A Budget will give you a path to Financial Security and make you feel good

By Bob Peters || October 18, 2021

Budgets. Less stress. Financial Security.  Imagine if you were driving on the freeway and all of a sudden you lost your eyesight. You would likely have an immediate sense of panic and the fear of crashing would be all consuming.  Having a Budget is akin to seeing while driving your car.  A Budget gives you a line of sight to achieving Financial Security just like eyesight gives you the confidence that you will safely drive to your destination.

You feel less stress when you feel in control 

What is the definition of Spontaneous?  Merriam-Webster Dictionary gives two “Essential Meanings” of the word:

1) done or said in a natural and often sudden way and without a lot of thought or planning spontaneous laughter; a spontaneous kiss/decision.  The comment was completely spontaneous.

2) doing things the have not been planned but that seem enjoyable and worth doing at a particular time.  He’s a guy who’s spontaneous and fun.

Being spontaneous gives you a short term sense of pleasure.  Like so many other things in life too much of a good thing is bad thing.  Spontaneity in moderation can be healthy but taken to extremes it can be destructive.

Planning is the opposite of Spontaneity.  A Budget is a Financial Plan that estimates your income and expenses over a period of time.  Can I have my cake and eat it too?  In this case, Yes.  Can I have a Budget and still be Spontaneous?

Planning for Spontaneity allows you to do both! 

You first establish your Budget covering your Basic Needs and Investing Wisely, then you consider your Wants.  Your Wants are part of your Budget too; like a vacation, eating out at a restaurant, saving for a car or a season pass at a ski resort, saving for a down payment on a home, or saving for a backpack or snowboard.  

So what’s a Budget look like?

There are many websites that offer a simple budget template that you can download and play with.  A basic excel course will give you all you need to modify.  In the end, a piece of paper and pencil will suffice.  You can be both spontaneous and plan for Financial Security by establishing a Budget.  It will give you piece of mind, lower your stress and give you more control over your life.  Try it, you’ll like it.  If your income is not sufficient to cover your all of your Basic Needs, Wisely Investing for Financial Security and saving for your Wants, you will know your gap and look for ways to increase your income.  Continuous Learning and Education are great ways to increase your income potential. Take control and set up a Budget.  You will have a line of sight to Financial Security and have less stress.

One last thing…if you like to listen to podcasts, take a listen to Ramit Sethi’s “I Will Teach You To Be Rich” podcast (the link is to his presentation at Talks at Google but you can easily find his podcast.)  Ramit has conversations with real people, often couples, about money stress. Even though his podcast interviews often involve couples talking through their financial lives I strongly encourage single folks to listen.  Difference of opinions on money matters are often the cause of stress between couples.  Before you settle down with a life partner, listening to some of these conversations will help you put your head around future issues that could be avoided by good communication, mutual understanding and respect.  Getting on the same financial page before you sign up for a life commitment is a wise move.  All the best to you and yours.