We all know the importance of budgeting for financial health.
But did you know there are two different ways of creating a budget? One is the traditional method. The other is the way I teach my clients. It’s called visionary budgeting. Visionary budgeting is a tool to increase your income.
Traditional budgeting is a tool to spend within your means. You start with the amount of money you think you'll make - based on a monthly salary, for example. Then, you think of all the things you want or need to spend that money on. Think: rent, bills, food, dinner out, movies, gas, a new computer, retirement, savings, a fun fund. Then you work the numbers to make sure they match. And to do that, you might have to cut things out, because they are over budget.
For many people, this is the best way to handle your money, because your income stays the same every month. If you want to live within your current means, this blog isn't for you.
If you are an entrepreneur, coach, spiritual teacher, healer, read on. If your income changes based upon your sales, read on. If you want to live the lifestyle of your dreams, read on. Your work around money and budgets is to create wealth with ease. Your work is to increase how much money you bring in. A traditional budget is not going to help you. It will actually limit your capacity to dream big and reach for what you really want.
A traditional budget will help you manage the money you have. A visionary budget will help you change the amount of money you bring in.
And isn’t that f-ing exciting?
HOW TO CREATE A VISIONARY BUDGET
Step 1: Create a list of all the things you want to spend money on, without limiting it at all.
What is your true heart’s desire for where you want to live? The car you want to drive? Do you want to uplevel your closet? Where would you love to travel - for work or play - Morocco? Hawaii? Japan? All three?? What business investments would you love to create? Do you want to build your team? Hire an assistant, a social media maven, a branding expert, a brilliant attorney? How about a weekly massage, fancy linen sheets? A fantastic high-high level coach? How much do you want to save for retirement, taxes, and a fun fund? List it all.
Step 2: Determine how much each of those things cost.
This is part of what makes money so dang transformational: it’s so CONCRETE. We’re talking simple numbers here. As you fill those numbers in, you’ll know what some things cost, and other things will need a bit of research. This is part of the fun - and you’ll be surprised at how empowering it is to make the stuff you dream about concrete. Oftentimes, things cost less than we think! With your research, make an informed estimate and fill in the numbers.
Step 3: Add it all up.
Simple arithmetic, baby. Let your spreadsheet do the work for you.
Step 4: Figure out what you have to do to bring in that amount of money.
Now that you know how much you want to earn, how will you get there? Use your visionary budget to set a higher standard for yourself. Commit to it, and turn your attention to how you will bring in enough money to get all the things you visioned. If you’re reading this, you’ve already chosen to release limitations and choose to have ALL of what you want. So as you’re working the new equation of your budget, make sure you’re not self-sacrificing. If you feel the need to sacrifice your health or quality of life to bring in more money, you’ve gotten lost. Refocus on why you’re doing this in the first place. Ask yourself what you would have to do in order for the money to come in without a trade-off? How would you need to charge? How many new clients or sales would you need? How can you create the money with ease, with integrity, and in a way that aligns with your values?
Step 5: Do it.
The hard task with a traditional budget is sticking to it, and not spending money where you haven’t allocated it. The hard task with any budget is sticking to it. In this case, you must stick to the expansion you're choosing. What do you need to shift - on the inside AND the outside - to commit to your vision and make it real? Need some help with this? That’s what a great mindset and success coach is for - email us today.