How to Win at Budgeting: A Guide That Doesn’t Involve Numbers!

 

One thing that really annoys me  about the finance industry is everyone is dishing out the same stock standard advice when it comes to personal finance. And the thing is that as humans we’re not all the same.

We’re not all going to be able to follow that same restrictive budget. We’re not all going to be able to simply cut out those expenses, invest more or do whatever that standard crap is that you hear all the time.

You know the type of advice I’m talking about? Cut out the lattes, go on budget holidays, be more conservative, stay in, don’t go out. That is rubbish. Sure, mathematically that makes sense.

But as humans, we’re not programmed mathematically. In fact, most of the guys in the finance industry, the accountants and financial planners, they’re programmed mathematically.

They think logically and structurally, so that’s why they dish out that standard non-realistic advice.

But what I’m going to tell you is a lot different. What I talk about includes that emotional part of investing and that emotional side of managing money.

We’re going to be talking about kicking arse with your budget. Understanding what attracts you emotionally and what impacts you emotionally when budgeting.

So the three categories that we’re going to talk about.

 

Category One K.U.K.

If you fit into this category it’s called Keeping Up with the Kardashians. That’s where you want an epic lifestyle. You want the cars, you want the house, you want the clothes.

You want to almost live like a frigging rock star. If you do fall into this category, I’d be sitting down and I’d be thinking, “Why do I want those things? What impact and what value is that having to my life?

And, you know, what can I do to maybe minimize that? Am I filling a void in there?”

Maybe write down a list of all the things that you’re grateful for. Then all of a sudden those other possessions may not be so important. But if you do all that and you’re still attracted to that stuff, that’s awesome.

It just means that you need a massive income to be able to live that lifestyle and to also build wealth.

 

Category Two Soul Feeder

This is where I find that a lot of people fit.  It is where you have one, maybe two things that you like spending your money on and the rest of the time you can control your spending.

So rather than saying cut out those holidays, cut out buying the lattes, instead you choose the things that you enjoy and then tighten the belt for the rest of it.

If you enjoy having a brand new car, then have that as your one thing and then master the budget around the rest of it.

For me, I enjoy travel. So I enjoy traveling all the time and that’s my one splurge. The rest of it, I really tighten up and I can go from there.

And what this does is it allows you to have your bit of indulgence but it allows you to feed, you know, your cravings or feed your soul to still live life, and then you can easily make those cutting decisions in other parts of your life that you don’t really care about.

So understand, if you’re a Soul Feeder, find that one or two things that you may like doing and then the rest of it’ll be a lot easier to tighten up.

I compare this to having a cheat meal. You know how you’re smashing out a diet all the time or you’re restricting or whatever you’re doing, and then you have that one cheap meal, that’s enough to fuel you to keep on going and to live a much more balanced lifestyle. That’s what this is.

 

 Category Three Thrifty

This is for the people that are considered frugal. Terrible word so I’m using thrifty instead.

But these guys get really frigging excited about saving money, about having the cheapest option, about not having any debt, about doing the best thing they can financially.

Of course, these guys are mathematically in the best class. They’re going to be able to save money to invest and they’re going to be able to have savings to invest as well. It’s going to be a double whammy.

 But, unfortunately, we don’t all fit into this class. So if you’re one of these guys, you might get excited by paying down all your debt.

You might be happy to stay at home for the next 12 or 18 months and not travel, or you don’t get too excited about cars or where you live. And most of it is just getting your finances right.

That’s frigging awesome. I understand where you are and the impact that it has.

Now, it’s a good conversation if you’re in a couple to identify which one of these you fit into and try and work a way so you can both have your way of managing your finances.

If you’re both in this bottom part, work out what’s a soul feeding activity you can both kind of do whilst paying down the debt and meeting the needs of the thrifty person.

So sit there, have a conversation, either as a couple or chat amongst yourself. Find out which one you are. Identify what you like splurging on or what your spending habits are, and then start to create a budget around that.

 

Leave a Reply Text

Your email address will not be published. Required fields are marked *