Budgeting is Uncomfortable

Budgeting is like working out or dieting. It's not meant to be easy. When working out your body grows stronger with weight and resistance. Without resistance you will naturally stay at you baseline not growing stronger or fit. When dieting if you continue to eat at your baseline your weight will not alter. Change takes work. It takes effort. You cannot expect to gain muscle or lose weight without substantial shifts in your day to day life. If it was easy to gain muscle it would not be a billion industry. Constant visits to the gym or adjustment in meals. Budgeting takes similar effort. Everyone has their own baseline on budgeting with their typical spending just like they have their typical eating habits and workout routine or lack thereof. Baselines are comfortable. It is the natural state of all of us. In order to move one’s baseline, serious thought and effort is required. Step one is making a goal just like anything in life. 

Budgeting is like dieting, if you aren’t uncomfortable, you are probably doing it wrong. 

Moving One’s Baseline - Goals

Making a goal is step 1 to any change in our life. There are a few things you can do to increase the odds of being successful with any goal. Moving your baseline takes change and change takes goals.   

Writing down a Goal -  It is 42% more likely to achieve success. It makes the goals more concrete and tangible, which can enhance focus and motivation. The act of writing is a form of commitment. It signals to your brain that you are serious about these goals and that they are important. 

Tracking Progress - Seeing progress is hugely motivating and tracking progress can hold yourself accountable. You can review regularly to see how far you've come and what steps are still needed.

Visualization - Seeing your goals written down can help with visualization, which is a powerful tool in goal achievement. Visualizing success can improve motivation and confidence.

Effort

There are many diet and weight loss drugs on the market that are advertised as a quick and easy way to lose weight all with minimal effort. It is another billion dollar industry that preys on vulnerability and desperation of those that want the easy way. The workout industry is the same with false promises of 6 packs in 6 weeks. Anything good in life takes effort and cutting corners just hurts yourself. Budgeting takes effort just like working out and dieting (And Gardening).

Budgeting

Budgeting involves changing one's behavior and after setting a goal is actioning your decision. You cannot expect to save money if you continue to eat out the same amount or shop the same amount. Tracking your progress will help to call out yourself and bring you back down to reality. We will default to our natural baseline so it may take trial and error before a baseline will finally shift. 

Shifting Your Baseline

Every January thousands of want to be gym rats descend into fitness centers going hard hoping to make a meaningful change. But just like a thermostat set at 22 Celsius as a baseline, sometimes turning the dial up or down too quickly can shock the system, making lasting change less likely. Small changes have a few advantages over rapid change: it is more sustainable with reduced resistance and is more habit forming. 

Gradual Adaptation: Small changes are easier to adapt to and maintain over time. They require less willpower and are less likely to lead to burnout.

Builds Momentum: Achieving small, incremental goals provides a sense of accomplishment that can build momentum and motivation to continue.

Minimizes Overwhelm: Drastic changes can be overwhelming and may lead to resistance or a feeling of being overwhelmed. Small changes are more manageable and less intimidating.

Less Disruption: Small changes integrate more smoothly into your existing routines and lifestyle, causing less disruption.

Consistency: Consistent small changes help reinforce the new behavior until it becomes a habit. The repeated action is key to habit formation.

Behavioral Science: Research in behavioral science suggests that small, consistent actions are more likely to lead to lasting habits because they align with how our brains form new habits.

Slowly rising your theoretical thermostat is more comfortable. Baby steps cutting out small spending bit by bit. Daily coffees, breakfasts, lunches, food deliveries, whatever vices in spending you may have. 

Tracking your progress with a spreadsheet (discussed in Intro to Budgeting) can help to smack you with a dose of reality or let you know when you can let up and enjoy life a bit more. I recommend a Net Worth monthly tracker, but a weekly tracker might be better if you really want to stay on top of your spending. If you have a goal of only spending $1000 a month and you have only spent $500 with one week left to go, then spending can feel like a treat. But if you are already at $1200 spend with a week to go, then you really need to immediately cut yourself off. Whatever food you have in your kitchen you better learn how to make something with it. We are not always the best judge of ourselves, but numbers never lie. They will tell it to you straight. It takes ten minutes a month yet it can build confidence watching your goals slowly come closer and closer. Want to save $20,000 for a downpayment? Then set a goal and watch your net worth get closer and closer. Hopefully the numbers will be intoxicating, increasing your discipline and drive to maintain your budget.   

    

 

Budgeting is Hard

Budgeting is hard just like dieting or working out, but the rewards are worth the effort. It’s a skill that can be honed with dedication and perseverance. Remember, complacency leads to setbacks, so keep pushing forward, even when it gets tough. Don’t rest on your laurels and become complacent. That is how your baseline drops down. Don’t lose the ground you have worked so hard to gain.

You can't have your cake and eat it too

To succeed in budgeting, make a goal, write it down, track your progress, and visualize your success. Embrace small, gradual changes to shift your baseline and create lasting habits. Stay consistent and committed, and you’ll see the progress you’ve worked so hard to achieve. In the end, everything worthwhile takes effort. Relationships, careers, and personal growth all require dedication and resilience. Budgeting is no different. Stick with it, and you'll not only reach your financial goals but also build the confidence and discipline to tackle any challenge that comes your way.

So, start today. Make a goal, take baby steps, and track your progress. With persistence and effort, you can transform your financial future and achieve the stability and success you desire.

If you found this helpful and would like help budgeting or investing please email me at taylormckeecoaching@gmail.com