Don’t Like Sacrificing Your Morning Coffee? You Don’t Have To.
Creating a budget can seem like a daunting and restricting experience. You might need to get in control of your finances, but making the budget worries you because you’re afraid of what the answers might tell you; you need to change your lifestyle. Maybe you splurge too much, maybe you feel you should be saving more and spending less. After all, it seems that everyone is trying to live a ‘frugal’ lifestyle. When you think of frugality, you may think of extreme coupons, or minimalism. And that might not be for you, and that’s ok. Maintaining your lifestyle while sticking to a budget is possible, and here’s how.
What Is Your Lifestyle?
It is an incredible feat to save a lot of money – but losing your own interests and loves by doing so may not be worth it to you. Many people are realising that their lifestyle is not in keeping or in vision of their big picture goal, and it might be time to evaluate whether this is true for you also.
Answer some questions and be real about what you want now and in the future. You may want to buy a house one day – but what are you realistically willing to compromise to achieve that goal? Are you willing to give up your current lifestyle for that?
One of my clients simply decided that owning a home wasn’t for her. She enjoys travel, and experiences, far more than she's ever enjoyed staying in the one place. She has a plan for retirement and super that makes up for the lack of housing when she does retire, but that’s her path she's decided to go on. She has chosen the lifestyle she wants now and in the future, and has planned her finances accordingly.
It’s time to ask yourself what you really want from life, what sort of life you want to lead, and what changes you need to make, if any, for you to lead that life.
Be Honest With Yourself
This is the time that you do need to have an honest and tough look at your finances. If you have an idea of what you want, what lifestyle you want to lead, you will need to make sure your budget is in line for that. If dinners out, or fashion or travel is something you really love and makes you happy, and have decided that is the lifestyle you want to have an pursue – then it’s time to make it a reality. You need to lay out all our expenses, make a budget – and most importantly, know how much you can honestly spend each week for you to achieve your goals and still have the lifestyle you want.
It’s Ok To Splurge – Just Know Your Limits
Hopefully you have become more honest with yourself and your finances – and know what you’re spending it on and what you want to be spending your money on. This means you should know how much you can or are willing to spend each week on ‘splurge’ items.
When we purchase splurge items, our brain releases dopamine, which gives you immediate gratification. A good feeling when we ‘reward’ ourselves with something we want. However, too many times we feel buyer’s remorse afterwards – guilt for splurging so much money when maybe we should have saved it instead. But if you stay in that predetermined amount, you can shop completely guilt free. Meaning you get to enjoy the things you want – without the sacrifice.
Having a spending plan – or at least a guide of your limits and spending money is an easy way to make sure you’re staying within your limits while also not losing the great and fun stuff that makes your life full. Actioning your deepest wants and desires and making sure you’re living a life that benefits you now and, in the future, can be the thing you need to do to feel in control of your finances but also like you’re still living a life you want.
Have a wonderful week,
My Income Organiser