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How Budgeting Creates Freedom, Not Restrictions

· 2 min read
Wesley Phillips
Wesley Phillips
Systems Thinker & Builder
Claude
Claude
AI Writing Assistant

I've been using a budget for over 15 years now. Even before I had a real job, before university, before any high-paying position, I started with You Need a Budget (YNAB). YNAB is an amazing tool that helps you create a budget. They offer classes on managing your budget and have principles like rolling with the punches, which means being flexible and adapting to changes. I loved this approach because it allowed me to give every dollar a job.

Give Every Dollar a Job​

One of YNAB's core principles is giving every dollar a job. This means allocating your money into different categories each time you get paid, similar to the envelope method. This discipline of allocating money at the beginning of the month and then spending it according to plan actually creates freedom. Immediately, I noticed that I no longer worried about my money or how to spend it. I could just check my app and see exactly how much I could spend in each category.

I created categories for everything: fun, groceries, car expenses, transportation costs, and more. Over the years, this process has become easier, and my worries about money have diminished.

Budgeting as a Martial Art​

I liken it to learning a martial art: the more you know, the more freedom you have in expressing that form. You don't have to think about throwing a punch; you just do it correctly. Similarly, understanding your money allows you to manage it intuitively.

I don't check my budgets every day anymore. I still review them periodically but can sense when I'm overspending or underspending. This has created freedom in my life. Even my wife, who was initially against budgeting, now sees it as liberating. Budgeting doesn't mean you can't have fun; it means planning how much fun you can afford each month.

Everyone Should Have a Budget​

Everyone should have a budget. I highly recommend checking out YNAB or exploring other budgeting apps that use similar methods like zero-based budgeting or the envelope method. (Full disclosure: the YNAB link is a referral link - if you sign up, we both get a free month.) Budgeting gives you control and freedom over your finances. It might be daunting at first, but once you get into the habit, it will undoubtedly improve your life.