It is a challenge to force yourself to overcome the feeling of disgust and anxiety to knuckle down and get on with some tasks. Anything that feels like a chore can be easily ignored.
Author: Jonathan Llewellyn – Financial Adviser - HFB Private Wealth
Not cleaning the toilet regularly can leave a bad smell and if left too long a serious health risk. Metaphorically, failing to properly clean your personal budget can be just as damaging. This is especially important for those that have others financially dependent on how you manage your cashflows.
Now, it is hard to reframe the task at hand when staring down at the not so white porcelain bowl. There really is no choice in the matter, so knuckle down and get it done. Attacking your financial budget can be framed to lower the hurdle and make those fingers fly across the keyboard slotting in numbers and reconciling entries.
Much like 'study' or 'exam', the mere thought of saying the words can be anxiety-inducing. According to Amanda Thompson (Director at Endurance Finance), the first step to removing some anxiety and stress around budgeting is to stop calling it a 'budget'.
"Just like the word 'diet', 'budget' has such negative connotations. It feels so restrictive, prescriptive and static. When we think of the word budget we think about penny-pinching, sacrificing enjoyment for financial stability and living within limited means and depending on our own money story this may be very triggering," she states.
Instead, Thompson suggests calling your budget a 'spending plan' (or something else cute and fun), to frame your money management as more goal-oriented, rather than restrictive.
"Money and feelings are inseparable. If we instead tell ourselves that we have a spending plan, we no longer feel restricted or inhibited in our ability to make our money work for us. We will feel confident and empowered to take positive action to improve our financial position," says Thompson.
If you can make it a game, something you can make a little competitive, you are more likely to find yourself willing to dwell on your cashflows and work on improving your position.
Most major banking institutions have invested in budget planning tools within their client portals. Check out what your bank has set-up or get in contact with them to see how they can assist you use their systems to track your spending.
If you would like help to assist with the setting and tracking of cashflow goals, please contact HFB and we can organize a time to chat to put some quality strategies in place to get money flowing in the right direction.