Episode #28 Establish A Budget

Three Problems

• We often view budgets as restrictive, even though they could lead to our financial freedom.
• Spontaneous and in-the-moment financial decisions rarely produce as positive results as intentional and premeditated financial decisions.
• Failure to choose a budget today may lead to a situation where an even tighter budget is necessary tomorrow.

Three Principles

• Tracking our finances helps us to understand reality, and reality is always our friend.
• Debt may not be entirely avoidable, but it is always reducible.
• The financial dimension is connected to every other dimension of life.

Three Practices

• If submitting to strict dollar amounts feels overwhelming, begin by creating rules such as “Eat out only once a week” or “Go to Target only once a month.”
• Begin tracking every dollar you spend this month, and identify choices you can make that would reduce next month’s spending in each category.
• Set aside money dedicated for recreational activities so that you can engage in those activities guilt-free and anxiety-free.