How to create a budget without skimping on joy

When you have multiple bank accounts, credit cards, and random bills stashed in wallets and bags, keeping track of where your money is going can quickly turn into a full-time job.

But you need to make sure that you have enough funds to meet your financial obligations or achieve certain goals. Not tracking your expenses is also risky to your financial security. Case in point: a reader of mine who recently lost over S$4,000 when her credit card was hacked.

One thing is for sure: if you hope to achieve financial freedom, you need to learn how to set a budget and stick to it.

BUDGETING IS A KEY LIFE SKILL

In a book designed to help him prepare for elementary school, my son wrote, “I will learn how to spend money.”

I laughed and gently told him that no one needed to learn how to “spend” money—he needed to learn how to budget instead.

Most of us probably first encountered this in elementary school. Remember how your parents gave you pocket money every week. How long did it take you to realize that if you spent all your money on snacks or toys on Monday, you would have to starve for the rest of the week?

These early experiences taught us to prioritize, plan, and save money for the things we really wanted (in my case, my favorite storybooks).

Budgeting isn’t all that different for adults, but the “B” word doesn’t always have a positive connotation.

Many people seem to think it’s about being stingy or giving up the things we enjoy. We resist the idea of ​​giving up our favorite foods or giving up fun weekend outings with friends.

But budgeting doesn’t mean depriving yourself. It’s simply about having a plan and making conscious decisions about our money and what’s most important to us.