What is The Most Important Aspect of Budgeting?
By: Bianca Zagan
Tags: Saving Money, Budget, Budgeting, Spending, Saving

@goir on Shotzr

Budgeting is overrated — I read somewhere the other day. Why did the author say that? ‘Because budgeting alone won’t get you very far. It won’t make you a millionaire.’

And I had mixed feelings when I read that: amusement, sadness, and compassion as well.

Amusement because I realized there are people who genuinely believe everyone wants to be a millionaire.

Really?

Let’s say when you became a teenager, if someone showed you a smartphone app and said ‘just install this app and you’ll become a millionaire, with millions in the bank doing nothing’, would you have passed?

No, I don’t think so. You would have been “Oh, yeah! Make me an effortless millionaire!”

But reality is that you have to work to get there. Consistently. For years. Bringing value to an ever greater amount of people.

And not everybody will make that effort, let’s be honest. So, not everybody will be a millionaire.

Saddened because there are people who have in the back of their mind the idea that you need to be a millionaire, to be happy. I agree, this can be a life goal for some, yet the wisdom you’ll find time and time again in that pursuit is: being happy with where you are now (less than seven figures) is key to unlocking even more.

Compassion, because I understand the yearning to make more. Having more money is a desire that stems from different parts of our psyche. We might look for security, safety, survival, recognition, pleasure or influence. Every milestone on the path to healthy money habits can get us to where we forget to enjoy what we have already accomplished and be restless looking for the next thing.

Yet, what I’ve found in my personal experience — and what teachers much wiser than me profess — is when you let go of the obsession that you need to get ‘there’, it comes easier. The moment you accept it’s going to take time and conscious effort, it comes sooner. When you are at peace with not even achieving it — but you are content with doing the work either way — then is when your mindset is most ready. It will enable you to make choices, find people, find motivation and ideas for what is really necessary to succeed.

You may wonder: what does everything I’ve written above have to do with budgeting? And better yet, the title was:

Well, we budget with a purpose.

We might want to get out of debt, save for the future of simply make the most of every dollar.

Whatever the goal, the key is: get to a point where you do the work and come to peace with the idea that you’re ok with where you are now.

This is coming into a mental state where you are relaxed. Don’t beat yourself for not doing even better. You don’t resent yourself for not having made better decisions with money last month, or last year. You are grateful for at least becoming aware you could change and are committed to change your daily actions.

This is the most important phase with budgeting. Like every other behavior change, it starts with the mindset.

If you only focus on the outer actions, it’s not enough. Your past behaviors have ‘roots’ that will bring out new unwanted actions again.

When you focus on planting new habits (with a relaxed attention) and stop watering the old habits (with anxiety or resentment), you are on the right path.

Yes, it may take time.

Make patience your friend.

Because the most important aspect of budgeting and building a better financial future is your mindset.

That can change, with tiny daily steps.