I'm not my budget, and neither are you!
Updated: Nov 1
Sometimes we can look at financial advisors with a side eye, because what do you mean I have to live according to a budget? A rigid spreadsheet limiting what I get myself?
What if I shared a different perspective: living to make your budget, rather than being confined by it. Let's explore how we can balance budgeting, savings goals, and personal finance principles, all while living the way we want to!
Embracing a Flexible Money Mindset
Living to make your budget doesn't mean sacrificing your dreams and desires. Instead, it's about embracing a flexible money mindset. Think of your budget as a tool to guide your spending, not a set of chains to bind you. By understanding your financial goals and priorities, you can allocate your resources wisely while leaving room for spontaneity and joy.
Setting Clear Savings Goals
One of the key elements of living to make your budget is setting clear savings goals. Whether it's a dream vacation, a cozy home, or supporting a cause you believe in, having specific objectives gives your financial journey purpose. Set achievable milestones and celebrate your progress. Remember, these goals are your compass, guiding you toward a fulfilling life, not restrictions.
I really wanted to own my blog name and make an LLC.
Buying an LLC in Virginia breakdown cost:
-Registered Agent Service : $199.00
-Full automatic compliance: $199.00
-Employer ID Number (EIN): $99.00
-State Filing Fee: $100.00
Subtotal = $597.00
$597 is not in my monthly budget to just spend freeingly and I don't touch my savings account. So I created 3 types of saving plans.
Practicing Intentional Spending
Living a minimalist lifestyle is all about intentional choices. Apply this principle to your spending habits. Before making a purchase, ask yourself if it aligns with your values and goals. Consider whether it brings you genuine joy and adds value to your life. By making mindful choices, you naturally align your spending with your budget, ensuring your money works for you, not the other way around.
Embracing the Power of Compound Interest
One of the most potent tools in your financial arsenal is compound interest. By saving and investing wisely, your money can grow exponentially over time. Research investment options like mutual funds, index funds, or even individual stocks. By harnessing the power of compound interest, you can watch your savings multiply, bringing you closer to your financial aspirations.
Best ways to invest to utilize compound interest:
Savings accounts and certificates of deposit
Resources to Explore
Living to make your budget requires knowledge and support. Here are a few resources to explore:
Books: Dive into personal finance classics like "The Total Money Makeover" by Dave Ramsey or "Your Money or Your Life" by Vicki Robin for timeless wisdom and practical tips.
Apps: Consider using budgeting apps like Mint, YNAB (You Need a Budget), or PocketGuard to track your expenses, set savings goals, and stay on top of your finances effortlessly.
Communities: Join online communities or local groups of like-minded individuals who share your financial philosophy. Engaging with others can provide valuable insights, motivation, and accountability.
Remember, Bestie, living to make your budget is about empowerment, not restriction. It's a tool that enables you to live a purposeful life aligned with your values and aspirations. So go ahead, set those savings goals, make intentional choices, and watch your financial dreams come to life!
Stay empowered and financially fabulous!