Why Budgeting is a Dirty Word
It's April, which means I have seven months left of new episodes for Martinis and Your Money. As sad as I am to say goodbye to this podcast, I'm equally excited about the final season of episodes I'm delivering to you every Friday. Each month of this year is broken down by subjects that are important for anyone's financial health journey. I'm bringing to you the best guests around these topics but also sharing with you the best tips and practices I've learned in the last 15+ years.
April is a short month as far as Fridays are concerned, and it's my birthday month, so I decided to talk about a subject that I personally used to hate but now love, and that's budgeting. Joining me today is Kim Bigby, a Financial Trainer at Financial Gym and a longtime budget lover. Kim joins me today to share her thoughts on budgeting, and we both share best practices on finding budgets for clients and our secret to success here at Financial Gym.
What are we drinking?
Kim – Devil's Reef Cinnamon Spice Rum
Shannon - Gin and Tonic
Podcast Notes
Why Budgeting is Important
The word budget can have a negative connotation, but they're an important part of becoming financially healthy. Kim joined The Financial Gym as a client seven years ago because, as an accountant, she knew how to budget but was seeking accountability.
Everyone needs a plan for their life. A budget is just a plan for your money. It is a roadmap to help you reach all the destinations you want in life. If you don't like the word budget, replace it with something else that resonates and excites you.
If you use credit cards to pay for necessities or are carrying debt, you need a budget. Consumer debt is a clue that you are spending more than you are earning. With 70% of Americans living paycheck to paycheck, this is common.
Budgeting can seem scary, but it's all just math. Once you understand your numbers, you can make a plan. It may mean making changes, but if something is important to you, those changes must be made.
Planning in advance is important. If you don't, things will start to add up. This happens especially with weddings. If you put expenses for special events on a credit card, you're then paying that money back, plus interest.
Setting Financial Boundaries with Yourself and Others
When you're on a financial health journey, you may have to set boundaries with friends and family. Most folks will respect your decisions, but some may not understand or give you a hard time. Be prepared to stand by your values and set boundaries.
Financial boundaries will teach you a lot about your family and friends. You will find frugal friends and people who will support and cheer you on. Sometimes, you have to be the first person in a friend or family group to suggest the more frugal option, but others will be thankful.
Setting financial boundaries and saying no are like muscles that get stronger and easier with more repetitions. Don't be afraid of judgment. Your friends and family will still love you, even if you can't afford to give gifts at every holiday or travel for certain events.
There are so many different ways to budget. If you've tried something that hasn't worked in the past, try a different method. The best plan is one that feels accomplishable and that you will stick with for the long term.
When you start looking at your numbers, do not guess. Open the statements and use the actual numbers to create your plan. People are scared to do this because they know something isn't working.
Start by reviewing at least 3-6 months of expenses. 12 months will give you a more accurate picture of your overall spending habits. If you spend more than you make, you know you have to either earn more or spend less. Remember to include saving as a line item in your new budget.
Final Thoughts
Everything you do financially is fixable. Achieving financial wellness can be liberating. Establishing a budget is the initial step toward financial stability.
You do not have to completely change your life overnight. Start with the small changes you can right now. Can you try something different? Those will add up and build momentum in other areas.
Instead of starting with what you will cut, start by thinking about what you will keep in your budget. At The Gym, we call these your non-negotiables. You can choose 1-2 things that bring you joy that you'll always make room for in the budget.
People who become comfortable with their budget and financial boundaries are more financially healthy and happy. They save, can focus on the things that bring them joy, and feel more comfortable.
There is no quick fix. Becoming financially healthy is a process that takes time. How much will depend on where you are starting. The key is to trust the process, do the work, and stick with it for the long term.
You do not have to do this work alone. If looking at your expenses or creating a budget feels intimidating, reach out to someone like a Trainer at The Financial Gym. We help clients do this work every day and see firsthand the power of a plan and accountability partners.
Takeaway: My biggest takeaway is that if you haven’t figured out your true 2024 budget yet, there’s no time better than the present and if you need a budget and accountability buddy, please look no further than Financial Gym. We’ve been getting and keeping people on budgets for over 11 years now.
Random Three Questions
If you were given $20k for travel specifically, where would you go?
What is something you do to relax?
If this was your last meal on earth, what would it be?
Connect with Kim
Kimberley Bigby
The Devil's Reef Rum
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at shannon@fingyms.com or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
As many of you know, other than running this podcast, I’m the founder and CEO of The Financial Gym, and we are celebrating 10 years of this journey. Now more than ever, I see the importance of the work we do every single day. Rising inflation, the return on student loan debt, high-interest rates on loans and mortgages, and volatile stock markets make it a time where, now more than ever, you need a best financial friend to help you make the best choices along the way.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and Retirement. As a reminder, we work with individuals, couples, or business owners.
The exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services, available for people looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company. We literally have a solution for you, no matter where you’re starting from. So what are you waiting for? Head over to or send friends to financialgym.com to get started today. Our warm-up calls are free of cost and judgment, so you have nothing to lose.