When Budgeting your Money Doesn't Work
by Kathy Miller
Have you ever tried to budget your money only to find yourself feeling frustrated and out of control? Does sticking to a budget seem like something you are not capable of doing? When you add up your expenses, do they exceed your income? Do you sometimes wonder how you have been making it all along?
The truth is most people answer yes to one or more of these questions. While financial experts continue to recommend budgets in books about getting control of your finances, most college graduates struggle with this system.
Until now the assumption has been that people who cannot successfully work with a budget do not understand the system. Actually, the failure rate for budgeting is so high because the budgeting concept is inherently flawed.
The problem is the word budget is restrictive. Similar to the word diet, the word budget conjures up all sorts of schemes to deprive yourself of what you really want. In this context, managing your money becomes a chore, a thankless job, an unrewarding task. Very few people can succeed with budgets, and those that do rarely feel enthusiastic about it. After all, who wants to go on a spending diet?
Instead of working hard to pay your bills and stay within your budget, you can develop a plan for creating the lifestyle you really want – a Lifestyle Plan. Imagine your dream job/career, schedule, and personal life. A Lifestyle Plan includes deciding how you want to live while you are on your way to making your dream a reality.
To carry out your plan you will need to compare your income to your expenses, and you may need to make changes in your spending habits. While cutting back is not always the solution, keep in mind you may need to reprioritize. However any adjustments you choose to make will be the result of focusing your attention and your intention on achieving your goals rather than on self-deprivation.
You are more likely to be successful with a Lifestyle Plan because, unlike sticking to a budget to budget your money, working toward a dream is inspiring. When you focus on having the lifestyle you long for, the necessary changes will be easier to make.
The following questions will get you started on creating your Lifestyle Plan:
- Where are you now? Calculate your net worth and compare your monthly expenses to your income. A Good Steward's Money Management Journal ($14.95, available at www.agoodsteward.net) will help with this step.
- What is your life like now? What are your daily activities? What are your struggles?
- Where are you going? What could your life be like? What would your daily activities be if you achieved your goals?
- How can you get there? When you ask yourself this question, you start to expand your possibilities. Your mind immediately goes to work on finding the answer.
- What changes can you make right now? What actions can you take to bring you a step closer to achieving your goal? You may have to make changes that are uncomfortable. Be willing to do what it takes.
- What resources are available? Reach out for help when you need it.
For more information about solving your financial problems, visit www.AGoodSteward.net
Kathy Miller is a Prosperity Coach and Founder of A Good Steward, a consulting firm that helps individuals, couples, and groups overcome personal and professional money obstacles. For more information, call (908) 647-1856 or visit www.agoodsteward.net.
Copyright 2002
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