Do You *Really* Need a Budget? A Former Financial Advisor Weighs In

According to this study 68% of people would rather talk about their weight or sex life than money— ehhh. So let’s go there?

When it comes to money talk, budgeting has got to be the worst? Even as a former fortune 100 financial advisor, self-proclaimed numbers nerd and financial consultant for the past twelve years … “budget” is the six-letter curse word of finance.

If budgeting, money, and all things numbers makes you want to 🙉 hear no evil … stick with me because THIS post is for you!

Do You *Really* Need a Budget? A former Financial Advisor Weighs In.

Let’s just call out the elephant 🐘— budgeting is no fun.

If you google “is budgeting important” you’ll get a bunch of AI / ChatGPT sounding gibberish about how having a budget will help you control your spending, save money, prepare for emergencies and get out of debt — all the “financially responsible” things we are supposed to do with our money.

If we all know budgeting is important, then why do less than 30% of households actually have a budget? (and even less follow it!).

🔥 Shanna’s Hot Take: traditional budgeting stinks. There I said it! 🤭 It’s boring and restrictive. Like builder beige in a greige world.

Can I make a confession? It wasn’t until years after leaving my corporate finance job that I, yes I the former Fortune 100 financial advisor, had a budget. You heard me right… I went years working in finance and never had a budget myself. (You can read more about my own journey with money, here.)

Instead of spewing the same old tired reasons why budgeting is important for not only your home but your business as well — I’d love to share why I personally love budgeting and 10 compelling reasons that may just convince you it’s time to cozy up with your numbers as well.

Pencils sharpened and calculator ready. Let’s dive in.

10 Reasons to Cozy up with your Numbers + Create a “budget” for your home and business finances.

1. A budget gives you permission to spend

And all of us said, “amen”! I used to think of myself as a saver but turns out I love to shop. My love of shopping lay dormant until we bought our first home, discovered Studio McGee and Amazon prime’d too many to count interior design books. Don’t even tempt me with a seasonal decor pillow. Take my money, Target Hearth & Home section.

I love a budget because it gives me permission to spend on the things that I value and love. While my sister shops for clothes at least once a week, I prefer to buy wallpaper samples and a new rug. To each their own. 👌

Personally, we have budgets for Kyle’s hobbies, my hobbies (aka home decor), and a house cleaner. We budget for things we value… and (spoiler alert) that’s been the key to our success with “budgeting”. I am grateful that I can buy my seasonal decor pillows without guilt— permission to spend on things I love and value, yes please!

Love cheese? 🧀 Budget for it! *wink*

2. In business, a budget ensures you get paid! (and that you can pay a team!)

When money is tight in business what is the first thing to go? Your paycheck, right?! Whether it’s overspending on a job, investing in the international workshop, or buying the good creamer… without a budget it’s too easy to overspend when things are good.  We don’t save for a rainy day because we don’t know we need to!

Alternatively, with a budget in place, I start the year already ear-marking funds towards specific expenses or goals. That means, I walk into the year knowing how much we can spend on educational experiences like a workshop or course, how much we need to pay our salary and our team. As Dave Ramsey would say (paraphrased), “we’ve told our money where to go instead of wondering where it went.”

When income is good, our bank account grows. So when income is low, we have the funds we need to continue paying our bills. Spending is intentional and planned instead of reactionary. 

3. A budget puts an end to the feast or famine cycle (even with a seasonal business or fluctuating income).

The truth is, without a budget in place, money is typically spent in a very reactionary way. When the bank balance is high, more money is spent. When the bank balance is low, our ability to stretch a dollar becomes like an olympic sport.

I fully expect that business revenue will fluctuate from month to month. Some months are high and others are low months. Because I know how much we need to sell to cover all the bills, the reality of fluctuating income becomes a lot less scary. The high months create cash reserves (left-over money) that cover the low months.

Without a budget, we are likely to spend all the money as it comes in.. but a budget essentially ensures we save for the slow months and rainy days! “In the black” when it comes to business and “living below your means” on the personal side. While a budget isn’t going to solve all the problems if you aren’t selling enough… as long as you’re hitting your sales targets, a budget ensures you always have money in the bank!

4. A budget keeps you from working all the time! Aka Permission to Rest!

Do you feel like you have to say yes to every client, job, or opportunity that comes your way out of fear of not having enough? Have you ever taken on red flag clients just to pay the bills? A budget can help solve just that!

How? I see so many entrepreneurs fall into the trap of working all the time / saying yes to every job because they don’t have a clear “done point”. It’s hard to hit a target 🎯 if you don’t know where you’re aiming!  A budget tells you when enough is enough.

How many clients do you need to pay the bills? How many products sold per month? Once you know those numbers, and hit those numbers, you can rest without fear!

On the flip side, if you realize you’re not on track to reach your sales target, you can adjust course instead of being blindsided at the end of the year. Constructive Motivation to push hard when goals aren’t being met, permission to rest when financial goals are reached.

