As you know I’m always talking about the importance and power of having a spending plan or budget. Yup the B word.
Most people tighten up when they think of making a plan with their money because they perceive it as something that will be overly restrictive like a 500 calorie diet.
That’s actually not the case though. After working with hundreds of people on creating spending plans, they tell me that it’s one of the most freeing things they’ve done. In fact, they feel like they got a raise.
When you start to live on a plan, oftentimes you start to realize the areas that are “busting your budget.”
Here are some examples on the personal side:
- Eating out – I’ve seen many people spend hundreds and hundreds of dollars eating out each month when they really couldn’t afford it.
- Clothing – There’s nothing wrong with nice clothes but I’ve seen a lot of people shopping at Nordstrom when they should be shopping at Marshalls.
- Car – Most of us like to be perceived a certain way and so we drive cars we really can’t afford to impress people. Few people are willing to admit it.
Here are some examples on the business side:
- Equipment – I love some nice shiny equipment but too many fit pros are spending money they don’t have on equipment when they should be building more slowly.
- Certifications – I’m a huge believer in growth and learning but there are other ways to learn than paying hundreds/thousands of dollars for kettlebell workshops, especially if you’re just starting out.
- Personal stuff – It’s important to keep your business and personal finances separate. While it might be fun to use the business card on non-business fancy steak dinner, you’ll be hurting yourself in the long run.
- Software that you don’t use.
Don’t get me wrong. I in no way want you to live like a pauper. I just want you to have a plan.
So now my question for you. What are the areas that are busting your budget?