You feel like you make a good income, so why are you still living paycheck to paycheck? Where does all that money go??
Does this sound familiar? I does to me!
My husband, Zach, and I used to have this conversation regularly. I say conversation, but it was more like an argument every time. We couldn't figure out why our fantastic income just didn't seem to be enough to live on. I was a stay at home mom at the time, and Zach brought in our sole income. I managed the bills and he worked.
When Zach asked the question, "Where did all our money go?" I was immediately defensive. Since I was managing the bills, the grocery shopping, and everything else involved with running a household and raising kids, I felt guilty that I wasn't managing the finances well. I felt like it was my fault that the money was all gone.
In reality, there were so many more issues causing us to live paycheck to paycheck. It wasn't just me. To name a few, it was our lack of planning, that we weren't on the same page, our constant unnecessary spending...
So, what was the answer? The budget.
I know, I know. Nobody likes the dreaded budget. Most people think the budget is restrictive, telling you what you can't spend. I was hesitant at first too. Zach was the one who wanted to make a budget. I resisted for years!
When I finally gave in and let Zach make our first budget, I realized quickly how liberating it really was. I saw that the budget wasn't restrictive. Instead, it gave me control and power over our money. The budget showed me very clearly where the problems were.
The problem was our unnecessary spending. We gave in to instant gratification with our constant Amazon purchases, coffee stops, fast food lunches, and so many more.
The problem was our lack of awareness with our finances. We had no idea where we our money was going. We had no idea how much we were spending at the grocery store, no idea how much those Starbucks coffees added up. Zach had no idea how his big purchases on hunting gear affected our finances.
As we began to plan with our budget, we were forced to actually talk about our finances. Not argue but actually have a productive conversation.
The budget taught us to plan ahead instead of constantly reacting to everything that came at us. It taught us a mindset shift. We no longer pay for the past. Instead, we plan for the future.
So, if you think the word budget is a swear word, I encourage you to just give it a chance. Commit to it for at least 6 months. You will learn what I learned. You will feel empowered and in control of your money for the first time. You will no longer feel guilty about spending because those new shoes were already planned in the budget. You will have permission to spend.
Starting a budget is not easy at first. It feels cumbersome and a little scary. But once you develop the habit, it will become second nature. It will be easy.
I recommend the EveryDollar budgeting app. It is by far the best budgeting app I have found.
If you need help getting started or need someone to hold you accountable, I'm here to help. You can book a free Discovery Session to see if financial coaching is a good fit for you.
You've got this!!
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