Let me make an (almost) blanket statement. Unless you’re living severely below the poverty line, you don’t need more money to live a fulfilling life. If handling money has proven to be a challenge in the past, trying to handle more money will not solve your bad habits.
Guest Post by Jesse Mecham
A majority of people do have “enough” money right now, they just don’t know how to maximize it.
Budgeting is maximizing at its finest!
In order for anything to run smoothly and with purpose, it requires…well, a purpose. Without a budget — the plan that shows you your priorities and goals — your money runs rampant in all directions.
Money needs to be told where to focus it’s power, and YOU are the one who should be shouting out orders.
The problem is, most people approach their money re-actively instead of pro-actively.
They wait for situations to arise and then they decide how to use their money. Over-spending and impulse buying inevitably occurs. In-the-moment decision-making severely limits your finances because you’re not acting from the proper motivation. You’re usually reacting from pressure, stress, or the “gimmes”.
Creating a budget before-hand allows you to plan your financial priorities while in a sane, non-stressed, well-rested state. Once you have a “big picture” in mind for your money, you can use it as a touch stone for all future money decisions. Keeping your goal in mind will naturally help you act with more self-discipline.
No doubt that big picture isn’t just spending less at the grocery store, or making sure you can cover your utilities bill. I’m sure you have bigger dreams in life than “I hope I have enough to pay for a tank of gas next week.” Even if that is your big dream for next week, life doesn’t have to be a maddening cycle of making sure ends meet. There’s more to it than that.
Properly caring for your every-day financial needs allows you to carry out your “some-day” goals…
Whether it’s starting your own business, traveling around the world, or owning your own home, budgeting is the fundamental tool for achieving these dreams.
It’s like a built-in drill sergeant for your slacking will power–always there to remind you what your money is really working for.
So every time your hand hovers over another new pair of shoes, you have your budget to answer to.”$50 stilettos?! That’s $50 not going into your Venice fund! Which one is more worth it?” You think for a moment. Venice it is.
Money can’t run rampant anymore. It knows it’s job and carries through, obediently.
Obviously this takes work and discipline on your part. The budget does not run itself. That’s your job. The point is, give yourself a plan and a purpose to work towards. That initial goal will have a monumental affect on how you manage your money.
Jesse Mecham is founder of the financial software company, YouNeedaBudget.com – because you do! Based on four fail-safe rules, Jesse’s revolutionary software teaches a method that helps people break the paycheck to paycheck cycle, get out of debt, and save more money faster. You haven’t budgeted like this.