I am focused on hitting our sales targets each month and as long as I do that, we will have the money we need to pay the bills (in business and personally). This budget, what I like to call your money plan, becomes the blueprint you need to set financial goals in business. A target to aim for and sales goals to chase after! (and ps. I believe this is the most important financial document every business owner needs!— Need a money plan of your own? I’ll teach you how to create one in The Blueprint Model)

5. Say “Yes” with confidence instead of fear.

Building your wings on the way down, doesn’t feel good when it comes to your money. Hiring the team member, taking the trip, buying the boat, doing the thing… is much easier when you know HOW you’re going to pay for it!

6. A budget decreases buyers remorse and impulse purchases.

True or False? The less time you spend online, the less $$ you spend? (meh. True) Influencer culture is strong. And while I love how the internet has allowed more women, myself included, to work for ourselves —sometimes I need to give my ltk page a break and be grateful for what I have!

Not to mention, if you’re like me and scoring a deal makes your heart go pitter patter.. I shop smarter, get more creative, and put a little elbow grease into things when I don’t have unlimited funds to spend. All of which make me love that item even more in the end!

7. See your big dreams actually happen— because you stuck to a budget!

Do yall remember when the capsule wardrobe was rising to popularity back in the 2013-2014 era? I remember because I had never dropped $100 on a nice pair of jeans. At the time I could not fathom cleaning out my closet of “got a good deal on it” apparel in order to invest hundreds, if not thousands, of dollars on a new set of clothing.

Then I started to clean out my jean drawer. I found 7 pairs of $20ish dollar jeans all of which fit me so-so, not my favorite and not all very flattering. It was an aha moment for me. What if I took that same $140 and bought two pairs of $70 jeans or one really nice pair of jeans?

A budget allows you to spend on things that matter to you. It allows you to see that a quick buy today may cost you a more important long term purchase tomorrow. Don’t make the same mistake I did 🙂

The figurative 7 pairs of cheap jeans versus the 1 pair of super nice jeans that I actually want can look like…

The amazon purchases today instead of a weekend trip to Napa Valley in a year from now.

The target impulse purchases today versus the paid off car in three years from now.

… buy the house!

… pay off the student loan!

… buy the dream boat!

… buy the expensive dress (and shoes!)!

You get the picture… A budget ensures your money goes where you want it to go, towards the things that actually matter to you, instead of little purchases here and there that add up but aren’t fulfilling for long.

You may also like: Scared to spend money? 3 Tips to Overcome the Fear of Spending.

8. Be More Generous with Your Money

We hoard money out of fear of not having enough. Having a budget in place puts the math right there in black in white. When you know with confidence you’ll have enough to pay the bills, it is much easier to be generous with excess funds. Whether personally or in business, the same holds true for both!

9. Enjoy the things you have more.

I’m not sure the idea of “being on a budget” excites many people. In fact, I would bet most of us like the idea of having all the money we could ever want or need — financial abundance. But just like the tummy ache that is sure to happen if my toddler eats too much sugar or the inevitable meltdown when nap time is skipped to keep playing— too much of a good thing CAN in fact become a negative.

There’s a famous economic study in which Angus Deaton sought to find the correlation between income and happiness. The thing I find most interesting about that study is the point when more money actually decreases happiness.

All this to say, not being able to have everything we want RIGHT NOW will actually make us appreciate the thing more when we do get it! Delayed gratification is powerful. Thanks budgeting for amping the excitement when we do get what we’ve been waiting for!

10. Peace of Mind.

When I know exactly how much we need, I feel less stressed. I like knowing where our money is going and how much we need to make to cover all the bills. I like being able to take off and truly be off. Not to mention, spending our money with intention makes us value the things we have more. We cannot afford to buy everything, that makes the things we do have even more special. I am grateful to go into the year, each and every year, with a plan mapped out for our money. I know how much we need to sell in the business to pay all the bills and pay ourselves, our business budget aka “money plan”. Which also helps me know how much income we need personally to pay all the bills, give and save— our home budget.

The targets have been set. The plan has been made. Now I just have to get to work and follow the plan! Control the things I can control, and spending is one of those. = Utter freedom.

Have I convinced you why budgeting is important?

˄ ˄ ˄ That’s what I want for you as well! Peace of mind, a well mapped out plan for your money, confidence in spending, and enjoyment of the things you have. It’s for all those reasons that a dirty ol’ budget actually becomes one of the most life-giving and freeing documents you can have— both for business and at home!

Are you salivating to get started on your spending plan? I’d love to help!

⚠️ Warning: this will likely be the most FUN budgeting class you will ever attend! ⚠️

CLICK HERE TO REGISTER FOR FREE!

Keep Reading:

Scared to spend money? 3 Tips to Overcome the Fear of Spending.

Get Out of Debt – Our Journey to Financial Freedom

How to Manage Small Business Finances

Need help getting your finances in shape?

💸 The Blueprint Model : My Signature 12-week Business + Finance Program to Simplify The Math of Business

🌟 My Blueprint Year : Annual Planning Course + 350-page Planner/Business Tracker

🏠 Blueprint at Home : My Personal Budgeting Course

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