Experience Budget Freedom and iPad Mini Giveaway

The Lemonade Stand

Mention the word budget to some people and it’s like you uttered a nasty word. I feel the exact opposite. Budgets represent freedom versus restriction to me. And just like Liz does, I believe when you budget properly, you can budget for more, rather than less.

I’ve been a Certified Financial Planner (CFP®) for more than 20 years, and I’ve heard every imaginable reason why budgeting never works. And you know what — they are right. It wasn’t working for them because they were setting themselves up to fail. And unbeknownst to most of my clients, they were also teaching their children to dislike budgets too.

Our children observe how we handle money and will often inherit our money hang-ups, including our distaste for budgeting. Budgets are not the enemy. The lack of knowledge on how we spend our money is. The right budget can help you create the life you want for you and your family. And that is something you would proud to have your kids emulate.

2 Keys to Building Your Perfect Budget

Follow these two simple steps to create a budget that works with you, not against you.

#1: Don’t Make Your Budget Too Complicated

There seems to be a mistaken perception that in order for a budget to be effective, it must be complicated. This is simply not true. In fact, there is no one-size fits all budget, but there is one that is right for you. Many people set themselves up to fail from the get-go by creating an overly complicated budget that isn’t sustainable long-term. Ultimately, you may take bits and pieces of different budgets to create your own hybrid version. Do your research and try different methods until you find or create one that you will follow and keeps you honest (i.e. no overspending).

Success Tip: People have a tendency to get very rigid in their budgets. The one thing I know for sure is that no two months are a like. Even if every bill is the same, your day-to-day expenses are more likely to fluctuate month-to-month. So plan for those months where you have six birthday gifts to buy, etc. by giving yourself ample cushion. Once you know your preferred method for tracking your spending, now you can take a few minutes at the beginning of every month (or week) to review any additional expenses and adjust your budget accordingly. Otherwise, you can set yourself up to fail again because you didn’t account for one-offs or seasonal expenses.

#2: Know What Your Priorities or Goals Are

This is where it gets fun and the aforementioned budget freedom is created. Money is finite and every month we have regular expenses such as mortgage/rent, utility bills, car insurance, groceries, savings/investing goals etc. This is a good time to review those expenses to make sure you are getting the best prices and spending your money on things you use and value.

Or upon closer inspection, is there another priority or goal that you would rather direct your money towards? Many of my clients discovered that they spent money on low-priority items out of habit or complacency while believing that the things they truly valued were out of reach. Once they saw a clear picture of how they spent their money, they could redirect it to their top priorities. This is how budgets give you freedom. When you know where your money goes, you have the freedom to choose how you spend it. I suggest spending it on the things that matter most.

My girls are 10 and 8 and already have hands-on experience with budgets. While I supervise and offer guidance, they have become quite skilled at how to prioritize and compromise on their wants and needs. They don’t fear or resent budgets but see them as a tool that helps them make good choices. And most importantly, they also understand that you can still have fun, even when you follow a budget. And that is a lesson I will be proud to have my girls pass on to their future children.

Making Money Conversations Fun and Easy

Financial literacy is my passion, and it is easy for me to talk to my girls about money, but I know it’s a struggle for some parents. One easy and fun way to help you start these important conversations and shape how your kids think about money is through my children’s picture books. I’m pleased to offer Budgeting for More readers an exclusive coupon code TOUR3114 for $3.00 off my new book, The Lemonade Stand. Join Lauren and Taylor in their continuing money adventures as they teach their friends, Ryan and Christopher, how easy it is to save, spend and share.

About the Author: Shannon Ryan is a Certified Financial Planner and a Mom on a mission to help busy parents teach their children simple, value-based principles that guide their money decisions and support their long-term financial well-being.

The Lemonade Stand – iPad Mini Giveaway

July 14-31, 2014

Sponsored by The Heavy Purse

Co-hosted by Are Ya Gonna Eat That, Broke Millennial, Budget and The Beach, Budget Blonde, Budgeting for More, Busy Mom Budgets, Cash Cow Couple, Cents and Sensibility, Club Thrifty, Color Me Frugal, Debt Debs, Debt Roundup, Disease Called Debt, Eat Laugh Purr, Enemy of Debt, Eyes on the Dollar, Femme Frugality, Financially Blonde, Frugal Rules, Living Richly Cheaply, Luke 1428, Making Sense of Cents, Money Saving Dude, Monster Piggy Bank, Not Now Mom’s Busy, Reach Financial Independence, Shoeaholic No More, Stacking Benjamins, Tackling Our Debt, The Broke and Beautiful Life, The Finance Girl, The Frugal Farmer, The Random Path, Thrifty Dad, VeegMama and Young Adult Money.

