Ever been in a situation where you went over budget?
Most likely you were rebuked and told not to do it again. But you didn’t have to make up the difference out of your own pocket.
Have you ever been in a situation where the year was ending and there was money left over in the budget? When that happens, people tend to find things to spend money on, just to protect their budget for next year.
Both of these situations happen because we tend not to think of budgets as real money… as if it doesn’t really exist or belong to anyone.
How would you feel if you had budgeted $1,000 to pay your monthly mortgage and someone asked you to pay $1,200 because there was a budgeting mistake? No way! This is your real money they’re playing with.
What if interest rates fell and your mortgage went down from $1,000 to $800 per month. Would you pay the $200 difference just so that the bank could continue to receive the $1,000 payment they’d budgeted for? No, you’d pocket the difference in a flash. Because it’s real money.
Always treat budgets like you would real money. Your money.