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Budgeting and perspective

I'm not going to go into how to budget right now, this is a little different. Assuming you have a budget, I'm truly hoping you do, and if not - don't worry, we will go more into that very shortly. We need to understand the basics of why we budget and how to treat a budget. Most people don't think too much into it, they just see a budget as a set of numbers. A budget can be so much more and the lack of a budget compared to having a good budget that you stick to can change your life. I am not exaggerating, I have seen people's lives truly changed just by this one thing.

So, assuming you have a budget. Do you honor it? Do you always stay within your boundaries? Hopefully the answer is yes, if it isn't, perhaps it's time to revisit it and remake it. The challenge that many people have with a budget if they often think that they need to spend all of it. If you're not one of these people, then you are lucky and you are likely on the right track!

Think of a budget as the absolute maximum you can spend, you aren't trying to hit that maximum all the time, you are just striving to stay under it. For example, if we talk about a grocery budget, if our budget is $150 a week - the goal isn't to spend $150 a week on groceries. The goal is to spend UNDER $150 a week on groceries. The goal is to have left over money to put aside either to save for something or even to save for a rainy day. The more you come in under budget, the more you can put aside. This doesn't mean to skip all the stuff which you like and only go for the cheapest possible things. This just means plan accordingly, don't aim to spend your budget, aim to spend less then your budget.

Depending on how you budget and the rules for yourself, if you come under budget 1 week, you can add that to the next weeks budget (or you can put aside and save). This in a way offers mini-goals, if you come under budget for 4 weeks in a row, perhaps you have earned yourself a reward of a nice dinner out or something to that effected - and you take the money you saved and use that to pay for it.

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