The Purpose of Budgeting

Budgeting. You’ve heard the word countless times. It’s kind of overdone. But there’s a reason for this.

It’s a necessity.

If you want to flourish and prosper financially then you need to budget. Sure, there are people in this world who have ridiculously high incomes; they may come from generational wealth or they’ve received a large inheritance or they’ve made sound investing decisions from an early age.

There are also people who are happy with the status quo and are not looking to flourish financially. And that’s okay.

But for everyone else, it’s a necessity.

Why do you think all of the world-class financial gurus talk about the importance of a budget? Why do we always hear the way to get ahead financially is to “spend less than you earn and invest the rest”.

I did my first ever budget at the end of 2017, just over 5 years ago. Prior to my first budget I always thought budgeting meant you weren’t allowed to spend your money. I was wrong. I found out that having a budget was unbelievably freeing. Yes, it was hard at first and it took a couple of years to make it effective, but the short-term pain was totally worth it.

I see my budget plan as an agreement. It allows me to spend on the things I want to spend on, save for the things that matter to me and also invest for my family’s future.

Budgeting is my roadmap to an early retirement. (That’s a whole other post but early retirement does not mean I want to lay on the beach sipping on pina coladas for the next 40 years - although short bursts of that sounds rather appealing).

Budgeting has given me a fresh perspective on my finances and on life. I believe with all of my being that my financial future is bright and that I will live a life of my choosing; one I have curated carefully and with intentionality.

I really hope you get to feel this some day too.