If you have read some of my blogs for Velocity in the past three years, you may have seen an evolution from someone relatively “unempowered” in the financial world (which is really a nicer way of saying ignorant) into someone who has more nous when it comes to personal finance.

This is mostly thanks to the shared wisdom in the room here at Velocity and Caveo. I can’t help but learn things from my adviser colleagues when we are literally talking about helping people make better decisions with money every day, and I happened to be one of those people who could really use that valuable advice.

You have probably picked up by now that I have not come from a financial background, and I have no qualification in this area. I was one of those people who used to cross their fingers and squish their eyes together whenever checking the ATM balance (yes, I am that old).

I remember at some point in my flatting days using an envelope budgeting system, which worked very well, except when the food envelope was spent on beer.

Today I am, for better or worse, older and wiser and no longer married (yes, that was another thing that sped along that financial education piece).

I have done the things I have been advised (perhaps ear-dropped?) to do by my savvy colleagues. I’ve checked and tweaked the KiwiSaver settings. I’ve saved a chunk for my emergency savings. I use high-interest cash accounts. I’ve got insurance fit for purpose. I bought the investment property. I’ve jumped into a managed fund. I have investments for my kids. I’m working on a financial plan with my partner. I am so proud of how far I have come.

But then, there’s the budget. Ah, the budget.

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Avoiding the Budget

None of these things can really work well without the budget, and I know this, I really do. The problem is I am not a numbers chick. I don’t dig spreadsheets, graphs, reports. Ugh. I feel sleepy just thinking about all that.

So, I have avoided the budget like I occasionally avoid the dentist. Much like the dentist, however, I know the budget tool is actually here to help me, not to make me feel bad about my habits.

What does inspire and energize me, though, is the big picture at the end (possibly you may remember the Eat/Pray/Love travel aspirations and Dog Cottage from my previous blog).

So, once again and after much procrastination, I have put on the big girl pants and faced up to the next level of financial best practice. I jumped on the budgeting bandwagon.

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Facing the Budget

I am proud to write that I have literally joined up to the MyBudgetPal website (not app) to use their free budgeting software. MyBudgetPal connects with your bank accounts daily, automatically categorizing your transactions into expense categories. This provides you with a clear, single view of your spending habits. You can schedule upcoming bills and payment due dates with the budgeting module, and what’s more, you don't need to be a Booster customer to use it. (I should perhaps mention that Booster is one of our providers and this is the budgeting tool that we do recommend to our clients, and for good reason.)

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Taming the Budget

It was very easy to jump in, link up to my accounts, and go.

Within about 5 minutes, there were lists and graphs and one very clear picture. I have a teeny habit of overspending.

One happy thing? At least now I know for sure.

Second happy thing? A few tweaks should remedy that quite quickly.

The aforementioned “few tweaks” is where the rubber really hits the road. Assigning the categories, setting the budget, checking it frequently, and sticking to it.

I tried to assign a category for my current book-buying obsession – is this under Education? Entertainment? Personal? Gifts (to myself maybe)? Hmmm.

Clearly, there is work to be done.

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Budget Happy

I am chuffed with myself for having taken this step. I can’t wait to tell my partner and Elizabeth, my adviser at work, that I have finally done “the thing.” There is a small feeling of sadness now that my unbridled days of random spending are being tamed, but also it must be said that there is a sense of relief as well. That is one of the things I have found when changing my money habits. Fear is replaced by relief. Relief comes with hope. And that is worth overcoming the barriers for.

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Shona.

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About Shona: Hi, I’m Shona, the communications and marketing support person for Velocity Financial. Designing effective communications in a complex industry such as Finance is a worthy challenge. Finding ways to bridge gaps between complex financial information, and the everyday needs of people trying to navigate that world through informed choices, is something that I relish. I love deciphering and disseminating the expert knowledge and ideas of our clever team, into simple messages that speak directly to our clients, who are hungry for more knowledge and better understanding. In my outside life, I am a keen photographer and, like others in the team, I have a passion for the outdoors, hiking and mountain biking. I also train in martial arts and have been known to wield a sword on occasion.

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Disclaimer: I am not a financial adviser and what I have shared is general advice that has been peer-reviewed by my team. As always, make a time with our financial advisers for expert advice about your own situation.

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Always get professional advice

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures  https://www.velocityfinancial.co.nz/disclosure-statement.

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