This week we had to do $1500 worth of repairs done on our car. Eek! Our emergency savings aren't quite where we would like them to be and so it got me thinking more about budgets and all that fun stuff.
Budgets and I have an interesting relationship. Sometimes I am go good at keeping track of my spending, entering the data in the spreadsheet and seeing a surplus at the bottom. I feel pure joy and satisfaction. Other times my budget and I are strangers in the night, passing by but not really seeing each other. Those are the months when I add up the numbers the surplus is non existent...usually inverse of what it should be.
Some people might say, "why worry about a budget. Just stay a float and things will work out. A little debt is not the end of the world." If that sits well with you, than that is awesome. Everyone handles money, stress and life differently. For myself here are my reasons for wanting my budget to be my friend.
Helps me prioritize financial goals
Right now we have a small line of credit, a mortgage and not very much in savings. (We spent a lot of our savings on the down payment.) Having a budget helps me see how much money is going to service these debts (especially the silly line of credit). It shows that I don't have the financial freedom to do other things that I might want to do.
Since I would like to boost our savings to be a 6 month emergency fund and pay down our mortgage faster than 30 years, I can look at my budget see where I can cut back and pay off the debt and build up the savings as quickly as possible. Those are my financial goals at the moment and my budget helps me see that.
Helps me prioritize spending and saving
Right now as long as there is food in my belly, a roof over my head and clothes on my back I am/should be content. But of course, once in a while, I turn into a magpie. I see all these glittery things in front of me that I decide I must have. A fancy apron, cute bowls, an awesome dress, new furniture and the list could go on and on and on.
Having a budget (and not going to the ikea website) helps my magpieness. I know how much extra money we have each month, as well as a list of upcoming renovations, repairs, birthdays etc. Would I rather have a Bosch mixer that will help me make nourishing food for my family or that snazzy new couch? Or, would I rather spend $5 dollars a week on smoothies, or put that money towards saving for said Bosch? (As you can see I really would like a Bosch.) It is all about prioritizing how and what we spend money on. A budget helps us do that. You are in control of where you want your money to go.
Helps gain control of life
I like tweaking the old adage of "money isn't everything" by adding "but it sure helps a lot". When living the simple life, money is not the object of our existence. We want a loving home, real food prepared by real hands, wholesome activities, using things up and wearing thing out. These things don't cost a lot of money, but there are items to purchase that makes this way of life easier. If you are into making bread you need bread pans, a large mixing bowl and a rolling pin. A nice big stock pot helps when wanting to make soup stocks. If you want to ferment things a stone crock really helps.You may not have them to begin with so you will need to purchase them. Having your budget as a friend helps you set aside the money which allows you to purchase the things you will need and will use over and over again in your simple and less packaged life. You can begin to live and really envision the life you want to lead.
So a budget may not be the most glamourous thing in the world, but, it can be your friend on your journey through life if you let it. You do not need to be an accountant to do it. It does not need to be complicated. Your budget can be what you need it to be. It can be your disciplinarian or your cheerleader. You decide.
Next week I will have a tutorial on how to make a budget from scratch. There might even be ideas that might help you tweak your already existing one.
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