Budgeting: Why preserve the budget?

Budgeting is the act of deciding how you are going to spend your money. When we think of these activities, the general premise is that we are trying to protect the budget. By doing this, not spending all the budget is seen as a good deed, one to be celebrated. In some cases, usually in a corporate setting, not spending that budget can mean that you will lose it. It is not that you will, however, experience has shown department heads that the budget controller may cut their allocations for the next year, as it may appear as if the department can be managed on a smaller allocation. 

For your personal budget, spending less means that you can save more to invest, thereby increasing your overall net worth. However, is that always the goal? Saving money, investing, and growing your net worth and financial independence are always good financial objectives but living, life balance and enjoying the fruits of your labour are also good. The balance between these two types of objectives can be to spend the budget, not to be confused with overspending or spending frivolously. 

This may seem simple enough, but spending the budget does not always come easy to everyone. Some individuals have a miser mindset which may be associated with their relationship with money because of previous trauma, where they did not have enough. Now, they live in constant fear of being back in that position and therefore try to live on as little as possible. Or they may be wealth obsessed and would rather grow their net worth rather than make themselves comfortable and enjoy the benefits of their labour. 

What does spending the budget look like

Spending the budget means that you will utilise the budget as allocated. You will book that monthly massage, meet your friends for a meal out, stay up to date on your medical check-ups. You will not buy the cheapest items, ignoring the quality or one you like. However, you are willing to spend the money you have allocated to that expense during the budgetary process. 

Now, let us bring some balance to this. Not every season of your life will be one where you can spend the budget. There will be many seasons where the objective is to preserve it, and that is the nature of life. We work hard to better our lives and once we stay focused there will be a time when we can see the benefits. That comfort you have been working hard for can be to spend the allocated budget. 

Being in a position where you can expend the full amount you have allocated for a particular category should not come with guilt or remorse. If you find yourself with these types of feelings, then you need to dissect your relationship with money.  

Summary

Budgeting should not be seen as prohibitive and a killjoy activity but one where you can enjoy life while providing for your future. Taking responsibility for your financial future does allow you to live the life you desire. If you have avoided creating and living by a budget because of the fear of not being able to live a full life, know that you can. Go ahead and start the process.

To start your budgeting journey, get your copy of Living Loud on a Budget: Authentic Financial Living https://livingloudonabudget.com/book-locations/ OR https://www.amazon.com/dp/B0CFN4JCG5