November 2024 Pension

There is never a bad time to review your financial situation and consider a budget. But right now, as we go into the Christmas spending season and prepare for a new year might be an ideal time. 

You might be thinking, “Budgeting? Blah, blah, blah. I’ve heard this before, and I’ve never found a way to make it work for me.” Let us offer you a slight twist that might make some difference to your success.

What is Loud Budgeting?

Being loud about your budget is being vocal to those around you when you have to pass on something because it’s not in your budget. Loud budgeting empowers you to fight the urge to overspend. It promotes speaking up about saving money. It’s a way to resist impulse spending, peer pressure, or living up to an ideal that is not really you.  

The basic principle of any budget is to spend less than you earn. And so yes, you have to do a bit of work to review what you spend between each paycheque and how much of each cheque you need to set aside for the bigger once-a-year or emergency things.

After you have done this work, you can apply the ‘loud’ piece. Even if you are not up to doing this work right now, keep reading and try being ‘loud,’ and then maybe you will be inspired to circle back to create that budget. 

Why This Strategy Works

When we struggle with mental health challenges some of us may turn to spending as way to make ourselves feel better. We have all heard of “retail therapy.” But if you say out loud, “This is not in my plan” and recognize that credit card bills will only add to your anxiety, you can develop new patterns and seek to address your anxiety in more helpful ways. 

Don’t be embarrassed to let people know that you’re exercising fiscal constraint. Taking control can reduce anxiety and help you to achieve broader goals.  

Have are some responses prepared for when you in a pressure situation:

• “Maybe next time. I don’t want to spend money right now”
• “No thanks, I’m saving for xxx” (and name something more important to you)

Acknowledge to yourself, that’s it’s okay to say no and that you will be fine. You never know: you may be an inspiration to someone else who also would benefit from being more conscious about their spending.

A couple of tips to help reduce the on-line impulse shopping that can lead to overspending:

• Unsubscribe from retail emails and push notifications and unfollow brands on social media
• Delete payment details in your on-line accounts. This will force you to take a minute to think about your buying decision
• Try making rules for yourself, like waiting 48 hours to purchase something (even if it’s on sale). This will take the emotional urgency out of wanting the item.