Budgeting… So often thought of as an incredibly boring waste of time, budgeting is, unfortunately, essential to all people who wish to retire free and independent. I mean normal retirement, by the way, budgeting is important whether or not you want to retire early.
But why is it such a pain?
It’s not, it’s the way you budget that can be problematic. Naturally, if we are obliged to do something we hate or find boring, we won’t necessarily be interested in giving it our all. That’s the problem, not just about budgeting, but about being productive in it’s entirety. We have to break the habit of succumbing to our lack of motivation. You create your own drive. In any case, budgeting doesn’t actually have to be boring.
But how do you make budgeting actually easy?
Simply put, stop overcomplicating it. Nobody said you have to budget every singular expense you plan to execute. Budgeting can be incredibly easy and efficient by separating your total budget into larger portions rather than small, specific ones. For instance, say you have a $4,000 dollar budget for this month, firstly, you likely want to subtract your bills from it. Ideally, you would have no debt on your credit card. Let’s say after bill and debt payments, you’re left with $1,500 for the month. Let’s say $1,000 of that goes to food and essential items for your family, you’re now left with $500 to spend freely. I highly recommend saving or investing most of that $500.
Keep in mind, though, that if you’ve got credit card debt especially, prioritize paying it off, even if it means cutting your leisure expenditures drastically, it’s absolutely essential not to simply pay the minimum payment as the total amount spent on the credit card will be drastically higher than it should be. Pay off your credit cards, completely. Use the cards and build a good credit score, but treat them somewhat like debit cards with an extra step.
The reason budgeting is such an issue to so many people results from the idea that every little expenditure needs to be individually calculated, although the latter example is obviously oversimplified, the principle is the same. All that really needs to be calculated is the total debts to pay. Note that I do recommend being conservative and anticipating unexpected expenditures.
Budgeting isn’t a chore, it’s a tool to help you achieve financial independence.
If you’re interested in starting your journey to financial independence and success, I highly recommend picking up Rich Dad Poor Dad, here’s an affiliate link to purchase it on Amazon, you would be supporting me too!
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
If you’d want to learn more about achieving goals and fighting a lack of motivation, I highly recommend Grant Cardone’s The 10X rule, please feel free to purchase it using this Amazon affiliate link in order to support me as well!
The 10X Rule: The Only Difference Between Success and Failure