Your Budget: Creating a Lifestyle Blueprint

Budgeting is an art. No, really. It is a creative enterprise of your resource optimization. Your budget is the architectural plan of your lifestyle: the blueprint. It is so essential that I have a whole section in my book on this topic.

When budgeting is done well, it is a powerful tool for enhancing your freedom of choices, quality of life, and total wealth over time. It helps you make decisions where money is a consideration, but not a blocker. In a way, budgeting is a healthy habit like meditation: we all know it is good for us, but only a brave few sit down and practice it daily and reap the huge benefits.

Budgeting does not have to be boring. Yours can be unboring, as what is more exciting than determining what you can do with your life supported by your resources?  There is a current trend of ‘loud budgeting‘ in social media, maybe as a backlash to the cost of living increases we are experiencing. I think it is a good thing that budgeting is being discussed openly, as it really is the first step to financial empowerment.

There is no one right way to budget; it is really what works for you. I have a suggested budgeting framework you can start off with; I choose the word TALIS, as your budget can be a talisman for your life, and it is nice to have a handy acronym to remember things.

• 15% Travel
• 35% Accommodation
• 25% Lifestyle
• 15% Insurance & Debt Payment
• 10% Saving & Investment

This is a general framework, and you can adapt it to your situation. The main guideline is that you cannot go over 100% (or you are cash flow negative and will have to increase debt or dip into savings). Another guideline is you want to be saving, even if it is a small amount to start.

I recommend approaching budgeting with a mind-set of plenty. Where people can fail with budgeting is if they get a sense of scarcity and deprivation from it; or they leave themselves with zero fun permitted in their lifestyle, and they penalize themselves when they go over their percentage boundaries in any area. Budgeting has been synonymous with dull and boring, but is freeing and exciting over time. Budgeting gives you permission to spend, handle what life throws at you, and permission to focus on creating your dream life!

Do you budget?

Disclaimer: This article if for educational purposes only and is not personal financial advice.