Looking at all of my failed attempts at creating a working budget, I’ve found that there were some underlying truths that held me back from accomplishing my goals.
What are these underlying truths?
There are many when it comes to budget writing. First, I believe it has to be simple. If a budget isn’t simple to follow, hardly anyone will even give any initial effort. Simplicity and quick comprehension leads to action. My former attempts at budget planning failed due to a complexity that was not sustainable in real life.
Second, it must be mathematically realistic. Often times, when people start a budget for the first time they don’t leave much money for each category. In other words, they are not familiar with how much their lifestyle is costing them. Unaware, they force themselves into budgeting failure.
Third, it has respect time restraints. People are busy. Many don’t have the time or the energy to follow a 100-page book plan. What they truly want is a quick understanding of the best budgeting methods available. A good, workable budget needs to be concise and fun to implement.
Fourth, it needs to anticipate contingencies. Some budgets seem written in stone, and once a contingency arrives, the budget can not support the unforeseen obstacle. A good budget is flexible.
The Art of Simplifying
Simplicity in life doesn’t come to me naturally. Just ask my friends and family. I tend to overcomplicate matters and prefer a million steps to destinations. However, over the past couple of years, I’ve started to see the value of simplifying things. Finances, clutter, life goals, routines, etc.
To simplify your budgeting process, you must rethink everything from the ground up. You have to forget everything you thought you knew your budgeting categories, the way you implement your registries, financial priorities, and more.
What financial personalities and concepts do you subscribe to?
I’m a big fan of Dave Ramsey, as many of you know. However, when reading The Total Money Makeover (which I highly recommend), Dave seemed to skip right over how to write a workable budget. He has some great bird’s-eye-view concepts of finance, but I have yet to find a detailed budgeting plan.
I’ve been working on something for quite a while, and I can’t wait to share it when the timing is right. It has to do with budgeting with simplicity. I just had to give you that teaser!
What are some budgeting truths you’ve come across? How have they worked for you?
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This was helpful - simple is good - thanks!