How Budgeting Has Changed My Life & Why You Should Budget Too

Let’s talk about budgeting - wait! Don’t run away! Trust me, the word “budget” may sound scary, but guess what? It doesn’t have to be. Look at budgeting as simply another goal in your life. That’s exactly what budgeting is: a plan or goal for where your money is going to go.

Budgeting starts with organization. Once you start to gain knowledge over where your money is going, and what you’re doing with it, you start to take back your power. I always say that knowledge is power, and this is no different. Sometimes it can be very scary to know what your credit card balances are sitting at, but once you know, you can start doing something about it.

I started on my budget journey about three years ago. I started with the Budget Planner from Alaina at the Organized Money. While that worked for me at the time (it was a cheaper option at the time), I was really interested in the Budget by Paycheque workbook by The Budget Mom (Kumiko Love on Youtube). I purchased the PDF printable version for my first year using that method, and I was so happy I did.

Since using the new system, I’ve had my ups and downs over the last two years. There was a definite learning curve to filling out the workbook pages at the beginning. When you work with a lot of numbers, it’s easy to make mistakes. Even today, I find myself using my workbook differently than I did at the beginning.

I was one of those people - afraid to look at my finances in fear of what I’d find. No, it wasn’t a monster under my bed, but it was a ton of debt. There was one year (I still hadn’t paid off my vehicle yet) when my husband lost his job and we literally had no savings to turn to. Employment insurance covered not even a quarter of what our income was prior. I had made calls to every single bill company, including the bank and the utility companies. We were really down the creek without a paddle. I remember crying every day, wondering how we were going to get though. But guess what? We did. I started taking over bill and payment management for us as a family, and that’s technically when my budgeting journey started.

Paying off credit cards has always been a struggle for both of us. It’s just so easy to use a credit card when you want something. Then, looking back, you write off the purchase as something you needed, so you had to buy it. Now, I’m not saying that having a budget limits you, but, if you are struggling with finances and you are finding it hard to buy the necessities, you might need to take a good strong look at your spending habits.

Tracking your expenses is one of the most important parts of keeping a budget. It’s sort of like keeping a food journal. Even though you know what you buy or eat when you go to do it, you tend to forget about it and don’t realize how it all adds up at the end of the day. Tracking your expenses lets you see, on paper, what you’re spending on a daily basis. It can be a pain, sure, but it’s right there in glaring sight and you can’t hide from it.

An important point here is that it doesn’t matter how much money you make, it’s still important to have goals for your money. Maybe you’re on a debt payoff journey, like myself. Or maybe you want to take a vacation to the Bahamas. Either way, you need to know how much money you have left at the end of the day to pay for things that you want.

I think for me, budgeting has definitely given me a sense of empowerment. (Ironically, my word for the year is “Empower” because I do feel more in control of my life). I feel more secure in the knowledge that I know what’s going on and I can make decisions for us as a family based on that knowledge.

This has probably been our most eventful summer to date because we saved money to be able to do things. We went to our local fair (which we all know is a money grab, but the kids loved it). We were able to see my family at my Norwegian family reunion, all of whom I hadn’t seen in six years. We have also been able to go camping twice, which was an interesting experience.

I feel good because I know that I’m saving for things that are important for my family. I know that I can take my kids swimming, because I budget a certain amount for gas every week. I know my kids will have clothes on their backs because I have set up a sinking fund for clothing.

The funny thing is, the more debt I pay off and the more I save every week, the more positive I feel about all of it. I get giddy every time I add money to my sinking funds. It’s almost the same feeling as buying something I really want. It’s better though, because instead of spending money, I’m saving money.

I think one of the issues with starting a budget is that people don’t know where to begin. I think it’s important to start positive habits. For instance, when bills come in (if you still receive paper bills in the mail), keep them all together in one place. Sort them in order of payment date if you have to. (Keeping them organized on a monthly calendar is perfect for knowing when to pay your bills). Writing down all of your financial responsibilities is also a good place to start. You might have the obvious ones, like mortgage/rent and utilities, but you may also have child care expenses for instance. Even purchasing an expense planner such as the Budget by Paycheque Workbook is a good start, but you have to actually start using it. It won’t work for you if you don’t put the work in first.

I hope you enjoyed today’s article! Let me know your budgeting challenges in the comments!

🧡 Sandra