Budgeting And Becoming Intentional About Our Finances
What happens when we're not intentional in what we do? We experience random outcomes and many of them may not be what we desired. Without a specific aim or objective on a set of actions, the actions engaged upon could be a waste of time and resources.
Historically, I wasn't the organized type of person. I had a sort of a disorganized attitude that enjoyed going with the flow of things. Whatever happens, happens.
But in as much as it sounds a good way to live, it was actually counterproductive. Because it was more like floating in the air and going where the wind takes me, than walking on the ground. Structure is missing.
When it comes to finances, many people are hovering in the air, going with the flow without any aim or objective.
It's not like there is no dream or wish to be financially better but it is just a dream and no practicalities to achieve it.
Oftentimes, the dream is more present during financial hardships and easily forgotten when financial prosperity comes.
Budgeting Works
A budget is a financial tool that helps us track our income and expenses, and plan how to allocate money according to our financials needs and wants. Essentially, it's a way to cut our coat according to our size in a financial sense of the term.
In a way, budgeting builts financial structure and imparts good financial qualities like spending less than neccesary, saving more money and avoiding debt. These good qualities also have an element of intentionality through the awareness of aiming towards a certain goal.
For example, using that buy now, pay later feature to purchase a tech gadget will bring the awareness of getting into more debt that could impact future savings. The thought becomes is it a necessary spending?
In finance and life in general, awareness can be a turning point of change. The moment we start becoming aware of something, it stops being vague or obscure. And when it stops being vague or obscure, it can no longer influence us on the background with unawareness.
On a broader view, a budget can be seen as a tool that enhances our financial awareness, giving us the ability to be intentional in whatever we do financially. Be it earning, spending, saving or investing.
It's also the reason why it works as it creates a clear target to work towards achieving. However, we can't create a budget without planning. And we can't plan without having a goal.
Extended Execution Matters
Once we have a goal and a plan, creating a budget is not that hard. What's really hard is sticking to it. It's a process with repeated efforts that tends to get boring easily. Sometimes, it is also time consuming.
But for sufficient financial structure to be built, we have to stick to the process for an extended period of time. If you've ever heard of the saying that making money is easy, keeping it is hard. Then you'll understand that one of the reasons why it is hard is because one needs structure to keep the money.
After some hard work, fortune can fall on us and we make a lot of money. But if we don't understand much about finance, then that lot of money will be managed improperly and lost eventually. We lack the necessary financial structure to keep it.
It all comes back to awareness and sticking to the process for extended periods of time. We gain both theory and practical knowledge to handle all kinds of financial situations. It starts with being intentional with our finances.
Thanks for reading!! Share your thoughts below on the comments.
It’s not uncommon to hear people who have won lotteries but still died broke. Money has so many rules surrounding it. Most people think it’s only about getting the money until they get rich people problems after getting the money.
I’ve tried budgeting before, but defaulted to my random spending again. I’m going to try again but with awareness from my past mistakes. Thanks for sharing, man.
I always sigh in my mind when I hear those stories, getting rich and losing it, not being able to get it again till one becomes dead. There are indeed different aspects to money depending on the levels, it sometimes seems like a continuous learning process with experience and information we've gathered.
Mine is like a wave, I do it for a few months, stop a little and start again only to stop sometime after. I guess the 'flow of things' still have its effect on me but I'm determined to put my feet on the ground. Awareness of past mistakes is a good starting point.
Thanks for stopping by :)
A reason why people mismanage fortunes they never or poorly planned for. Thank you for sharing
Right, it's usually the reason for mismanaged fortunes. It is said that without planning, failure comes as a total surprise.
Thanks for stopping by :)
For long-term goals, I hold off quite well and stick to the plan but where I haven't been doing well is like a monthly expense kind of budgeting. I don't spend recklessly but it will be good to be intentional about budgeting. I am the type that pays less attention to the price of a commodity and compare it to how much I paid for it a few days ago, it is a bad habit.
Yes, those big and overview goals are not that hard to derail from. It's the short term ones that are the problem for me too. Keeping within the budget limit is not easy when things are constantly changing, sometimes I end up spending more either intentionally or unintentionally.
I don't think it is a bad habit, comparison helps in adjusting to the changes. I also hardly focus on the price especially when I trust the product/service.
Thanks for stopping by :)