the money to come in, and where it should be distributed, we get clarity on what we can say ‘yes’ to throughout the week or month. If you know you really want to knock over that debt before you book your next holiday, plan for it, and stick to the plan; you’ll be sipping cocktails by the sea on your tropical holiday in no time! PLUS, you’ll enjoy the warm gooey satisfaction of ticking off those goals. #likeaboss
A budget will show you where you’re being wasteful = more awareness!
“You don’t know what you don’t know” is a phrase that gets thrown around a lot, and it is true. When you don’t see what you’re doing with your money because it’s pretty much all cashless these days, it’s easy to be complacent about where your money is spent. Your budget is your financial magnifying glass, and it’s going to show you where the holes in your money bucket are. If you are aware of your spending habits, then you can adjust them to fit your goals. Small changes can make a huge difference in your budget. Take a hard look at the last few months’ worth of bank statements, find all the subscriptions, Uber eats, AfterPay and ‘spur of the moment’ purchases, then add them up. These are the things that will blow your budget quick smart! More awareness around your spending = mindful purchasing.
Maybe you’d like to try the 30 day ‘only buy what you truly need’ challenge? The basis is that you only buy food, pay rent, utilities etc (aka the necessities) and write everything else down on a list. If you still want/need something on your list in 30 days time then you can buy it, anything else would have been an impulse purchase.
A budget will help you get out of debt faster = more spare money!
Your budget is your ‘get out of debt fast’ card. Few things in this world are as effective in killing fun/creativity/motivation/general happiness as debt. On the other side of the coin, I can remember paying off all my credit cards and owing $0 to anyone… Best. Day. Ever! I even paid my cards off a little too much and thoroughly enjoyed receiving cheques from the banks instead – which took them years to process by the way, talk about irony.
Here’s the thing about interest, it accrues. So, if you are looking at whether to save money making 2% interest or pay off debt charging 13-20%; it should be a bit of a no brainer. We can totally save and pay off debts at the same time, but if we structure our money spending plan (aka budget) to pay off more debt, then we will be out of debt faster and save money on interest repayments. When we don’t waste money on avoidable interest repayments, we save money, which means we have more spare money for the things we want to do in life. Cheers to more spare money!
A budget will help you save faster = more cool things!
Now that your budget has helped you get out of debt, while putting away a little something for savings and investments, it’s time to save for the cool things in life. Do you like travel? Do you like vehicles that go fast? What about experiencing fine dining? Would you like to buy a home? More education? Equipment for your business? Personal development? Shoes in every colour? Well babe, this is where your budget will help you. Set the goal, put a $ amount on it, and work towards putting that cash away until you can say ‘Yes’ to whatever it is your heart desires.
A budget will show you how you can giveback to your community = better standard of living!
Even if making more money isn’t your primary motivation – contributing to your community (whether that’s at home, your social groups or in the wider sense) likely is. The fact of the matter is, the more you have, the more you can do and give for others. Your budget will show you where you can set up regular donations to your favourite local charities, perhaps donate food parcels to the people supporting the homeless or needy. The possibilities are endless, but you need to know how far your budget stretches first.
“You don’t help anyone by being broke, so get your cute butt into gear, do a little work and put together your new budget asap!”
Lauren Bryant
I’ve even made it super easy for you with this free personal budget planner. All you have to do is choose the expense or income, how often that thing comes in or out of your account and fill in the blanks with the amount. This handy little tool will do the rest for you!
Happy New Financial Year, my friend!