Overcoming Barriers to Budgeting
Updated: Sep 26
Video walkthrough of handout: forming and monitoring a budget (Mobile/Vertical format): https://www.youtube.com/watch?v=nCIX3glul5o
I bought a Habit Nest budgeting journal and it took me 2 months to actually open it. Why? As a neurodivergent person, there were many mental barriers including overwhelm, disliking mundane tasks, not wanting to come to terms with impulse purchases. I appreciate the mindset of the HabitNest creators because they tie together psychology with finance when most online seem to be addressing these in silos.
However, I know that everyone has different levels of energy to commit so I would recommend starting with the attached free worksheet first before further investing in tools. The worksheet is made by me, a person that struggles with executive function, who has trouble starting tasks and a heck of a time sticking to routines. The goal of my worksheet and recommended monitoring process is minimizing energy required. Having a "Version 1" budget now is better than waiting to make a "perfect" budget later. I recommend this approach:
1) Clarify how making a budget and successfully monitoring it would improve your life. Identify what barriers there are and how to overcome them.
2) Choose a plan for monitoring and address any barriers. Schedule a time in the calendar.
Pro Tip 1 If you need a signal for your monthly routine, you can change your credit card and bank statements from paperless to mailed and gather them in a to do basket to be addressed. (Note: check if there are fees associated for this convenience to make sure you are okay with them.) Otherwise make a calendar reminder to pull them.
Pro-tip 2: You can separate your variable spend (luxuries/nice to haves) and fixed expenses (necessities) onto 2 cards/payment methods. Then align the totals of each statement to the totals you have in each section of your budget easier monitoring. Further dive in to subcategories for misses and adjustments.
3) Gather the credit card and bank statements together for one month.
4) Quantify the current state of expenses.
Pro-tip 3: Feel free to use the worksheet attached to this post and instructional video https://www.youtube.com/watch?v=nCIX3glul5o
A) Quantify transactions into 4 sections: Income, Fixed Costs, Variable Costs, and Savings. Sum up each category.
B) Calculate Cash Savings by subtracting fixed and variable costs from gross income. Then add in any payroll deducted savings to retirement or savings accounts (add back to income as well).
C) Calculate Ratios: Fixed Costs/Income, Variable Costs/Income, Savings/Income. The general recommendation is to aim for 50% of income to Necessities, 30% Luxuries, 20% savings or debt-reduction.
5) Identify any adjustments needed to current spending habits to maintain your ratio goals in the initial and the recurring reviews.
Pro Tip 4: Remember to take the steps as slow and small as needed to keep "moving the ball down the field" each day. This will be your first draft. Make a version 1 budget and you can improve it later. The important thing is having one in place. Progress over perfection!
If you have a general question email me at susiezilligen@gmail.com. If you want personalized coaching including completing this process together and assessing adjustments needed, feel free to book a session with the times available on the website or email me to coordinate a time that works for you.
Master your Mindset, Master your Money!
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