Budgets: Shifting from Fear to Empowerment

Let’s talk about the emotionally loaded B word, budget. Just saying the word "budget" can bring up a lot of complicated thoughts and emotions for people. Even I feel intimidated by the word. But why is that? And how can we redefine budgets to empower ourselves financially?

So, what actually is a budget? In its simplest terms, a budget is a plan for the coordination of resources and expenses. It's a tool that helps individuals and households manage their finances. But somewhere along the way, budgets have become associated with restriction, deprivation, and control. We fear that creating a budget will take away our freedom and force us to give up the things we enjoy. This negative perception of budgets is deeply ingrained in our culture.

When you search for the word "budget" online, your eyes will most likely go crossed. You’ll see a page full of all different types of budgets from the envelope budget, the zero-based budget, the 50-30-20 budget, the 80-20 budget, pay yourself first, and many more. The sheer number of options can be overwhelming for someone who is just trying to gain control over their finances.

Why are we afraid that paying more attention to our money will take away our freedom? We have this belief that being conscious of our spending habits equates to no longer having the financial freedom to spend money on fun things because we have to be more responsible to reach our goals. This black-and-white thinking leads to shame, guilt, and a lack of trust in ourselves when it comes to our finances. We start to believe that we have no willpower or that there's something inherently wrong with us because we want to spend money on non-essentials. This mindset is not only harmful but also counterproductive to our financial well-being.

The parallels between our perception of budgets and diet culture are insane. Just like the word "diet," budgets are emotionally charged because of the associations and meaning we assign to them. Both are seen as tools of restriction and control. If we don't adhere to them perfectly, we blame ourselves and feel like failures. That we can’t be trusted around money or food. But what if we could redefine the word "budget" and remove the negative emotions attached to it?

To shift our mindset, we need to explore our emotional obstacles and understand why we have such negative associations with budgets. When you think of the word "budget," what feelings come up? Is it shame, guilt, overwhelm, or anxiety? Naming and understanding these emotions is the first step towards redefining budgets as emotionally neutral. We need to let go of the punitive mindset and embrace a more compassionate and empowering approach.

Letting go of control is a crucial aspect of redefining budgets. The need for control often stems from fear, the fear that our underlying needs and desires won't be met. But what if letting go of control actually gives us more control? When we obsess over the details and try to control every aspect of our lives, we become overwhelmed and stressed. By trusting that everything will be okay and relinquishing the need to know the "how," we find mental peace.

Redefining budgets should be about awareness, understanding ourselves, and empowering ourselves financially. I’m not telling you to screw budgets!  It's about dreaming and intentionally determining how we can achieve those dreams. Budgeting is not just about paying bills and meeting obligations; it's about planning for the things that make us happy. We often get caught up in the day-to-day grind and forget to prioritize our own enjoyment.

Living life on our own terms is the ultimate definition of freedom. Budgeting should be a tool that helps us achieve that freedom. It's about taking intentional steps toward our goals and aligning our spending with our priorities. We can start by identifying what we want in life and breaking it down into small, manageable steps. For example, I’ve never been to Hawaii and I really want to visit a pineapple farm. So, I created a pineapple farm savings account and started putting $20 a week in that account. 

Budgeting is not about rigid rules or external control; it's about taking control of our own lives and finances. It's about planning for the future while still enjoying the present. It’s living life on your own terms and controlling what you want in life, and that’s the freedom I want all of us to find. 

If you’ve enjoyed this blog, check out my podcast, Money Isn’t Scary where I help people overcome their fear and negative associations with money by empowering individuals to take control of their finances.