Ditch the Budget: A Fresh Approach to Financial Wellness

Discover a Big-Picture Approach to Managing Your Money Without the Stress of Traditional Budgeting

When seeking financial advice, the first thing we often hear is, “You need to make a budget.” Then there is talk of spending categories or envelopes or giving every dollar a purpose and which app is the best to use … then there is the expectation with a budget that you check in daily to reach your goals. It is a lot to think about and can get overwhelming pretty quickly. It becomes a chore. You spend so much time focusing on the minutiae that sometimes you lose track of the big picture, making it harder to stick to your plan.

That doesn’t mean you should stick your head in the sand and ignore your finances altogether. It may mean that we need to rethink the way we approach money. If you find that traditional budgeting is a burden, there's good news — you can still achieve your financial goals without it. It will still take work, but a shift in perspective may be what you need to reach your financial goals. How can we ensure our financial wellness without sticking to a strict budget?

Taking a Global View of Your Money and Finding Your Financial Why

Taking a global perspective of money starts with thinking about your intentions for money. What do you want for yourself financially? What do you want your money to do for you? The answers to these questions can be deeply personal and will vary from individual to individual. For some, it will be retiring early. For others, it may be to have the freedom to travel … or to own a home … or to live debt-free. Or, it could be that you want to ensure that you have enough to leave to your kids so that they have a secure financial future. Or, it could be something else altogether.

Find Your “Financial Why”

Whatever it is, understanding why you are monitoring your finances beyond the short-term answer of “I want to get out of credit card debt” can help keep you motivated. We will call this your “Financial Why.” You might even want to write down your “Financial Why” and put it somewhere visible so that you have a constant reminder of why you are seeking the path to financial wellness.

Now, let’s check out the big picture. How much money do you have coming in each month, and how much do you have going out? From a bird’s eye view, we want more money coming in each month than we have going out. Understand where your money is going and assess if — outside of necessities like food, housing, and utilities — your spending aligns with your “Financial Why”. 

For Example:

If your “Financial Why” is that you want to own a home and you find that you regularly spend $300 per month on clothing, you may want to figure out your reasoning for regularly spending that money on clothing and ask yourself if it will help you get your why. If your reasoning is that you just started a new career and are building a work-appropriate wardrobe, then this may get you to your why, provided that you curtail that spending once you have procured that appropriate wardrobe.

However, if you find that you are spending that money because you tend to shop online when you’re bored, this spending might not get you to your “Financial Why”. In this case, you may want to curtail that spending and perhaps put up some safeguards to keep yourself from spending that money monthly. 

Example: A few years ago, I looked at my spending and saw I was spending more on clothing than necessary. When I stepped back to try to find out why I was spending, it wasn’t because I needed the clothes but because I was feeling anxious about other things that were going on, and shopping was a fun escape. Once I realized that, I set up some barriers: I unsubscribed from emails from all of the places I liked to shop, and I removed my credit card information that was stored on retailers’ sites, meaning that if I wanted to make a purchase, I had to get up off the couch, dig through my purse, and pull out my credit card. Building that barrier meant I couldn’t get the instant gratification of the purchase and that I had built in time to talk myself out of buying while digging around for my card. Now, when I look to buy clothes, I’ve built the routine of asking myself, “Do I really need this?” and I take the time to think about whether spending the money on those clothes is worth taking that money away from the quest to achieve my “Financial Why.”

What Do I Do Next?

From there, you can set some goals for a specific period of time. (Read about setting SMART financial goals for the year here.) While we want to keep the big picture in check, setting and achieving shorter-term goals can give you the boost of confidence you need to continue on your path.

For instance, your big “Financial Why” may be having enough money in retirement to travel the world. It is a laudable long-term goal, but you will need shorter-term goals to keep you motivated. Since (in this example) you like traveling, a helpful short-term goal may be to take a trip. So the goal could be, “I will save X amount of dollars each month so that I can travel to Yellowstone National Park in 2026.” By reaching and completing that goal (provided you are still tending to your “Financial Why”), you give yourself a smaller win and keep yourself motivated to stay on track.

Spending and Saving With Intention

Keeping your “Financial Why” in mind as you save and spend helps you stay on track without constantly consulting a spreadsheet or a budgeting app. That’s not to say that spreadsheets and apps aren’t helpful — they can be — but checking in on them daily can become a chore. Instead, consulting your “Financial Why” may be helpful when making spending choices.

For Example:

Here is a potential thought process for making a purchase in relation to your “Financial Why.”

When thinking about the larger goal, it can be easier to decide whether or not the shoes are worth it because you don’t feel like you are beholden to numbers. Instead, you are trying to serve a greater purpose that you have defined for yourself.

Check Your Numbers Regularly

Even without a formal budget, you will need to check your numbers regularly, and you will need to find the way that works best for you. Some banks provide breakdowns of spending and saving through their apps. Or, you could find a budgeting app that acts more like a spending tracker (so no notifications when you don’t want them, etc.) I’ve used them in the past, but I don’t have any I specifically recommend. Lately, I have been keeping my own spreadsheet because I feel less and less comfortable allowing various apps to access my financial information. Do your research and proceed with caution.

Whichever way you choose, make an appointment with yourself to look at your finances once a month to ensure that your spending and saving align with your “Financial Why.” It may take some time initially, but once you get in the swing of it, you can probably spend 30 minutes per month looking at this information to ensure you are on track. If your finances are complex, or you need a little help getting started, you may want to hire a financial advisor or a financial coach to get you on your way.

What is your “Financial Why”? How can you structure your saving and spending to best serve it?

Need some help staying motivated? Schedule a free consultation with Gentle Fearless Coaching and Consulting to see if a Confidence Coaching Package focusing on Financial Literacy is right for you!

*This article is for informational purposes only and should not be construed as specific advice or a substitute for professional advice from a qualified financial professional. I am not an accountant or financial advisor, and information on this site is not a substitute for information provided by a professional familiar with your situation or unique needs.