Budgeting with a Purpose

I am now drafting my August budget. It’s never too early; I am just staying on course.

Rule of thumb: I create a budget before I spend. My budget is my spending plan.

Creating this ahead of time is the most crucial foundation to achieving my financial goals as it provides visibility, structure, and most importantly, it enables me to have full control of my money.

I don’t do percentage-based budgeting in achieving my goals. For example, DR’s method is 10-15% on food, 25-35% on housing, 10-15% in savings, and 10-15% on charitable giving. I never restrict my budget based on percentages. This works fine for some though.

I am a strong advocate of zero-based budgeting. It works perfectly for my family. I want to cover all bases on the grounds of personal preference and comfort. It is solely based on our family’s needs and priorities. I can talk more on the whole process in my future posts to walk you through on how I do this. 

For a beginner, budgeting can be very challenging. The biggest challenge is prioritising which categories are most valuable. One must be able to identify the specific goals, may it be long-term or short-term; your money is only a tool to achieve these goals.

Myth on budgeting

Some people think that creating a budget and laying down the spending plan limits their freedom. They feel “constrained” from doing what they want.

The truth

On the contrary, a budget gives you the freedom! You have a clear picture on what to do with your money; hence, giving you that sheer advantage. It gives you the permission to spend your money without feeling the guilt or any ounce of regret.

Please do not be afraid to “live on a budget.” It will not rob you of your happiness; it is merely giving your life a purpose. You will love it when you learn to internalise and embrace that you have so much more than you realise.

Overall, it’s giving every single dollar a job! 

Since I started my journey to financial peace, it has totally altered my relationship with money. It’s not stressing me out at all; I feel excited on how I spend it as I have become more intentional with money. I know where it is going and why exactly I am spending the way I do.

1 thought on “Budgeting with a Purpose”

  1. Oh my! Before I read this I already commented on your post and guess what? The things that I said on my comment and what I’m thinking is exactly the same as what’s written here. We really are on the same boat. It’s easier for me to budget using ZBB and that budgeting really makes me happy and excited. I’d glady do this my whole life because thank God as of now I still have something to budget. I just don’t know what will be my mindset once I’ll lose my stable income. Hahaha. (but I hope before that happens I have already prepared for it).

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