Why I Don’t Budget and the Three Things You Should Focus on Instead

Daniel Penzing
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Investing in Yourself

As with every other part of life, a budget is not the be all end all solution for finances. There is a time and a place for budgets, but a budget alone often does not solve the whole picture.

What does matter is spending money on something that is going to help you reach your goals. If you invest in something that will help you build a business, that’s more important than saving a little bit of money in the short run. If you invest in a travel experience to learn more about other cultures, that’s more important than saving a little bit of money.

In fact, its often good to spend more money to get to where you want to be. This isn’t like spending money on an expensive handbag, it’s an investment in yourself, your future and things that mean the most to you.

Hopefully these three things are an investment in you. If they are, you are investing in your future and getting the best of your life and your finances.

Investing in a Business

Individuals can have different choices when it comes to putting their money in a business.

Some look at the traditional method of creating a business from scratch. Some might look into franchises, while others may choose to invest in small businesses.

Again, everyone is going to have different opinions, but I would highly recommend investing in inventory. This is because of one very simple reason: your capital is not tied up for long periods of time when nothing is selling.

What I mean by this is that if you decide to open up a cake store or ice cream shop, you are putting your money into a business with the mindset of continuing this for a number of years. If you go this route, it’s possible that at some point you might go a few months without making your money back.

If this happens, I recommend that you stay alive as long as possible and keep extending your store hours for any extra cash flow you might get.

I cannot stress enough how important it is to have a cash reserve. You might even consider putting your money into an extended warranty for your business. This will go towards covering the cost of initial expenses that are guaranteed by the manufacturer.

This will give you and your business a little more quality time, and may be a lifesaver if something goes wrong.

Investing in Others

I’ve been there. I’ve done the short-term budgeting thing where I tracked how much I was spending on everything and tried to balance out my expenses and savings. I was decent at what I was doing, but I wasn’t great and I certainly didn’t enjoy it.

Budgeting is a lot like reading a book that you’ve decided you don’t like. You have to force yourself to take each page step by step, and when you’re done, you swear to yourself that you’ll never pick up another book by that author again.

When you’re doing it, you just have to get through it. It isn’t fun. It isn’t inspiring. It’s just a necessary part of becoming a better you.

And it’s the same for budgeting. Budgets are a necessity, but you shouldn’t like them and they should be more of a means to an end than something you enjoy.