Recognizing the Importance of Budgeting
Much of the discourse today around personal budgeting revolves around the technical aspects of how to allocate your money. However, many people don’t talk about the philosophy behind personal budgeting decisions. For me, budgeting boils down to a reflection of priorities. Similar to how we make time for the things that we want, we spend money on things we prioritize.
My Budgeting Journey
I remember having a good amount of money left over from a summer internship my senior year of college, and it being the first time in my life where I’d be able to decide how to spend it without hearing from my parents. I could either blow it on fun things, like flights and social activities, or, I could use it to invest responsibly, setting me up for years to come.
I chose to start my first investment portfolio. Some of that money would eventually go towards a deposit on a new apartment I got after graduation. My early decision to save and start investing, instead of splurging on vacations and outings proved to be a wise one. By prioritizing my future financial stability over short term happiness, I was able to avoid being in a bind later on in life.
It’s a Marathon, Not a Sprint
Recognizing what is important to me in both the short and long term informs how I budget my money. I try not to be too myopic in my decision making, and in doing so make sure to prioritize my long term comfort and success when budgeting. By making some spending sacrifices now, I can reap the benefits later on in life and be able to support myself and loved ones.
Nonetheless, budgeting doesn’t always have to be about sacrifice. There is no point in working hard if you can’t enjoy the fruits of your labor. I’m always sure to be realistic with my financial goals, and leave enough room for the things I enjoy doing. My financial goals are bold yet achievable, and I’m always sure to leave room to celebrate when I achieve a goal.
