Getting Your Head on Straight is the Mandatory First Step!

This post may contain affiliate links. Please read my full disclosure for more info

This is part #1 in a 5-part series. Your Ultimate Guide on How to Budget. Each week I will release a new chapter in this series, and by the end, you will know how you can finally have a budget that works for your family!

Part One: What You Have to do When You are Planing on Starting a Budget
Part Two: The Budgeting Tips You HAVE to Know!
– Part Three: The Top 7 Proven Budgeting Methods
– Part Four: Coming soon!
– Part Five: Coming soon!

Let’s start by saying that the word “Budget” should NOT drive fear or anger into your heart! I know that some of you are cringing, some of you may have let a bad word slip past your lips, yet some of you may have said: “Bring it on! I am totally ready for a fresh start!” Well, good news! Over the next four weeks, I am going to lay it all out on the line on how to finally make a budget that works for you and your family! Budget planning, when done correctly, can make you excited about handling your money! Yes, that sounds crazy dorky, but it’s the truth!

In this first post, we’re going to talk about how to get everything set up (in your mind and in the physical world) to get ready to budget. Because you just can’t jump in and expect instant success. Like an Olympic athlete, you need to get the right tools, a kick-ass coach, and the proper training! But don’t worry, this won’t take four years, like the real Olympics. 🙂 Budget planning, here we come!

Ultimate Guide on How to Budget Part One - budget planning

What is a Budget?

A budget is nothing more than a spending plan. That’s it. It’s not a bad word (although it “may” feel like it at certain times), it’s not a jail sentence, and it’s not an instant path to success with money. What it actually is, is a tool to achieve the desired result, aka more money to use as you want (most likely).

It’s just a spending plan. Because you are telling your money where you want it to go (thank Dave Ramsey for this nugget). You are simply saying that,

“I want $___ to go to this, and I want $___ to go to that.”

You need to flip the script on the word “budget” and all the negative connotations that go with it.

You are in charge, and don’t ever forget it! Yes, in the beginning, you may feel like a slave to certain restrictions or expenses. Yet that’s only because you haven’t adjusted your mindset or your spending patterns yet. As online Mogul & guru says

Everything is figureoutable!

Marie Forleo


We just need time, flexibility, and some snacks to get us there.

I also find that thinking of a spending plan as a pathway to my goals, which significantly helps me be more accepting and more positive. I know that this spending plan that I’ve laid out will help me reach the goals that I have laid out for myself. The spending plan gives me permission to spend money on things that are important to myself, and it eliminates the guilt and fear that come from spending.

People typically feel…

guilt– spending money on things that you know you shouldn’t

fear- wondering if you have enough money to cover the utilities or car payment.

Wouldn’t it be nice to get rid of these depressing and draining feelings & worries?

You can! By planning a budget that actually works for you. Remember, you control your budget, not the other way around!

Who are budgets for?

Short answer: everyone

Long answer: Everyone that has goals can be helped by having a solid financial framework in place.

Budgets are for people who have goals and dreams for themselves, and for their family!

For example; many goals that don’t explicitly revolve around money are indeed backed by money-based decisions, such as

  • owning your own home
  • take yearly family vacations
  • have a She Shed in the back yard (*sigh*)
  • send kiddos to sport or music camps every summer
  • help care for our aging parents
  • help put our kids through college

Firstly, all of these goals are great goals! Maybe you have similar ones? Notice that these goals aren’t to “have a gazillion dollars.” Yet you can see how budget planning can help all of these goals happen.

Scrooge McDuck jumping in money

These goals may not be based on having a tangible “thing,” yet they can only be met by being financially in the positive. This is different than being “rich.” You don’t need to be rich to achieve your goals!  

Think about your goals. List them out. Think of…

  • 6 month goals
  • One year goals
  • Five year goals
  • Ten year goals

Can you visualize them? Can you tie them back to being financially stable? If the answer is yes, then you need a budget!

If the answer is no, then let’s did deeper. Let’s say your goal is “to live in a tiny home out in the country where you can rest & relax, away from all the money-hungry corporate America BS!” I hate to say it, but your goal is money related too.

You need the funds to buy your tiny home, pay for utilities, moving it every few years, etc.

You see, even if you are anti-money, you still need it. This is precisely why you need to get a handle on your money now! Because using it will be with you every single day of your life. That’s why learning how to make a budget, one that really works is your best step to achieving your tiny home goals. Unless you’re a homesteader and barter for everything with chicken eggs and apples, you need a budget!

