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Is “Budget” A Bad Word?

 

Cut your spending by $6,000 without giving up the fun and without a complicated budget.

Break the paycheck-to-paycheck cycle, find the money to pay back your loans and finally build your savings.

by Rob Bertman, CFA, CFP® in Money Strategy, Spending
April 26, 2016

Summary

The word “budget” can seem very restrictive. How many people go out to dinner with their friends and when they are about to order that 2nd drink say, “Ooo, you know what? If I order this drink, it’s going to put me over budget, so I’m not going to order it.” The answer is not many.

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The word budget is like the word diet. It feels restrictive and limiting. You have to watch what you eat/watch what you spend. It really doesn’t set people up with a successful mindset.

Money Management Is Like Time Management

Think about approaching money with the same mindset as time management.  Successful people are extremely strategic with their time. They prioritize, block out time and get their priorities done. They also know that relaxing and enjoying themselves is important, so they schedule time for that as well. Successful people are very deliberate with their time.

The same is true with money. People who are successful with money are very strategic with it. They understand the importance of every dollar and what that means to them.  They consciously prioritize where their money should and shouldn’t go. They measure the impact of every dollar on the impact and quality of their lives.

How Can I Be More Strategic with My Money?

So before going out with your friends ask the question, “How can I be more strategic with my money tonight?”  Do you see the difference when you say, “I can’t spend money on that,” vs “How can I be strategic with my money?” One is limiting and constrictive and the other leads to a successful mindset.

You start thinking about ways that you get the same enjoyment and fun out of the night but without having to spend that $50 or $60. Maybe you could have a great night for $30.  Where would you put that extra money to have a greater impact on your life? That’s just asking the question for one night.

Imagine the impact over time if you ask yourself that question every day. “How can I be more strategic with my money today?” Money might go from being a stressor in your life to having a positive impact. Imagine that.

I greatly appreciate you taking the time to read this.  Please connect with me if you haven’t already, and I look forward to talking with you soon.

Thanks!

Rob Bertman, CFA, CFP®
Founder & CEO
Money With Impact
www.moneywithimpact.com

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empowering mindset

Time like money

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Transcript

Hi there. I’m Rob Bertman Founder of Money With Impact, and today we’re going to talk about why budget may be a bad word.

Now, I don’t know how many of you have a budget or how many of you have had friends who have budgets and if you’ve had conversations with them, but the word “budget” can seem very restrictive.

I mean, how many people when they’re out to dinner with their friends before ordering that 2nd drink say, “Ooo, you know what? If I order this drink, it’s really going to put me over budget, so I’m not going to do that.” How many people really do that?  The answer is not many.

In a lot of ways, the word budget is like the word diet. It feels restrictive and limiting. You have to watch what you eat. You have to watch what you spend. You can only spend money on certain things and not on others. It really doesn’t set people up for a successful mindset around their money.

Money Management Is Like Time Management

I like to equate money with time. When you look at really successful people, they are extremely strategic with their time. They prioritize and get things done in certain time blocks. But, they also know that relaxing and enjoying themselves is part of it too, so they schedule time for that as well. Successful people are very deliberate with their time, and that’s part of the reason why they’re successful.

The same is true with money. People who are strategic with their money get the most bang for their buck.  They understand the importance of every dollar and what that means to them. They balance the quality of life that they want with the impact that those dollars could have in what they’re going to decide to spend money on and what they choose not to spend money on because that doesn’t serve them as well.

So before going out with your friends, rather than thinking about, “Hey if I order that 3rd drink, I’m going to be over-budget,” ask yourself the question before you go out, “How can I be more strategic with my money tonight?”

How Can I Be More Strategic with My Money?

So let’s say you’re going out to dinner with your friends. You’re going to have an appetizer, maybe a salad, an entrée and a dessert, and then some drinks.  Well, how can you be strategic with your money? When you ask yourself that question, you start thinking about ways that you get the same enjoyment and fun out of the night but without having to spend that $50 or $60. Maybe you could do it for $40, and $20 every so often adds up.  It’s really really important to think about being strategic with your money, rather than saying, “Oh I can’t spend money on that,” or “I’ll be over-budget if I do that.”

Do you see the difference? When you say, “I can’t,” it’s limiting and constrictive, but when you say, “How can I be strategic?” that empowers you to make a decision that’s right for you, and it’s all about being strategic. That’s what successful people do.  Money, time, it’s all the same thing.

So next time you’re going out with your friends or doing something that you’re going to spend money on, just ask yourself that question: “How can I be more strategic with my money and still get the enjoyment out of what I’m trying to do?” Still get the impact out of the experience of what I’m going to be doing. So ask yourself that question, and hopefully it helps you think about money in a different way. Rather than restrictive, think of it as empowering you to get the things out of life that you want.

So, thanks for taking the time. Feel free to connect with me. I’m on Instagram (@BertmanRob), Twitter (@BertmanRob), Facebook (Rob.Bertman), LinkedIn. You can also reach me by email at rob@moneywithimpact.com.

I also have links below to connect with me on the social media sites underneath this video here. So please do that. I’d love to hear what you come up with and what your experiences are with this, and I really appreciate you taking the time.

I’ve been putting these posts together for a few weeks now and I really really value your time. Thanks so much for the feedback and the ideas. I’m here to serve you and to help you. So I appreciate the feedback.

Please connect with me if you haven’t already, and I look forward to talking with you soon.

Thanks!

Rob Bertman, CFA, CFP®
Founder & CEO
Money With Impact
www.moneywithimpact.com

Click & Connect:  Instagram   Facebook   Twitter   LinkedIn   YouTube

 

Cut your spending by $6,000 without giving up the fun and without a complicated budget.

Break the paycheck-to-paycheck cycle, find the money to pay back your loans and finally build your savings.