You Need a Budget

Lesson 1. Why Do You Need a Budget?

The very thought of a budget arising is a clear indication that money is a stressful concept for you, and it is a valid stress. This stress can be caused by various factors such as how to earn more money, how to manage it, how to save, where to employ your savings, and so on. All our monetary stress could be narrowed down to one question- Can I afford this? Or rather should I? 

Your financial stress is further escalated by firstly, a lack of confidence in yourself. There are too many options out there regarding saving schemes, and financial advice. You just cannot settle on one. Secondly, you do not have a proper system for making decisions for savings and spending. Lastly, it is comfortable to hide behind the lack of financial knowledge. 

Jesse Mecham proposes a change in mindset to deal with the stress. He suggests shifting the focus on what I want my money to for me. Take charge of your money and make it do things that you care about. Your money should help you achieve the plans that matter to you. Once you have decided your priorities, the journey to budgeting can begin. 

For most people, budgeting is synonymous with restrictions and unhappiness. Jesse encourages you to see your budget differently. A budget is a system for making decisions. Decisions that help prioritize your dreams and create the life that you want. It gives the freedom to step away from guilt and spend or save money to fund plans that you want to come true. These plans can be as big as buying a house or as small as affording takeout two times a month. As long as your plans hold value for you, you can create a budget that allows you to reach there. 

Jesse advocated four rules of budgeting that are spread throughout the book. These four rules are going to be both a guiding light and a check post along the way. 

Lesson 2. What to Know Before You Budget

Before starting a budget, it is essential to highlight the priorities. Once the priorities are clearly marked, only then can plans be formulated to achieve them. It should be kept in mind that these priorities are not set in stone. They can and will change over time, much like life continues to change. Accordingly, the budget should modify itself to accommodate the changes. Changing the budget is not a sign of weakness but adaptability which