Make a Budget That Brings You Joy
As part of our Women’s History Month series, we held a series of incredible roundtable discussions with some of our favorite women in the personal finance space.
Jazzy, Founder of First Hustle Then Brunch, was one of the speakers on our “Building a Budget that Loves You Back” panel. Here’s what she had to share about how we can align our budgets with the things that bring us happiness and joy!
A Budget’s Purpose
Budgets are seen as this non-sexy thing. Society has conditioned us to believe that budgets are restrictive and something we'd just rather not talk about.
However, there's a quote that I love by John Maxwell. "A budget is telling your money where to go, instead of wondering where it went."
I think that's the most important thing to keep in mind. A budget is a tool that actually gives us the freedom to choose how we spend our money.
So contrary to what society may have you believe, budgeting can actually mean spending more on the things that make us happiest.
4 Steps to Building a Budget for a Better Quality of Life
How can we get clear on which expenses improve our quality of life? How can we start spending smarter and in ways that align with our values? Here are four steps to do it.
1. Make a list of your values.
Really think about what brings you joy and spend some time working on a list. Think about what's important to you and how your life would be impacted if you no longer could do the things that make you happy.
Think about your long and short-term goals. Be honest with yourself and write down everything that comes to mind. It could be traveling, volunteering, running marathons, or your daily spin class. I know a lot of people say, “Oh, cut out the boutique fitness classes,” but maybe that is something that actually brings you joy. Whatever it is, write it down!
Don't rush this process. It’s part of my Ultimate Budget Binder as well. It's a printable budget binder that has a bunch of worksheets to help you get organized with your finances and have everything in one place. And only three of those pages are dedicated to the actual budget! The vast majority of it is goal setting. So setting your short and long-term goals, mid-term goals, and just getting clear on what you value. So it's super important.
2. Review your bank statements from the past few months.
Look at what your spending is telling you about what you value. If there are causes or things you care about that you put on your list in step one but you don't see reflected in your bank statements, make note of that. This could be a good time to be more intentional about putting those items in your budget and kind of “trimming the fat,” if you will, of things that you may be overspending on that you don't actually care that much about.
3. Create the actual budget.
Focus on reducing spending in the areas that you don't really care about so that you can spend more on the things that bring you joy. For example, maybe you don't care about where you live or what the status of your home is. Get a roommate or opt for a one-bedroom apartment versus moving into a bigger house. Then, you can spend money on new experiences and travel or whatever it is that’s important to you. Or, start cooking more meals at home if you've determined that you value spending quality time with your family over eating out all the time, either alone or with friends.
4. Track your spending - at the end of the week, at the end of the month, or at the end of the year.
I definitely try to track my spending at all times every week, but do whatever works best for you. At the end of the month or at the end of the year, you'll have a concrete answer as to where all of your money has gone. You'll be able to determine if you met your goal of spending in alignment with your values or not.
Personal Finance Is Personal.
Personal finance is exactly what it sounds like - it's personal. I can't tell you how you should spend your money. You also shouldn't be made to feel guilty because your spending habits don't align with the goals of your friends or your family members or any personal finance creator that you're following.
Especially if you're a millennial, our spending habits tend to be somewhat different from those of older generations. Just keep in mind that this is your budget and when your budget is in alignment with your goals and your vision for your future, you're more likely to stick with it.
About Jazzy:
Jazzy is the founder of First Hustle Then Brunch. After graduating with a Master's Degree in Management from Wake Forest University School of Business, she began a career in digital marketing. She now uses her expertise to teach millennials how to manage their money, build profitable online businesses, and create their dream life.
Follow her on Instagram at @itsjazzyt