Budget or Lose It
If you enjoy budgeting and you know it, clap your hands!
Did you clap your hands? I didn’t either. I bet most people would say they don’t enjoy the idea of budgeting or managing their finances regularly.
I have heard many people say they don’t enjoy budgets because they’re boring and restrictive or they can’t seem to stick to it for long.
But, as the saying goes, “money doesn’t grow on trees”, so creating and regularly using a budget is a necessary and important part of life.
What is a budget?
We’ll start by giving a standard definition of a budget from Investopedia:
An estimation of revenue and expenses over a specified future period of time that is re-evaluated on a periodic basis.
Now, let’s break that down a little more:
A budget is the act of assigning a specific purpose (spending and saving) to every dollar you earn (revenue). This should be done regularly (at least monthly) and reviewed to account for anything new.
Whether you do this with pen and paper, or you use a fancy app that comes with all the special features you could want, it’s less about how you do it and more about just doing it.
The benefits of using a budget
Now that we know the basics of what a budget is, let me share some of the reasons a budget is important.
Less stress
Have you ever felt a pit in your stomach after looking at the current balance for your bank account and realizing you don’t have enough to cover your expenses until your next paycheck? It’s an awful feeling. When you budget your money before you spend it, those unexpected surprises start to go away.
No more impulse buyer’s remorse
Impulsivity is a common symptom for most ADHDers. It can sometimes be hard to say ‘no’ at the checkout counter. Online shopping makes it even easier to be impulsive when all you have to do is push a button to buy something new. But, when you plan ahead with a budget, you have already decided where all of your money will go. This is a friendly reminder to your impulsivity that, even though you really want it in the moment, that last-minute purchase wasn’t a part of your budget. Besides, you didn’t really need that blanket that looks like a tortilla, anyway.
‘Future You’ will thank you
Whether you're 25 or 65, it’s important to think about the future. From buying a house to needing new tires for your car to leaving the workforce to start retirement, these are all things that cost money and you should consider when planning your budget. Just think about how good it will feel to put a down payment on your first house or pay for the leak in your roof and not have to worry that you won’t have money left to feed your family.
Learn more about the benefits of managing your finances
On a recent episode of Taking Control: The ADHD Podcast, Pete and I sat down with Certified Financial Planner™, David DeWitt. He specializes in working with adults with ADHD to learn healthy habits around money.
Listen to the full episode wherever you get your podcasts, or by clicking the link below:
Ep 2518: Fighting Impulsive Spending for Your ADHD Holiday
I hope this conversation about budgets encourages you to consider the positive benefits that regularly using a budget can have on your life today and in the future.
Thank you for your time and attention,
-Nikki
