November's Basecamp Newsletter

If you've never had a budget before, you're not alone. A 2019 survey from CFP Board showed that 2 in 5 consumers have never had a budget before.¹ A lot of people think of budgeting very negatively, Winnie Sun, co-founder of Sun Group Wealth Partners, told CNBC, "It’s sort of like telling someone they need to diet and eat healthy."²

 

In reality, budgeting is about creating a habit. When you think of budgeting as a verb, a regular activity, rather than a one time act of creating a budget, you'll set yourself on a track toward creating a healthy relationship with your finances.

 

Jokes and memes about not checking your bank account are commonplace now because there is a level of truth to them for many people. Most people do avoid checking their bank accounts out of fear for what they will see. That said, keeping close track of your spending and bank account balance is what helps you stay on your budget. It takes practice and discipline, but it is doable.

Finances as part of your well-being

Maintaining a healthy financial balance is an essential part of your financial well-being. In a stress survey from the American Psychological Association, 66% of adults said money was a significant cause of stress.³ Stress can stem beyond your mental well being to your physical well being, with Americans with high stress levels being more likely to experience headaches, lack of sleep, or experience depression or sadness.

A few key recommendations from the article for what you can do to negate your stress that apply specifically to budgeting and personal finance are:

Don't judge yourself against others.

• Especially when it comes to finances, a lot of us feel the need to compare ourselves to our peers. This is an extra layer of stress that you can avoid when you decide to focus on your journey alone.

Take your own advice.

• If a friend were in your situation and asked you what to do, what would you tell them to do? Odds are you already know the answer to what the best next step is, you just need to take your own advice!

Take control where you can

• Stress around your finances is frequently caused by feeling a lack of control around your spending. One way you can start to take control is by creating a budget and following it.