Wanting to live on a budget doesn’t mean that you must be broke.
In fact, it’s the furthest thing from the truth! There’s a lot of reasons why you might want to live on a budget and for the most part they’re all good reasons.
Think about it. Would you rather be spending more than you earn and going to sleep worried at night wondering how you’re going to make your rent or mortgage payment? Or would you rather live within your means, invest your extra money wisely, and sleep soundly at night knowing that you’re on a solid financial path?
Living on a budget doesn’t mean you’re going to start living in a shack and spend hours a day pouring over spreadsheets of financial information with a red pen. You don’t have to write anything down in spreadsheets if you don’t want to. You don’t have to cut out all the good things in life. You don’t have to bring a plastic bag full of coupons to the supermarket. You don’t have to start eating 50 cent top ramen soup every day.
If you do choose to live on a budget, you’ll be living a better life. You’ll be able to invest a portion of your income into any investment vehicles you may so choose – including real estate investing or your retirement fund. Check out the posts The 10% Debt Reduction Plan, How to Escape Your Mounting Credit Card Debt Financial Situation, and The Debt Destruction Technique: Destroying Debt One at a Time for more information on this. Financial freedom is the goal – controlling your finances consciously is the solution.
Stop trying to keep up with the Joneses by getting caught up in the whirlwind of consumer spending. Live within a budget and invest smartly and you’ll be passing the Joneses by in your Maserati GranTurismo (my personal favorite sports car – insert your favorite car there if the Maserati isn’t your cup of tea).
What’s most fascinating about living on a budget is that once you get into the budgeting lifestyle you really won’t notice the difference in your quality of life. In fact, you may actually improve the quality of your life because you won’t be worrying like mad like you used to about the huge credit card bills piling up on your kitchen table.
What we want to do is make financial lifestyle changes on a day-to-day basis by taking fresh eyes to the way you live your life. We’ll make the shift from the place you are financially to where you want to go.
The challenge with “living on a budget” is the actual phrase, “living on a budget”. Sounds rough, doesn’t it? Maybe the phrase makes you imagine eating rice for breakfast, lunch and dinner, reusing your kitchen paper towels, and washing all your clothes in the local river. It doesn’t have to be like this (unless you really like the river life).
Living on a budget is about discipline – a choice you make to notice what you’re spending and making per month. That’s basically what it’s all about – budgeting is not about living in a van down by the river.
People want to live on a budget for different reasons. Maybe you want to retire early. Maybe you want to save up for a home or a car. Maybe you want to increase your savings by dropping your expenses. Maybe you want the pleasure of wanting the balance in your bank account grow. Maybe you want to purchase a multi-unit property for real estate investing and you need that capital. Maybe you want to get to the point financially that you wake up in the morning knowing you have the freedom to not go to work if you don’t want to because you’re financially free. Whatever the reason, budgeting will get you to your financial goals!
Have you ever checked your savings or checking balance, nervously noticed the balance is close to zero, yet realized you have a mountain of bills to pay? If you’ve never felt this feeling then feel lucky because millions of people have! It affects your mood, your relationships, and your sleep. For some people, this is a situation that plays itself out on a monthly basis. The solution is to create a simple budget plan and disciplining yourself to stick with it. It’s about overcoming the negative financial spending habits that have put you in the situation in the first place.
Most long-term relationships end because of money. It’s sad but true. This holds true across socio-economic levels – from the ultra-rich to the less financially fortunate. In fact, 7 out of 10 couples do not agree with each other on financial issues – mainly on credit card spending! We find a partner that likes going to the same nightclubs yet we forget to see if we’re financially compatible! The basis of the fighting between couples on financial matters can be due to power struggles, emotions, love or otherwise. The way out of this cycle? Yes, you got it, budgeting. You’ll hear that word a lot in this article. 
Remember when I said that budgeting doesn’t mean you have to become a monk and forgo all modern luxuries? Well, I’ll tell you right now – budgeting also means to treat yourself. If you budget correctly, you’ll actually be improving the luxury aspects of your life in the long run. Budgeting can bring you that huge mansion on the corner lot. Budgeting can bring you a two week long stay at an ultra-exclusive resort.
One of the interesting aspects of budgeting is that you may just realize that the best things in life really are free. You may realize that instead of your old treat of a Starbucks triple ultra-mocha choco-latte crapuccino you actually prefer going for a walk in nature, perhaps with a home-made cup of tea. You may realize that instead of your tri-weekly visits to the local movie theater, you prefer reading a book at your local public library. You may realize that instead of “making it rain” at a South Beach nightclub and spending $500 on a bottle of alcohol (yes, that’s how much it costs in South Beach for a bottle of vodka or whatever type of spirits you prefer), you might instead enjoy spending some time with friends and family at a house party playing music together.
The bottom-line is that budgetting is something we all can do – no matter what our economic level is currently. The first step is budgetting is making the decision to live consciously when it comes to your finances. Then all it takes is some smart habits and financial techniques and you’ll be on your way to financial freedom!
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