It's Not In My Budget!

It's Not In My Budget!

October 07, 2019

The word budget has become a dirty little word. Some personal finance experts call it a spending plan just because people hate the word budget. I suppose the word budget puts limits on your spending. Regardless of what we call it, "a spending plan" or "a budget," it's essential that we follow one.

No matter how much money you make, some people can find a way to mess over it and run out! We've heard countless times of athletes, entertainers, and lottery winners who have managed to lose millions of dollars by not being fiscally responsible. They didn't keep a budget, and the money disappeared. I was scrolling through Youtube recently, and I ran across an interview with a music producer who shared his testimony about money. The producer said he saw his bank account go from $40 million to almost zero. He could barely pay his mortgage because of frivolous spending. He said that he spent a couple of million on a Bugatti only to keep the car for a few months because he could not afford the upkeep.

We need to stop feeling ashamed that we have to keep a budget. Having a budget means that you are steering and guiding your money. You're telling your money where to go each time you are paid. If you've created your budget and something comes up that's not in the budget or in the plan; it's okay to say, "It's not in my budget." Those words alone can be empowering if you are an enabler to friends and family who are continually hitting you up for money. I've met plenty of people who feel guilty saying no to family members who regularly ask them for money because they are the successful ones in the family. One woman shared with me recently that her mother expected to be taken care of by her children because she raised them.  Since the women was the successful lawyer in the family, the burden of her mother's lifestyle fell on her. Personally speaking, if an adult chooses to have a child, it is their responsibility to raise the child. The child doesn't owe the parent. That's what my mother told me, and I'm taking the same approach with my children. Part of my budget each month is a contribution to my retirement so that I am not a burden to my children when I'm older.

Start practicing in the mirror, saying, "It's not in my budget." The next time a friend asks you to hang out for the weekend, and you didn't plan for the splurge, just say, "It's not in my budget, but I can plan for the outing next month when I complete my new budget!"

About Terrell Dinkins, MBA, ChFC®, CDFA®


Terrell Dinkins, MBA, ChFC®, CDFA® is an investment adviser representative of and offers investment advisory services through OBN Wealth Advisors, LLC, a registered investment adviser offering advisory services in the State of Georgia and other jurisdictions where registered or exempted. Main Office: 950 Eagles Landing Pkwy, Suite 216, Stockbridge, GA 30281. Tel: 404-723-9780. Website: OBN Wealth Advisors. Image by Picdream from Pixabay.