Read this before you create another budget.

Budget. Just the word is enough to make people shudder. I was the same way for the longest time. Then I became the type of person who was always pumped to create a budget. Keeping one, however...well, that wasn’t so easy for me.

My failure to keep my budget made me feel awful about myself and my financial life. I was living paycheck to paycheck. I began a cycle where I realized I needed to make a change. I would march to the store to buy a new notebook or go down a google search rabbit hole to search for the perfect new app to create a generic budget. Inevitably I wouldn’t keep up with the budget and then again-eventually- I realized I was living paycheck to paycheck and I needed to make a change. Around and around the cycle I went for years. Until one day, I started actually studying and reading how to budget. I also decided to meet myself where I was- no generic budget, this budget needed to fit me. Over the years, I’ve learned the following lessons that might help you as you develop your plan to become financially stable this year.

Lesson 1: Meet yourself where you are.

One day while following along a workout video, the personal trainer said “Don’t push yourself too hard. Meet your body where it’s at.” That advice resonated with me and I think it applies just as well when a person begins to think about getting their finances in order. It’s really important to give yourself grace in this process, especially if you are a newbie to all things financial. Our money is so very personal. Whether you make a little or a lot, your money and how you use it are inherently tied to your values and your priorities. It takes a lot of courage to take a step back from your normal flow of life, recognize something is wrong, and decide to change things.

Before we even begin creating a budget, it is important to take a minute to reflect on and assess your current habits around money. Some questions to think about: do you avoid looking at your bank account and swipe your bank cards with a small prayer it doesn’t get declined? (I’ve been there). Do you have a general sense of your income but don’t understand why none of it is left over at the end of the month? Do you live paycheck to paycheck? What’s your routine when your paycheck is deposited into your bank account? Do you go shopping? Are you in habit of saving?

We’ve created this guide to help you complete this quick exercise. Answer honestly and quickly. Most importantly, don’t assign value to your answers. You are not a bad person or a failure and there are no “good” or “bad” answers. This is a great first step and bit by bit things will get better. This step is simply to know where is your starting point.

Lesson 2: Get a vision.

Now that you’ve assessed where you are, it’s time to think about where you’d like to be in your finances. The next section of the worksheet provides space for you to jot down your vision. Dream big. Want to be a millionaire? Want to have a big savings account? Want to be debt free? Brain dump all the things you want to accomplish with your money. When we have a vision for where we’d like to be in our financial life, it helps us plan the journey. We recognize that while becoming better with our money is a process, there’s a bigger picture and something we are striving to accomplish.

Lesson 3: Focus on systems, not goals.

“You don’t rise to the level of your goals. You fall to the level of your systems.” - James Clear

Any change in your finances will require behavior change. If you make changes are that simple and easy to implement, those changes are more likely to become routines and habits. Pretty soon, your finances will operate on autopilot- getting you closer and closer your vision. Begin to think about what steps you will take as soon as your paycheck gets deposited into your account. Together these steps make up a system or process you follow to get you closer to your financial goals, like steps in a cooking recipe help you prepare a tasty dish. The next section of the worksheet includes a checklist for you to fill in each action step. It is important to be very specific. For example, “I will save more money” isn’t as helpful an action step as “When my paycheck gets deposited into my bank account, I will transfer $100 to my savings account.”

So it begins.

That’s it! I hope you found the guide a useful exercise as you create your budget. Consider printing it out and hanging it up somewhere you can visit it regularly to keep you inspired and focused. Happy budgeting!