Who are budgets not for?

We covered this; they are for everyone.

Are you ready to learn how to budget?

This may seem like a silly question, but it’s probably the most critical question to ask yourself. There’s no reason to start this process if you aren’t going to take it seriously, or you’re not super committed to your goals. Why waste your time? The budget planning process needs you to be on your “A-game” if you want this to work.

Some of you may feel that you don’t need to budget because no matter what you do, there will never ever be enough money. It’s all gone the moment you get it anyway because the bills are so high. You feel that budgeting isn’t going to change a thing. First of all, I’m so sorry that you have found yourself in a situation where you think there is no hope. I know it seems bleak, a neverending cycle, so to say. There is hope; I promise you there is a way out of it. Learning how to budget can be the first step to feeling free of your money problems.

There are many resources around this exact thing, but you need to start somewhere, and sometimes you start at the bottom of a hole. The main thing is to stop digging yourself deeper! Start learning! Even if it’s just one hour a day! That’s how I got started!

RELATED: In Just One Hour a Day You Can Completely Change Your Life!

Once you start learning (from reputable sources), you will find out small ways that add up and can make a big impact on your finances!


budget template CTA box

How to Budget: Budget Planning step one – nail your mental game

Yup, we’re starting here, because the mental game of money is honestly the most important part! You NEED to believe that you can succeed, or else you’re just going through the motions, doomed from day one.

There are two pieces to this puzzle.

Your Money Mindset

Ask any athlete, and they will tell you that the essential part of winning the game is to get your head on straight! With managing your money, it’s no different! Depending on your outlook, you may need to adjust your thought process, because if you are psyching yourself out at step one, you will have a tough time making it to step two!

There are two main mindsets:

  • Fixed: basically, you think that you are all that you will ever be. You cannot grow; your traits are a “given” and unchangeable.
  • Growth: people with this mindset believe their qualities and traits can develop through work and effort. (hint: this is your goal!)

“If you have a growth mindset, you’re much more likely to be successful. Why? Because you have the drive, willingness, and overall foundation of belief to aim for bigger, better things. If you have a fixed mindset, you’ll find yourself becoming stagnant, without the motivation to achieve anything greater than what you already have. (source)

Positive Affirmations on Money Mindset

If you learned one skill, you can learn another! If you learned that one, then that means you can do another, and on and on. People’s capacity to grow and change is infinite, so please don’t limit yourself to being only as “good” as you are right now.

If you believe that you can learn and grow, but your hold up is with your money mindset, you can read more about the two main types of money mindsets by clicking the link below.

RELATED: A Positive Money Mindset is a Guaranteed Path to Success!

Your Goals 

Have you ever stopped to wonder about what you really want in life? I’m talking more than just daydreaming. Sitting on a beach at a tropical island sounds nice, but is that all you want from life?

Remember up above, we talked about goals, and that in some way or shape they have their root in being financially stable? (forgot? scroll up, I will wait for you!)

If your dream is to own your own home ( many people’s goal), then great. How bad do you want it? Because let me tell you, you need to WANT it, and you’re going to have to work for it. If the thought of working hard for your own home sounds lame, then you need to identify a better goal. I bet there is something that you really want! Something that truly matters to you (not just an expensive handbag kind of want).

You’re going to need to pull on these feelings to succeed. Many people call this finding your “why.” As in why are you even doing this thing? To get your brain wrapped around this and to help you identify your own why, I wrote a very honest piece about my personal financial why in a post. It was my most nakedly honest piece ever, and I’ve reread it 1,000 times. Sometimes to get inspiration, sometimes to feel all the feels. Sometimes to kick my butt into gear! Click below to check it out and see how you can frame something in your own life to be super impactful to you, which will make you take action!

RELATED: You Need to Have “THIS” if You Want to Hold Onto Your Money

How to Budget Budget Planning: step two – find your tribe!

It’s funny how we’re talking about budgets, which is mainly addition & subtraction, and we haven’t talked about actual dollars at all. And we’re still not. Why? Because you NEED a framework for success! You need a tribe of people and resources that you can count on to help you!

No one got to where they are all on their own! They had people! Steve Jobs had people, and Bill Gates had people, Genghis Khan had people. Yes, military warfare may be a part of your success! You may need to slash some expenses or kill some bills to reach your goal. So an ancient Mongolian warrior & ruler reference is totally applicable.

