Budgeting vs. Planning: It’s About Time

jacobted Behavioral Finance, blog, Budgeting, Financial Planning

For most people in recovery, budgeting is an exercise that in the end confirms what they already know. Their expenses are too high, and their income is too low. They are then consumed by feelings of helplessness, hopelessness, and despair.

Budgets focus on the here and now. They are merely a snapshot in time. And for those in the early stages of recovery, from a financial perspective the picture is bleak. Early recovery emphasizes living one day at a time, which conflicts with the long-term perspective required to live a sober life.

Dreams are big and take a long time to achieve. When you combine dreams with a budget, we get a unique plan that the client takes responsibility for. Ownership changes their perspective. The whole conversation changes.

The focus shifts from ‘how did I get here’ to ‘how do I get out’. Instead of doing without, it’s doing more with less.

And most importantly, they learn the value of their time.