Baby Steps, not Giant Leaps

Budgeting and Dieting

Budgeting is similar to dieting in that many people believe they will suddenly have large amounts of motivation they've never shown before. It’s easy to think that change will happen overnight—maybe at the strike of midnight on New Year’s Eve. However, sudden, drastic changes often lead to burnout. Going from never working out to working out daily is a huge shift, requiring time you’ve already spent elsewhere. Going from eating cheeseburgers and pizza to 800 calories a day of salads is extreme and a recipe for failure. When the novelty and motivation wear off, it's easy to say, "I missed my workout today, so why bother with the rest of the week?" Similarly, you may think, "I ate fried chicken—my diet's ruined," and end up bingeing on pizza. It's the same when it comes to budgeting. If you aim too high too fast, you're setting yourself up for failure.

When budgeting if you're currently saving $0 a month, don’t expect to magically start saving $1,000 after your first budgeting session. The discipline will likely be hard to sustain, and if you go over budget, it becomes easy to stray further. Instead, aim for achievable goals that stretch you—not too high, not too low. The best predictor of your future is your past. If you haven’t shown discipline with your finances before, expect to struggle in the future. But don’t worry—people can change over time.

Change Happens Slowly, but Progress Builds

Change should happen gradually and constantly. Start by saving $50, then $100, and so on, until you’re eventually saving $1,000 a month. Habits form over time, and progress doesn’t always need to be a straight line. It can fluctuate—$50 one month, $150 the next, then back down to $80. But as long as you keep wiggling upward, you’re on the right path. The key is consistency over improvement. If you want to take giant leaps, wait until you've built up at least 6 months of consistent habits first. This way, if your plan falters, you’ll have a solid foundation to rely on.

Just like when starting a new hobby, you shouldn't immediately invest in the most expensive equipment. When learning guitar, for example, start with a beginner’s model before upgrading to a better one after consistent practice. This saves money in case you lose interest, and the same applies to budgeting. Start small and build up your skills before setting lofty goals.

Consistency > Improvement

Humans are creatures of habit, and like objects in motion, they tend to stay on their current trajectory. You naturally want to keep buying the same things each month, go to bed at the same time, and eat familiar foods. Overcoming this rhythm takes effort, like steering a cruise ship—it’s hard to change direction once you're in motion.

This ties into a key concept: budgeting is a lifestyle, not a quick fix. Just like crash diets aren’t sustainable, budgeting should be a long-term, ongoing process. As your income grows, you may be tempted to increase spending—this is known as lifestyle creep. Ideally, you should maintain the same spending habits and save the extra income. But when you spend 100% of your income, even a raise won’t help you save more; it’ll just mean spending 100% of a larger income.

Reward Yourself Responsibly

One important aspect of both budgeting and dieting is making room for rewards. Just like a cheat day in a diet, a budget should leave space for small indulgences. If you meet a savings goal, allow yourself a treat within reason. This prevents burnout and keeps you motivated in the long run. It’s not about being overly restrictive but about creating a balance that’s sustainable. There is no point to strictly sticking to a budget if you are going to completely not follow it in a month or two. 

Budgeting as a Lifestyle, Not a Quick Fix

Budgeting, like healthy eating or exercise, isn’t just something you do for a few months and then stop. It's a lifestyle change. Developing strong, consistent habits over time is more important than aiming for instant results. You won’t become a budgeting expert overnight, just like you won’t lose 50 pounds or gain a six-pack in a day. The goal is to start slow and build on your progress.

Avoid Comparisons

It's also essential to avoid comparing your financial progress with others. Just as people have different fitness journeys, everyone has different financial circumstances. What’s important is that you’re on your own journey, making gradual improvements. Your only comparison should be to your past self.

Expect and Accept Setbacks

Change can happen, but having realistic expectations will help you consistently stay on track. Start small and build your goals over time, using setbacks as learning opportunities rather than reasons to give up. You need to walk before you can run in life. Sometimes you will fall, but that just means you need to get back up. 

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