I Hated Budgeting — Until I Learned These 4 Tricks
Written by
Cynthia Measom
Edited by
Amber Barkley
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Michael Collins, the CFO of WordFusion, said he used to absolutely despise budgeting, because it felt restrictive and tedious — and he didn’t see the point.
“But over time, I realized that avoiding budgeting wasn’t doing me any favors financially,” he said. “So, I decided to give it another shot and find a system that actually worked for me. Overall, embracing a more positive mindset towards budgeting and finding a system that aligns with my lifestyle has made all the difference. It’s transformed budgeting from something I used to dread into a valuable tool for managing my finances and working towards my financial goals.”
Here are the four tricks Collins implemented to develop a better relationship with budgeting. Plus, learn how to make budgeting work for you with valuable tips from financial experts.
He Shifted His Perspective
“What turned it around for me was shifting my perspective on budgeting,” Collins said. “Instead of seeing it as a chore, I reframed it as a tool to help me achieve my financial goals and live the life I want. I started by keeping things simple and creating a budget that was flexible enough to accommodate my lifestyle but still kept me accountable.”
How To Make It Work for You
“Budgeting is not about restriction; it’s a tool for empowerment,” said Keisha Blair, founder of the Institute on Holistic Wealth.
“Approach budgeting as a means to achieve holistic wealth — balancing financial, emotional and physical well-being. Instead of seeing it as a constraint, view it as a pathway to a more fulfilled life.”
He Made Tracking Expenses a Habit
“One of the key elements of my budgeting system is tracking my expenses diligently,” said Collins. “I use budgeting apps like Mint or YNAB to easily categorize my spending and see where my money is going each month. This awareness has been crucial in helping me identify areas where I can cut back and save more.”
How To Make It Work for You
“Consider using budgeting apps or tools that automate tracking and categorization, reducing manual effort,” suggested Mark Stewart, in-house CPA for Step By Step Business. “Set aside time each month to review and adjust the budget based on actual spending, allowing for flexibility and adaptation.”
He Set Realistic Goals and Milestones
“Another aspect of my system is setting realistic goals and milestones,” Collins said. “Whether it’s saving for a vacation, paying off debt or building an emergency fund, having clear objectives keeps me motivated to stick to my budget. I break down these goals into smaller, manageable steps, which makes them feel more achievable.”
How To Make It Work for You
Julie Ramhold, consumer analyst for DealNews, said that developing a goal to save a certain amount by a certain date can keep you motivated and benefit your budget.
“Check on your earnings every week to see how much you’ve accomplished,” she said. “When you see how much you’ve been able to save towards your goal, it can make cutting back on extraneous expenses easier. It can also make it easier to stick to a budget and pay attention to your finances when you can see the results of your work.
“If you aren’t seeing the results of your budgeting, it becomes too easy to drop the habit. Regular check-ins make it much easier to stick with any habit — but particularly one related to finances.”
He Learned Budgeting Is About Progress — Not Perfection
“Finally, I’ve learned to be kind to myself throughout this process,” said Collins. “Budgeting isn’t about perfection; it’s about progress. If I overspend in one category or veer off track occasionally, I don’t beat myself up about it. Instead, I use it as an opportunity to reassess and adjust my budget as needed.”
How To Make It Work for You
Ramhold said that you shouldn’t immediately dive into a budget and go all-out, because it can be intimidating.
“It’s much better to start with a slower approach that you know you can handle — maybe that’s by creating a weekly budget and not going over,” Ramhold suggested. “Then, when you have that as a concrete habit, you can tweak that to doing a monthly budget and getting a bit more granular if you need to.
“In the beginning, you really just need to ensure that you’re starting small with your budget and learning about your spending. Once you start gathering more insight into your finances, you can adjust your budget and tweak different categories to find that sweet spot for your personal situation.”
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