Give every dollar a job.
Tell your money where to go and what to do.
Budgeting is king.
I don’t disagree. In fact, a well thought-out and implemented budget is often key to digging out of debt and securing your financial situation. But here’s the thing: the mechanics of a detailed budget are worthless without self-discipline.
Want to know what our budget looks like? Give and save first, then spend less than we make. It’s working for us (likely due to our crazy thrifty personalities moreso than the method itself).
I know our budget is overly simplistic and certainly won’t work for everyone, but I’m going to go out on an unpopular limb here with a thought: Line item budgets aren’t working for everyone, either.
Without self-discipline driving budget planning, it’s much too easy to assign funds to a routine pedicure while wondering why on earth $30 a week won’t feed a family of six.
Without self-discipline, it’s pretty tempting to shift that envelope cash around for the last-minute movie with friends, all the while promising to add cash to the emergency fund next month, for the third month in a row.
Without self-discipline executing the budget, it’s easier to justify buying the best deal ever… again.
There are too many foreclosure signs staked in the lawns of high-end furnished homes.
There are too many double income families living pay check to pay check.
There are too many stressed-out people wondering why they have money troubles when they also have a budget.
I know families have been hit hard with rotten recession-related issues. I know not everyone makes poor decisions with their money. I know it could be us next week!
I also just can’t help but think budgets would be worth a lot more if everyone executed them with a healthy dose of self-discipline.
How do you make sure your budget works for you?