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Find out a simple and innovative way of viewing your money so you can start saving more.

Are you strapped for money, barely making it from paycheck to paycheck? If you are stuck in this cycle, know that you are not alone and whether you have a ton of money or just a little, creating a budget is a lifesaver. Although not every budgeting technique works for every situation, there are some valuable tips you can follow to conquer your own money woes.

A Key Tip

One huge tip for budgeting is to shift the way you perceive money. Most people view money as an asset or a diminishing resource, but a simple shift of perspective can have a huge, lasting impact.

Begin to view money in terms of energy, or think of money as time (as the old saying goes, “Time is money”). When you go to buy something you may not actually need but really just want, view that item in terms of how long it will take you to actually pay for it. That nice new shirt is going to cost you two hours of your life. Is that worth it?

Needs vs Wants

As you begin to view spending in terms of the energy or the time it will take to earn that money, you will see a more clear differentiation in your needs versus your wants. With each item you purchase, run that cost through the filter of whether you need this item or whether you want this item. If it’s a need, weigh the cost of the item in terms of how much time it takes you to pay for it and decide: is it worth it?

Use this technique to work less or save up for something special or even pay off debt. It may seem like the savings are small at first, but over time these little chunks add up to some big savings. Not only will this new technique help with your budget, it will also have an effect on your overall material footprint and create greater financial freedom.

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Key Points:

  • Creating a budget is a financial lifesaver.
  • Begin to view money in terms of energy, or think of money as time.
  • As you begin to view spending in terms of the energy or the time it will take to earn that money, you will see a more clear differentiation in your needs versus your wants.

Quote This:

Remember that time is money. -Benjamin Franklin

Talk About It
  1. What is your initial reaction to this topic? What jumped out at you?
  2. Do you use a budget currently? Why or why not?
  3. What’s something you’ve purchased that has cost you a lot of “time” that you later realized would have been time better spent on something else?
  4. When an item’s cost is associated with time, how does that change its perceived value?
  5. How could this technique improve your spending habits?
  6. Write a personal action step based on this conversation.

This topic is adapted from the Exploring Alternatives YouTube channel.