Things to bring into your life

People to Learn From:

You need people that aren’t only well versed in how to earn & save money successfully, you need people with the heart of a teacher (DRamsey truth in da house again!) We don’t want to people who claim to be helping you but really have self-serving interests at heart (say no to debt consolidation and payday loan companies!). You want people who take the budget planning part seriously, not just quick fixes by putting a band-aid on it!

You want teachers, helpers, and true leaders, and you want experts in what they are teaching! The easiest way to get started on this is to download podcasts from reputable sources. I never intended to be a Dave Ramsey fan club promoter, but it’s hard to argue with his success in helping people that are brand new to learning about money. He gives very straightforward and honest answers (albeit sometimes he might be too direct for your tastes), but hey, no one ever achieved greatness from being coddled, that includes you!

Podcasts are great with helping you learn how to budget because they are free, easily accessible, and can go anywhere with you. You can listen for 10 minutes at a time or binge seasons of content. Other good ones are MoneyGirl, HerMoney with Jean Chatzky, Afford Anything, So Money with Farnoosh Torabi, and so many more. Download a few different people, and see who connects with you and your situation. Remember, you want someone who challenges you to learn and grow!

People on the Journey With You:

Along the same lines of a teacher are people who you can lean on, people who are going through exactly the same thing as you! Trust me; you are not alone; there are thousands of others, right beside you who are struggling with managing their money.

SOAPBOX ALERT: Our Education


Why is everyone having such a hard time with money? In 2018, the average American’s personal debt (not including their house) was $38,000. (source)  Which hit a record-breaking $13.21 trillion! yes that’s $13,210,000,000.00 

Whoa Mama!

And why? Simply that we as consumers were never taught how to manage our money. You took economics in high school when they should have been teaching us about credit card interest rates and home loans! I absolutely 100% agree that the American system failed us, and it continues to fail us. Sad. So we are left finding out “the hard way” with overdue bills, collections notices, and bankruptcy, not to mention the stress that comes along with it!

It’s stupid. The collective “we” should be doing better for ourselves and our children. Let’s stop the cycle of ignorance and commit to bettering our future! (end soapbox).

This also includes hanging out more with positive people, they may not be learning about money, but they have goals, ambition, and drive, just like you! Their goal-digging ways are infectious, and you definitely want some of it!

At the opposite end of the spectrum, there are some things and people we may need to say goodbye to, in order to keep ourselves afloat.

Things to cut from your life

Temptation – 

You need to be fierce! Remember Genghis Khan? Yup, you need to cut out what is taking you away from achieving your goals!

  • unsubscribe from emails from retailers
  • unfollow retailers and certain social media influencers that are focused on selling you something (trust me, you don’t need it, whatever it is!)
  • delete your credit card info on your devices (make it cumbersome for you to purchase). In fact, delete these accounts!

Negative People – 

This one may be tough, because some of these people may be family or others that you feel are even closer. Now they needn’t necessarily be “bad,” but their influence is. You know, the friend that always wants to go out to lunch and shop the afternoon away. Or maybe even your sister, who gives you the backhanded compliment to you for being happy “in your situation.”  

You need cheerleaders!
Not saboteurs or doom & gloom preachers.  

I cut someone out, it was hard, but it was absolutely worth it. She was a self-serving friend, who only called me when she needed help, she was bossy, egocentric, a bragger, unfeeling toward others, and overall just not nice.

I cut her out. I said goodbye, and I never looked back. Harsh? Probably, but the relief I felt was palpable!

At the end of the day

Your Budget Planning session has to have your mental game upfront in the priority position! It should be the first (and most considered) step in learning how to budget and in making your own budget. If you try and skip past this step, you will find yourself slogging through the process, and one day getting frustrated and giving up.

Your goals and dreams are worth giving this process 100% of your attention. When you know your “why” and can feel it deep down in your bones, and you will fight for it.  

You will fight for it. Every. Single. Step. Of the way!  

Next week, in part two of Your Ultimate Guide on How to Budget we’ll go over some tips, strategies & hacks on how you can make doubly sure that your budget will work for you! Trust me; there are some small & simple things that you can do to dramatically increase your chances of being successful with budgeting. We’ll go over some ideas to keep your motivation strong, your savings rates up, and your happiness sky high!


budget template CTA box

Last Updated on