Alright, DIY Money gang, put on those seatbelts and get ready to go “Back to the Basics”. Whether you are a seasoned “Budgeteer” or are listening to the “Basics” for the first time, we are so glad you are here. In today’s episode, we covered a lot of ground so I am hoping to break down some of this year in the blog to follow.
Before we put the pedal to the metal on all things budgeting I want to take a step back and address our “why”. Because if we have learned anything from the psychology of getting your finances in order, it is imperative to understand WHY you are willing to be different. Without your “why”, let’s face it, it’s easy to lose motivation.
For me, the “why” is simple: Freedom. I get to tell my dollars what to do, rather than allow debt to dictate my every move as many Americans do. In a 2025 study, Bankrate found that 46% of Americans have credit card debt. A staggering 23% of credit card users do not think they will ever pay it off. Rather than buying what I want and then spending the rest of my life paying back what I already bought (with a nice 25% interest rate, of course), I choose instead to be disciplined. When my friends look at me like I have three heads when I tell them that my car is paid off, I like to tell them they can live in the same freedom.
Maybe your “why” is different- to set your kids up for financial freedom, to be able to have future flexibility for the bucket list trips, or to finally quit that job that you hate. But without your “why”, you might as well quit now.
So NOW we start! And here is the plan:
- Be painfully BORING. That’s right. No fancy apps or shortcuts. Pen and paper (or maybe a spreadsheet if you want to save a tree). Write down EVERY SINGLE time you spend money for the first month. The fancypants spreadsheets will come later.
- Don’t change a thing. I bet you didn’t expect me to say that. But the change will come in the future steps. For just this month, live as you have been. So that you can start to figure out what is important to you. THAT is budgeting. But budgeting is step 2.
The best time to plant a tree? Twenty years ago. The second best time? TODAY!!
Live on Less than you make. Invest the Rest. And do so for a very long time.
Make it a great one.
-A Howard
