Creating a budget gives you order and control. It can help you overcome negative mindsets, like thoughts of not being able to afford investments.
Do you have negative thoughts related to money? Most people do.
One of the most common hangups people have with money is a fear that they can’t afford to invest in their own business or in themselves as entrepreneurs. I’m here to tell you that, with a proper budget, you can find more available money to use for future projects or business investments.
Overcoming Negative Mindsets About Money
When you think about saving more money or putting more into investments, what are the first thoughts that come to mind? Lots of people have unhealthy thought patterns that hold them back from true financial freedom and success.
Let’s look at the two most common negative mindsets people have. Then, I’ll show you how to turn those around and finally break free!
Negative Mindset: I Can’t Afford It
The first one is the little voice that tells you, “I shouldn’t do this. I can’t afford it.”
Have you ever wanted to put more money into savings but stopped, afraid that you might need that money later? Or, maybe you heard about a new tool or class that could help your business in a big way but you didn’t do it, afraid of the financial consequences?
All of these reactions come from the same negative self-talk. The “I can’t afford it” voice is lying.
You just can’t afford it yet.
All you need to do is take control of your money, see where it is going, and find places where you can cut back.
Another way to rephrase this is to ask, “How can I afford it?”
Ask yourself what you need to do in order to afford it. Do you need to minimize expenses? How much income do you need and how will you make that income happen?
Negative Mindset: A Bill Might Come Due
Another negative thought pattern with money that holds you back goes like this: “I don’t feel confident that I can pay for something or invest in something because I don’t know if a bill is going to come due”.
So many people have this same fear. Maybe they have so much going on in their business that they can’t keep track of it all in their heads, so they try to spend as little as possible.
There are others that are so scared of money and financial business that they are completely unaware of the income and expenses. This ignorance leaves them feeling powerless and worrying about spending more money.
Turn this around by digging deep into your finances, setting up a budget, and finally understand which and when bills are coming due. Then, you can say, “I can afford this because my other bill isn’t due yet.”
Negative mindsets have the ability to derail us and discourage us from investing in our businesses. Thankfully, there are ways we can overcome both of these negative mindsets!
Creating A Budget: The Breakthrough
The best way to break through the negative thoughts about money is by regaining control of your money.
Creating a budget puts you in the driver’s seat. You’ll know exactly how much money you have, where to find extra money, and how long it will take you to save up for future investments.
Knowing everything you can about your own finances is and can be very liberating and powerful.
Is this your first time creating a budget? If so, don’t be overwhelmed. Start out taking small steps and do it a little bit at a time.
I created a post – How To Create a Business Budget – that you might find helpful as you go into your finances. I’ll go through the basic steps of setting up a business budget for you right now.
Let’s look at how to create a budget step-by-step!
1. Write Down Financial Obligations
First, go through your previous month’s bank statement and write down all your financial obligations. I prefer to do this in a spreadsheet because I can use the sum function to add it all up at the end.
Make a list with the name, when it’s due, and how much you pay. You’ll organize this list even further in the next few steps.
2. Put All Your Obligations On One Page
If you can, try to fit all your obligations on one page. This will make it easier for you to see exactly where your money is going.
Then, you’ll be able to prioritize your expenses from most vital to the least important. This will show you where you can cut costs to save more money.
For example, expenses like insurance or electricity are the most important ones, but having 3 different cloud storage subscriptions is the least.
3. Categorize Your Expenses
This step is optional, but it can really help you see where your money is going.
The easiest way to show categories in a spreadsheet is by color-coordinating the cells. Then, you’ll be able to see at a glance where your money is going. Where are you spending the most money? Could your meals and entertainment spending go down a bit? Are you paying for too many subscriptions?
4. Check Your Credit Card and Loan Statements
Next, look at your credit card and loan statements. Review the interest rates and charges.
If you are struggling, you may contact me if you’d like to discuss ideas for how you can lower your interest rates and pay off your loans faster.
5. Move Due Dates Around
Finally, look at all of your due dates. When do you pay all of your bills? If it makes more sense, change some due dates so you have more time between large payments.
I like to space out payments with half of them on the 1st and the other half on the 15th.
This one step could free up some money at the beginning of the month that you can use to invest in your business. It’s a little trick that is one of my favorites. Often people feel like they can’t afford things because all their money is going out at the same time. If you space it out a bit, you’ll feel like you actually have money left over.
Creating A Budget: The Best Way To Invest In Yourself
Honestly, when you stop your financial anxiety and negative mindset about money, you’ll have the emotional resources available to dive into your budget.
Creating a budget will give you more control over your circumstances. You’ll know exactly where your money is going and have the power to choose where to cut back so you can invest in yourself and your business.
The truth is that you can’t afford not to invest in yourself and your business. You need to keep putting money into your dreams to make them a reality.
Build up a budget for investing in yourself! A few ways that you can invest in yourself and where you will see results, in the end, include hiring coaches and taking training courses. When you gain valuable knowledge about your business, you can use it to earn even more than ever before.
Get a copy of budget template
You don’t have to start from scratch! Download a copy of the EXACT budget template that I use with my coaching clients that help them find exactly where their money is going each month.
Learn More About How to Break Negative Mindsets
If you’re really determined to break negative thoughts about budgeting and money, I invite you to join my Master The Money course. It’s only open a few times a year, so read more and grab a spot while the course is open!