Today I’m going to write about what’s better, budgeting, or creating a millionaire money blueprint.
How does it make you feel when you have to budget? How does it feel to plan a millionaire blueprint? From my experience not many people like budgeting as it makes them feel limited. There have been studies done by Gallop who found two-thirds of Americans don’t even create one. (maybe that’s a reason why there’s so much debt in America.) There’s a Forbes post who state that budgeting doesn’t work.
Budgeting does work logically but humans are not always logical and emotional feelings get in the way of budgeting, dieting and new years resolution that fall away hours, days and weeks later. The reason why this happens is our approach and the words we use. This makes us dread the day we have to do it. But if you tell a person who wants to lose weight what they have to do instead of what they can’t do their mental approach towards burning calories changes.
This is the same for budgeting. For example, a couple wants to buy their dream home via mortgage but they need to raise x amount first. If you told them you have to budget for the next 5 years., how would that make you feel? Compared to if you said this is x amount you need save each month to be on track.
For me, one makes me feel I have to give up stuff to reach my dream and the latter makes you feel like what do I have to do to reach my goal. Instead of feeling down and a burden to save, you can feel uplifted and maybe find a way to speed up the process.
There are two different feelings towards it. That’s why the word budget has to go away when we set our self goals to save and increase our income. So I have personally changed the word budget to my Millionaire Money Blueprint.
Below are my strategies that helped me change my mentality towards increasing my savings. So you can decide whether Budgeting Or A having Millionaire Money Blueprint is beneficial.
Review Your Numbers Monthly
Reviewing your in-going and outgoings is super important for financial growth. When I was trying to grow my savings I was wondering why it wasn’t growing very fast. I was making good money at the time. Then I looked at my outgoings and I found so much money was being spent on eating out and many impulse buys. This was a shock at the time, as I never noticed the effect of my spending habits was having on my savings. From there I created a financial plan where I can track my money each month, i saw i was spending a lot on restaurants each week. I then asked myself the question, is this helping me or stopping me from achieving my saving goals.
This helped so much and from there the savings started to rise at a faster rate. So make sure you’re reviewing your numbers each month to further develop your millionaire money blueprint.
Enjoy The Process
When it comes to talking about money. Based on their past experiences people can become very defensive of the mention of budgeting or any speak of finances. 50 per cent of UK adults believe that talking about personal money matters is taboo – higher than sex (42 per cent), religion (26 per cent) or politics (14 per cent).
What you have to realise is, that your finances are not your enemy. Your enemy is your lack of understanding or when you put off looking at your bank statement. When you make money work for you and not the other way around – that’s when you can start enjoying the process of making, saving and investing your money. For me, one of the main aspects of a Millionaire Money Blue Print is to make money my best friend and put it work in the right areas.
Have A Clear Goal
When dealing with your finances it’s important to have a clear goal of what you want to invest in or save for. Without this, your spending habits will be wild and the hard work you put in to making it will be spent. This was me during university and a year into my first job. Money never stayed with me or worked for me, it was just spent. That’s when I decided I want to be a Millionaire. When I made this decision I decided to pick away the things I didn’t need and started increasing what I did need to help me with my goal. Of course, you need to have some fun in your life. Now instead of spending wastefully, I spend it on amazing moments, that create a lasting memory, not a fleeting one.
The main goal should be to make a clear goal on how much you want to earn. An amount you can say I’m happy with that. Then set a date and go for it.
Educate And Develop
For you to make sure you’re increasing your wealth you have to educate and develop yourself on everything to do with finances. I knew nothing about investing. So I read The Intelligent Investor, I read blogs about it and listened to Warren Buffet. Since then I now have an index fund with Vanguard. Now it’s making my money work for me. I didn’t know how to do a finance reports, so I researched it and found out how to do it myself.
My finances wouldn’t be what they are today if I didn’t educate myself. This is the same for anything you want to get better at in life. Finances are no exception. It’s not scary or something only smart people know. It’s very simple, you just have to find the right people who explain it the right way and you will be flying in developing your Millionaire Money Blueprint.
Well, I hope this helps you to understand that dealing with your finances shouldn’t have to be an ordeal. I hope you can develop your own clear goal and understanding of how to get there. To achieve your desires. I would love to know your feedback on this and what your money blueprint is.
So, are you budgeting or creating a millionaire money blueprint?