In love with budgeting! :-)

I know this sounds very strange. How about me telling you that I love spreadsheet? LOL!

The answer is a sense of control in this messy and crazy world. Control comes from awareness.

I started to keep a budget when we got a mortgage soon after 08/09 financial crisis.  Our goal is to pay it off ASAP because the foreclosure stories in the news were very scary. It feels like a big heavy sharp knife hanging over my head! With a budget, I know exactly how much extra payment I can make toward the mortgage. I maintain a mortgage payment monthly forecast and tracking sheet. I know exactly which year ad month I can pay it off if I keep at it. This gives me clarify and motivation. It feels so good to see the mortgage balance going down every month.

With both the budget and mortgage tracking sheet, we paid off our mortgage in 7.5 years.  It is such a relief! I feel the shackle around my neck is broken. 😊 Now you know why I am so in love with budgeting. It is a powerful tool that can set you free.

These days, there are many free budgeting apps. However, nothing is really free in this world. They make money from your personal data. Purchasing behaviours of consumers are gold mines for advertisers and companies who want to sell stuff. Actually, you can just use a spreadsheet to track your expense and income and store it in your computer if you want to protect your privacy. There are many free templates out there.

A budget is better than no budget, generally speaking. I know many can do just fine without one. However, if you are a bit concerned of your spending or you want to save up for a vacation, a house, or retirement, it makes sense to have more accurate knowledge of comes and goes of your money.

With it, you will know how much every month you can put towards an emergency fund, high interest saving account for a down payment, extra payment towards mortgage, or RRSP/TFSA. If you have a deficit in the end of the month, you really need to look into where you can cut the expense. The budget can help you with the analysis so that you are not in the dark.

Budgeting is the foundation of your financial well-being. Anything and everything of your financial security and freedom is built upon it.

I understand it is difficult to change behaviour or build new habit. The key is to start small and take one baby step at a time. The first step is to download a budgeting template or a budgeting app. The second step is to input your expense of last month. If you don’t want to breakdown the expense of credit card, that is fine. It is important to make it easy when you start a new habit. In the future, you can look into the credit card expense when it is necessary. One thing I use to motivate myself is to keep a positive journal by writing down all the steps that I accomplish every day. You can also write down what you plan to do tomorrow and keep doing it regularly.

Have fun budgeting!