Introduction
The thought of creating or monitoring a budget seems like such a huge task to overcome. We either don’t feel like exerting energy into doing it, or we’re scared of what we’re going to find.
You’re someone who works hard, earns well, and wants to be responsible with your money… which is why it feels confusing when the numbers don’t reflect that.
I like to compare a budget to the big scary shadow that might have been on your wall when you were a kid. From a certain angle, that shadow looks intimidating, but when you finally get to the source, you realize it’s just the light reflecting off the pile of clothes on your chair.
Your cash flow is kind of the same thing. We think we’ll be horrified if we finally look into it, but when we do, there’s actually a breath of fresh air that pulses through us. It may not be fun at the moment, but you’ll be glad you did.
Why People Avoid It
You know those videos of dogs who very clearly ripped through the pillow, and are staring at the wall as opposed to looking at their owner. The dog knows they are guilty, but they do not want to make eye contact.
We do something similar with our finances.
There is a term known as avoidance coping, where you know something is off, but you put off confronting it because it could trigger stress, guilt or shame. While it might feel fine in the short term to avoid the problem, it will only lead to long term anxiety and added stress.
That guilt is normal to feel, and until you peel back the curtain, it will always linger there. Money is much more emotional than one might think, especially because it’s involved in almost everything we do, so we continue to bury the problem until one day it becomes too big to handle.
If you want a guilt-free conversation about your finances, schedule a free introductory call to see how our services can help you feel more confident with your money.
What Actually Happens When You Look?
When you finally take the chance to look and assess where your money is going, a few things happen:
- “Yeah I know this was more than it should have been”
- “I don’t regret this purchase”
But there will probably be a few where you pause and think:
- “Wait, why am I still paying for this?”
- “These shouldn’t be here”
This is the moment we are looking for. Awareness
The Relief of Re-Allocation
When we realize that there is all this money slipping through the cracks, we can take action and begin to be more intentional.
Cancelling unused subscriptions, adjusting spending, cleaning things up… it all suddenly frees up money.
Whether it’s an extra $50 or $500 a month, those funds can now go where you want them to go. If you were always struggling to put money in savings, now you can. Maybe you wanted to get the premium massage instead of the basic, now you can.
It’s not about limiting or restricting yourself from doing the things that you want, it’s about making sure we’re cutting the waste out of the picture and being in control of the decisions we are making.
How Clarity Creates Confidence
You’ve probably heard the term “look good.. feel good” and the same goes for our money. When our finances look organized, we feel like we have control, and it boosts our confidence. This can create a domino effect where every action you take moving forward feels empowering to you.
There is no more hiding in the shell because we’re scared of what our finances will reveal.
This isn’t something you have to figure out on your own. Sometimes it’s easier to walk through it with someone who can look at it objectively with you.
Disclosure
This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. No advisory relationship is created by reading this article. Investment advisory & financial planning services are offered only pursuant to a written agreement through Noor Financial Services, a Registered Investment Adviser. Please consult with a qualified professional regarding your specific financial situation.