We’re Giving Away an iPad Mini to One Lucky Reader!

Help us celebrate the release of The Lemonade Stand and join Shannon in her mission to increase financial literacy in both children and adults.

“Everyone handles money. Unfortunately, not everyone does it with confidence. Money has long been a taboo topic in many homes, which makes it even harder for parents to know where to start or what to teach. So I created a series of children books to help parents ease into these important conversations. Financial literacy is one of the most loving gifts you can give your children, and I encourage you to make money conversations a priority in your home.”

The giveaway runs from July 14-31, 2014 and is open worldwide.*

* A winner located outside of the United States will receive a cash equivalent prize via PayPal.

a Rafflecopter giveaway

Comments

  1. As our kids grow older, they will eventually learn about money with or without our help. As early as 3 years old, we can already teach them about saving. Let’s say, your child wants a Lego set that costs $20 but they only earn $5 per week, explain to them that they will need to save up for four weeks.

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    Alicia @ Monster Piggy Bank recently posted…The Lemonade Stand Book Review & GiveawayMy Profile

  2. I will be using my review copy of this book to teach my son about the spend, save, share principle.
    Grayson @ Debt Roundup recently posted…Ebates Review – A Free Cash-Back Shopping ProgramMy Profile

  3. I think a big mistake people make in budgeting is creating complicated budgets. The more complicated you get, the more challenging you make it to follow the budget. I personally like a goals based budget because it gives you something positive to focus on and helps simplify your choices along the way because anything that detracts from your goal can easily be removed from the budget.
    Shannon @ Financially Blonde recently posted…Music Mondays – Taking ChancesMy Profile

  4. I agree on not making the budget too complicated. I use a simple excel spreadsheet to this day. Mint.com really confused me and I liked to have control over my inputs. I don’t know how I ever lived without a budget!
    Tonya@Budget and the Beach recently posted…Random Sunday ThoughtsMy Profile

  5. You got it, Alicia. I think 3 is the perfect age to start having simple money conversations with children. Helping kids understand the cost and the joy of saving for something they truly want is a great lesson to teach kids.

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  6. Fantastic, Grayson! That’s what I love to hear! 🙂

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  7. I agree, Shannon. For whatever reason, people just LOVE to make complicated budgets that are almost impossible to follow and certainly not long-term. A goals-based budget is a great option. Like you said, it keeps people focused and working towards something they want, which helps make it easier for them to follow. 🙂
    Shannon @ The Heavy Purse recently posted…Introducing The Lemonade Stand and iPad Mini GiveawayMy Profile

  8. One of my favorite things about budgets is that there are so many ways to track your spending. Some love mint. Others love spreadsheets or a pen and paper. It doesn’t matter as long as you follow it. So many people feel the same way once they start budgeting. It really makes a difference when you feel in control of where your money goes.
    Shannon @ The Heavy Purse recently posted…Introducing The Lemonade Stand and iPad Mini GiveawayMy Profile

  9. I used to be SO afraid of budgets: I think I thought they were too restrictive, however, now I’ve found the amazing freedom that a budget gives!
    Laurie @thefrugalfarmer recently posted…The Lemonade Stand – a ReviewMy Profile

  10. Charlotte says:

    I’m teaching my daughter about budgeting by allowing her to make her own “fun fund.” At the end of the month, when she gets a little money from pet-sitting our neighbor’s cats, we take a portion of her money and put it away for when she wants to spend it on something fun. The rest goes in to savings. She has been really excited about it!

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  11. I haven’t really made a budget, ever. I have started to track our income (going on two years now) and I try to make it as simple as possible. I have an Excel spreadsheet that I populate our spending/income once a month and have it down to only about an hour to two hours max to update. Finding a system that works is key, and as you said – the simpler the better.
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