Three Ways Budgeting Our Money Actually Makes Us Richer (Part 3)

#3 Money becomes a tool that allows us to save for what we want.

Once we know how much we are earning and how much we are spending, then the fun can begin! We have become the masters of our destiny by deciding beforehand where we will spend our money, and actually spending according to plan – or as close as possible. This opens up the door to begin dreaming about the things we have always wanted, but never thought we could afford. Once we create a line in our budget for dream X, Y or Z, then that dream begins to become a reality. Perhaps we can only afford $1 month to begin saving for the dream, but that dream now has a seat at the table. 

By having a seat, something magical happens. Suddenly, the extra $5 or $10 being spent on whatever else, is easily sacrificed to be able to fund an extra $5 or $10 toward the dream. Priorities shift and we find ways to get more of what we want by spending less on what we don’t want as much.

This is the stage where all sorts of tricks can come in handy. There are two tricks frequently used with success — pre-loading money onto different cards with terminating balances or putting cash in different envelopes for different budgeting categories. Doing so can help stop ourselves from overspending on the mundane to truly save for the important. The important is whatever we deem it to be, whatever dream X, Y or Z is. The result is the overwhelming feeling of happiness when we meet our first goal. We quickly find the feeling of financial empowerment intoxicating and we can decide to list the next dream on our budget to begin funding it. 

To recap, budgeting makes us richer in at least three ways. We know how much money we actually earn, we know where all our money is going, and our money becomes a tool to save for what we truly want. 

-Written by: Financially Fit Me Founder Kimberly Greenman-