There’s an item that you want to buy. It seems to be a reasonable price for what it is, and you’ve been wanting one for awhile. Can you afford it? Would your spouse be okay with you spending the money on it? How much can you afford anyway?
It seems like having these questions leads to one of two types of people. Either you spend the money because it’s a good deal and later don’t have enough for groceries or you don’t buy it because you think you may not have enough money for it and you later regret the decision.
So how can you know for sure? How can you feel both confident and free in your spending decision?
Simple. Set up a budget system.
Before you start to feel all enslaved and uptight, hear me out. Budgeting is actually extremely freeing, and here’s why:
- You can feel confident that the bills will be paid. No question.
- When you spend money, you don’t have the anxiety of wondering if you can actually “afford” it
- If you’re in a relationship, the money discussion happens UPFRONT. If you decide that each partner gets $100 to shop with this month, you don’t have to argue later when one of you spends the hundred dollars on a samurai sword or a single bottle of perfume or 25 trips to Starbucks.
- You can use your money for good by planning ahead to donate to something you care about, instead of realizing at the end of the month that you don’t have the money for that donation
Rather than feeling like setting up a budgeting system would be constraining, recognize that it can actually be freeing and even enjoyable. No matter which stage of life you’re in (single, married, retired, whatever), setting up a budgeting system that works for you can really change your life.
Want to know how to set up a budgeting system? I’ll be sharing what works for me in Thursday’s post. Sign up here to get it in your email inbox!
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