The “B” word

When you hear the word “budget”, what does it bring up for you? Does it incite feelings of shame? Does it make you feel like perhaps you need to be doing something better? Or, maybe like you’ve been doing something wrong with your money? In the past when I would budget, it was because I was feeling inadequate around money. It would be a response to an embarrassing experience where I didn’t have enough money to cover an expense. Something unexpected would come up and I would be unprepared for it. I would panic and then try to budget. I would set arbitrary amounts I could spend on various items. I would go on spending freezes just until my current problem resolved, and then go back to my previous ways, the same stress and shame carrying on. Have you had this experience? 

What if, instead of thinking about a budget as something negative, or shameful, or used as punishment, we think of it as a spending plan. We can reframe the way we talk about and conceptualize budgeting. Budgeting is akin to your calendar for work. You likely rarely start your workday without some, at least vague, idea of what you will do. You schedule meetings, you know when you’ll have lunch, and you might do certain work in the mornings and certain work in the afternoons.  

For a lot of people though, there is no such plan when it comes to money. 

When you create a spending plan, you decide exactly how you want to spend your money. You do it before you spend it, and you make a realistic plan. It’s a plan that captures those things you need, such as food, water, and shelter, and it gives you guidance on how you can spend your money on wants. It gives you a framework.  With a spending plan, there is no shame attached. You use your spending plan to anticipate those expenses that used to be negative and to plan for positive ones. Instead of experiencing shame, you will feel empowered. You decide beforehand exactly how you want to use your money and because it’s your plan, you can feel confident sticking to it. 

A “budget” and a “spending plan” are synonymous, but if the “b” word makes you feel bad about yourself, don’t use a budget. Choose something that excites you, that focuses around your goals, and that empowers you to create the life you want.