Understanding the Difference and Budgeting Better
There are a couple things that make it tough to talk about money with others.
First of all, we all have different priorities.
Even if we all made the same amount of money, we’d spend it differently. And guess what?! That’s how it should be! Your budget and how you spend your money should align with your priorities. As a result, what someone else views as a “good deal” on something they value may seem like a complete waste of money to you. The important thing here is to remember that it’s THEIR choice on how to spend THEIR money. Just as you wouldn’t want someone judging you for a purchase, make an effort to do the same with others.
The next interesting thing when it comes to talking about money with others? Only we know the full picture when it comes to OUR budgets.
I can’t tell you how many times people have told me that I could MOST DEFINITELY afford a purchase that I was declining.
Here’s the thing though… Being able to buy something is much different than affording it.
The key to knowing what you can afford? Budgeting!!
I know, I know… maybe not the most exciting answer. But in all seriousness, a healthy budget including an emergency fund, sinking funds, and a system to give your money purpose will change your life.
And when I say I can’t afford something, what I actually mean: It’s not in my budget. In other words, it is not a priority to me right now or if it is, I am still working on affording it on my own terms and at my own pace.
People associate “I can’t afford it” with being broke. It’s a misconception that just because someone isn’t willing to pay the money that others are willing to pay means that they don’t have that amount of money available to them.
For instance, I’m working on having a six-month emergency fund. While I’m not quite there yet, there are two things happening: 1) I have a line item in my budget to keep beefing it up and 2) I have a decent chunk of money on the side in case of an emergency.
Could I use this money for something else? Could I ignore my monthly line item and spend that cash instead? Sure. However, that wouldn’t be a smart money decision.
Just because you CAN buy something does not mean that you SHOULD.
And that’s exactly how I feel with my emergency fund money… Just because it’s there doesn’t mean I should spend it. It’s what will keep me from unwanted debt in the future.
If you spent your money according to how everyone else wants you to, you’d likely end up broke and miserable.
No one knows your financial situation like you do. Don’t let anyone tell you what you can or cannot afford. You can’t say yes to everything, so make sure you say yes to what YOU value and afford what you value on your terms.
Not sure where to start with budgeting? Message me or apply for money coaching!