The REAL First Step to Budgeting

(What’s YOUR Why?)

Like a lot of people, I used to add up my bills and subtract that amount from my paycheck and call it my “budget”.    

If that’s how you're calculating your budget, I’m betting that method isn’t working for you any better than it worked for me! 

What I learned from that method is that: 

A. It doesn’t work and 

B. I was starting on the wrong step!

I have found that creating and crafting a budget that works for you and your life actually starts WAY before you add up all your bills.  

So, let’s dive into the FIRST STEP of how you ACTUALLY build and craft a budget that will work FOR you and your life!

Find YOUR Why.  YOURS.  Not Someone Else’s.

I’ve said it before and I will say it again: The first step on the path to a successful budget is to figure out the kind of life you want your money to build for you.  Yes.  Really. 

And there’s the rub: what kind of life do you want?  

One of my favorite quotes by Lewis Carroll is: “If you don’t know where you’re going, any road will get you there.”

Are you on any road…or are you on YOUR road?

What I’ve noticed from talking to hundreds of people about their money and what makes their budget work and what doesn’t, is that the people who stick to their budget do so because they have a bigger picture life they are building.  

Knowing what their bigger picture is helps them avoid self-soothing with money.  Self-soothing with money is spending money when we’re sad or mad or even glad, but don’t have anyone to celebrate with.   Self-soothing leads to mindless spending and overspending.  Ask me how I know. 😉

But, when you know your bigger picture, YOUR WHY, for what you want your money to do for you, the kind of #JoyFULL life you want to build, everything else about money gets a lot easier.

How to Find YOUR WHY

The good news is finding YOUR WHY isn’t hard.  But, It’s also not easy, lol, and may take you some effort and time to get crystal clear on what YOU really, really want.

#spicegirlsFTW!

All you need to do is answer these four questions:

Question #1: I want to get better at money because?

Question #2: Because if I can do that then…?

Question #3: And, if that happens then…?

Question #4: Which means that I will…?

Remember, I said it’s not hard, but it’s not easy, either.  You may need to go through these questions several times to drill down to what really matters to you.  

Personally, I go through them every year during my annual update and reset New Year’s Eve week. (If you want to know more about my annual update and reset, drop me a DM on LinkedIn or Instagram and I’ll think about how to share it!)

I also go through these four questions whenever I’m feeling a little disorganized and out of sync with my money.  YES, even money coaches can get out of sync with their money sometimes!  

Your Jumping Off Point

Because I know it can be hard to get started with a new habit, below are my answers to the four questions.  These are the answers I wrote down when I was trying to get control of my money and money mindset after my divorce.  I’m including them here to give you a starting point and, hopefully, a little inspiration.  

Your answers will be different - and they should be!  

Your answers will also change over time - I know mine have.  

Just get started.  Run through them once, set them aside, and come back a few days later and see if your answers still resonate, or if you can go deeper.  I promise the time will be worth it.

Here are my answers:

Question #1: I want to get better at money because? 

Because if I can get my money organized then I will feel more in control. I’ll feel more competent, and I really want to feel competent about money.  I want to feel like I know what I’m doing and that I’m “doing it right”.

Question #2: Because if I can do that then…?

I can get my money organized and I’ll stop paying things like stupid late fees on my credit card bills just because I forgot to mail or pay the bill on time or because the payment got there one day late.  I won’t waste $35 on overdraft fees because I wasn’t paying attention.  I’ll save all that money and if I can save money, that will also make me feel like my money is working for me instead of I’m working to hold on to my money.

Question #3: And, if that happens then…?

I’ll think of myself as a “saver”.  I’ll have savings to fall back on if I get layed off or if I have an accident.  I’ll be able to put money in my retirement account.

Question #4: Which means that I will…?

Never, ever, be a burden on my daughter or god forbid, my mother.  I will have enough money to support myself when I’m old, or if I get sick.  I want to make sure I have the funds necessary to take care of myself.

I hope these questions are helpful to you and help you take the real first step in creating a budget that builds a #JoyFULL life you love!  

**I am not a licensed financial advisor.  I am a money expert and I offer education, tips, tricks and my opinions around money.  You should consult a professional who understands your needs in order to make the best decisions for you!  Additionally, some links in this blog may be affiliate links, which means if you click the link and buy the product I may earn a small commission - at NO COST to You! It’s one of the ways I keep the lights on around here so TYIA! 😉