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Lesson #3.1 Budgets Suck. Here’s Why You Still Need One (2:30 mins)

Let’s be honest, just the word alone – budget – can cause folks to break out in a cold sweat.

Because the first thing that comes to mind is – restrictive categories, sacrifice, and constantly feeling like you can’t afford something when you work so hard and know you ‘deserve’ it.

Fact is, budgets suck.

But you know what sucks more? Being broke.

So we’re gonna suck it up, but on your adulting undies and do the hard thing.

Because in the beginning stages of managing your money budgets are crucial to you winning at money, and you need one.

But first, let’s clear up some things.

What A Budget Is

 A budget is a written plan for using money over a defined period, often one year or a month.

What A Budget Is NOT

  • A budget isn’t meant to be a straight jacket that prevents you from really living the life you want.

Think of a budget like having braces.

See, braces are dental tools that help correct problems and help put your teeth back in correct alignment.

Once they are aligned, the braces are removed and you use a different tool (your retainer) to maintain the alignment.

It’s the same thing with a budget.

It’s meant to provide parameters and help you put your finances in (or back in) the correct alignment.

Not to limit you from the things you love, but allow you to enjoy the things you choose to spend your money on with excitement, knowing that you are being financially responsible, can happily afford to do and where your actions won’t negatively impact you.

  • A budget isn’t meant to be something that you live with for the rest of your life.

Just like with braces, once you’ve mastered your finances and are functioning effectively again, you’re expected to move on to other tools.

But just like with braces, if you come out of alignment again, then you can (or may have to) put them back on to get yourself right again.

But they were never intended to be used forever.

  • A budget won’t magically make you manage your money better

A budget gives you the parameters, but you are an adult and the budget will only work if you do.

The best budget in the world still won’t work if you don’t choose to stick to it and follow through on your plans.

Whatever your financial goals, a budget can point you in the right direction, but you’ve gotta take the steps.

Why Do We Need A Budget?

If you’ve ever been broke a few days after getting paid and wondered to yourself ‘where did all my money go’ then you’ve experienced the phenomenon of ‘idle money syndrome where idle money becomes spent money.

Now that I’ve convinced you that budgets are not all bad, in the next lesson you’ll get the rules for creating one that actually works.