Let's Get Specific

Alright, this week it’s time to get specific. So much of financial advice that you see online is often too generic, not applicable, or even so conceptual that it’s hard to really know how to put it into practice.

That being said, to a degree, it kind of has to be that way. For those of you that don’t know, the financial services industry is very heavily regulated to the point that many advisors are often scared to get too specific in any other situation than a one-on-one basis, because they fear repercussions imposed by our regulatory bodies.

But also, everyone is different which makes it hard to know what piece of advice is best for which person.

The fact is advice that is borderline life changing to one person could not even be relevant or could even be detrimental to another.

So, throughout this newsletter I will strive to be as beneficial as possible while still attempting to offer advice that anyone can benefit from.

Ok then, what is today’s topic that I’m wanting to cover?

Well, prepare yourself…

It’s the “b” word…

Budgeting.

I know, I know, it probably hurts to even think about.

The thought of opening up a spreadsheet on your computer and reviewing every transaction to go through all of your accounts that you have spread over several banks can be painful.

But I’m here to tell you that it doesn’t have to be that way.

Thankfully, the constant improvement of technology has created numerous ways to make budgeting easier, and even sometimes a little fun.

I highly recommend looking into some apps that you can download to help you budget.

If you find the right ones, you can link them to all your accounts and they will actually track, categorize, and plan your transactions.

We’ve tried several in the past and have finally locked in on one that we are planning on sticking with for the foreseeable future, so don’t be scared to download a few different ones, spend 15 minutes linking up your accounts, and playing around with them to see which one you like best.

Okay so, everyone has probably heard that they NEED to budget, but let’s get into WHY that is.

It’s because you can’t plan for the future if you have no idea what is going on in the recent past, present, and near future.

Think about a car. It has rearview mirrors, side windows, and a front windshield. That’s because it’s important to know what is going on behind you, what is going on where you currently are, and what is happening right in front of you.

But budgeting doesn’t help you see all the way behind you and all the way ahead of you just like the car windows and mirrors don’t offer a complete view of your entire road trip.

It’s just for the time (or space) right around you. As we continue through this newsletter, we’ll start to take one more of a GPS view of financial planning, but first, we have to address the immediate concerns and situations before we’re able to zoom out.

Now one of the problems with budgeting is that so many people have a negative view of it. They think that it is there to restrict them from doing the things that they want.

I want to push back against that though. I think that it is much more freeing than restricting.

Creating a budget helps you make sure that you’re aligning your priorities with what your bank account says your priorities are. It gives you the knowledge to look and see that you may be spending a lot of money on something that you really don’t care about, which in turn, creates a shortage for the things that you actual want to spend your money on.

To me, it’s really easy to draw a parallel between budgeting and the perspective that Christians hold.

Yes, the Bible outlines “rules” and “commandments” of what it looks like to live a Christian life, but it’s not to keep us from doing the things that we want. Rather, it’s to keep us growing closer to the thing that we ultimately value most, Christ.

So especially, if you hold a biblical worldview, budgeting should be something that makes sense as not a limiter or prohibitor, but a path to a freer financial life.

And if you don’t hold a biblical worldview, then I hope you can still agree with the fact that if you become more aware of overspending on things that you don’t really care about, say like eating out, then you’ll be

much more likely to shift some of the money that you spend on that, towards something like your vacation fund that you’re really wanting to use to take your family on that unforgettable vacation.

So, I challenge you to shift your mindset a little bit, realize that budgeting is something that gives you more freedom and control over your financial life, and even see if you can make a game out of it. I’ve heard of spouses challenging each other to see how few transactions that they can make in a month. Or even just have “money dates” where you go out to eat (or stay in depending on your budget…see we’re already putting it into practice) and talk about how your spending went last month and what is coming up in the month to come.

Try to find a way to make it some kind of competition or just a way to make it fun.

Then a mindset shift should also be followed by the actions to back it up. So download the budgeting apps, figure out which one you like most, and then make it a habit to check it regularly. Most importantly though, don’t just check it on your own. Check it with your spouse. Talk about it. Make sure that you both know what is going on and make sure you’re in agreement.

One of the biggest points of conflict in families involves money, so instead of dodging the subject and being scared to bring things up with your spouse for fear of judgement, or disagreement, attack it head on. Talk about where y’all are financially. Your spouse may not be as interested in it as you are when things are going well, but if you have open communication in the good times, you’ll have better understanding of each other in the harder times too.

“The plans of the diligent certainly lead to profit, but anyone who is reckless certainly becomes poor” Proverbs 21:5

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