I was out last night and spent more than I had budgeted for. Thats ok, I adjusted another expected monthly spend to account for it.
For me, this is the whole point of managing a personal budget and having a frugal mindset that is focused on retiring earlier than society has planned for me. It means I don’t loose sight of the prize and I make adjustments as I go.
It doesn’t matter how much money you have or how much money you make… if you don’t know how to to keep it, budget with it, then it is all a pointless exercise.
I could have just accepted that I overspent last night and that would be it… I would run a deficit budget for the month and just call it as that.
Many people do that, it is lacking in accountability but hey, it is no biggie. Only you would know.
I choose to keep my eye on the prize.
With that mindset, I was also reflecting on why I was looking through my budget first thing this morning and working out how to make that adjustment to keep everything in line.
I realised it was because I was clear that if I was going to get to the prize then it was always going to be down to me and the decisions I make.
It is about taking ownership first and then digging deeper into some of the motivations for planning carefully what you do with your money. There are a lot of reasons for budgeting and any quick search of the internet will give you amazing tools, great inspirations and powerful success stories, but all of that is only reading material. Unless you convert into actions, take responsibility and keep the habit, then it is just words on a page.
Ask yourself what are your motivations for the budget and once you get clear on them, set them as a narrative you tell yourself. Don’t loose sight of them and visit them often. When you visit them, take a different viewpoint to see if it gives you a fresh perspective.
I reflected on this’d very thing this morning and I reframed my Why’s… I didn’t change them, I just had a fresh look at them.
5 other reasons for having a Personal Financial Budget.
1. You know what you are spending YOUR money on so you can reallocate spending to other areas.
2. Budgeting will help YOU stop YOURSELF from overspending.
3. Helps YOU to remain sensible when it comes to investing and managing YOUR risk tolerance.
4. Allows YOU to continue to build your wealth for your future goals – buy back Time!!
5. Builds discipline and a habit mindset that is useful for other areas in YOUR life.
The key here is it is YOUR BUDGET.