Strict Budgets Don’t Work
Strict budgets are similar to strict diets, sure in the short term they may work, and even provide great results! Lose 5kg in two weeks how amazing! However with those diets, those results never last long. Eventually you’ll crack, and then the flood gates will open. You will have a cheat meal that turns into a cheat day that turns into a cheat week, and suddenly, you weigh more then when you started. A similar thing happens with strict budgets. Sure, you may start of saving really well, but no one can live that frugally, and even if you could I’m not sure why you would want to. Life is there to be lived and enjoyed, and you want a money system that reflects that. That’s why I don’t believe in budgets, however I do believe in having an idea of where your money is going and keeping your spending inline with your own personal values.
How I Organise My Money
The way I like to approach my money is to be aware of what I spend and allocate my money each week. I have automatic transactions set up weekly so I don’t have to think about it and I don’t have the urge to spend any extra. Each dollar has been assigned before I have even received my pay. I also allow myself a certain amount of spending money each week. It isn’t exorbitant but it also isn’t tight, so it makes me feel like I have enough there to enjoy myself with without feeling constricted. It is a great system that works for me and I encourage you to give it a go. This works especially if you have a savings goal. You won’t know how long it will take to reach your goal if you don’t know how much you are spending or saving a week.
Free Cash Flow Plan & Guide
I have created a little cash flow plan & guide that you can use to sort out your money! It is free to download and includes a guide as well as a CFP PDF. Print out the PDF so you can fill it in as you read through the guide. Download it, give it a go and let me know what you think.
Still confused about the cash flow plan? Watch the videos below to see step by step how I used the plan!
How to fill in the PDF:
How to organise your bank accounts: