Find your financial purpose
While there are many reasons budgets fail, having a personal budget that is effective will go a long way toward helping you develop a better relationship with money so that you can enjoy a healthy financial life. Regardless of how much money you currently make or how much debt you have today, it is important to make a personal budget work for you.
Reasons budgets fail
For a budget to work, it must be realistic.
- A budget that restricts you from leisure activities and hobbies is not a budget that will give you an opportunity to have fun. Find ways to include money in your budget to do the things you enjoy.
- A budget that is not inclusive of all expenses or not adjusted for life changes can leave you feeling overwhelmed. Adjustments to your budget should be made to account for future events and will be needed as income or expenses change. Getting married or divorced, moving, changing jobs, and having children-all impact a budget.
- Failure to monitor spending habits can also wreak havoc on a budget. Effort must be given to follow a budget and to track spending periodically. Knowing when to stop spending is essential to making a budget work for you.
Solutions to help your budget succeed
Having a sense of control over your money can bring peace to your financial situation.
- Are you looking to save up for a new car or a new house or a retirement goal you want to meet? Establishing financial goals that are achievable are more likely to be realized when you work within your budget and track your progress.
- Some individuals may find a spreadsheet to be sufficient for creating and updating a budget while others might find a budgeting app to be more helpful. The budgeting tool that will best serve you is one you will actually use.
- Sharing your budget with a close friend or family member can also help hold you accountable. Simply talking to others about your budget and having them check with you on your progress can help not only you, but also improve their understanding of finances as well.
Real life with a budget
Don’t let fear hold you back from taking the first step to finding purpose in your spending.
- Aligning your finances and spending with a purpose can enable you to recognize and align your life with the things you care most about.
- Living with a budget is equivalent to being intentional with finances. And intentional financial living can push you to consistently take actions that are important to you and who you are.
- Every day is a day to practice living out your financial purpose. Now, go and get started!
Need a jumpstart to your financial literacy journey? Alpine Bank’s Mind Your Money program is a free financial education tool that provides critical knowledge on topics such as money management, owning a home, preparing for retirement, and building financial resilience.
About This Author
Alpine Bank Staff
Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.
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