Bills. Expenses. Debt. Savings …
There are a lot of hands reaching into your pockets and taking out money every month. If you’re like most people, then it most likely causes you to become stressed and sometimes feel as if all you’re doing is working to pay your bills.
Perhaps the problem isn’t how much your expenses are or how you’re managing your budget. Rather, the issue could be that you’ve forgotten to take care of one very important person in this whole financial arrangement – yourself!
Having “you-money” might not sound like the best use of your funds – especially if you’ve got high-interest debt to pay down or would like to increase your savings goals. But what it can do is give your budget a little breathing room and provide you with something positive to look forward to.
Here’s why you’ll want to budget for you when budgeting.
What’s In It for Me?
In the field of marketing, there’s a very well-known and silly-sounding acronym “WIIFM” (pronounced whiff-um). WIIFM stands for “What’s in it for me?”
The concept of WIIFM is simple: You’re more likely to attract potential customers if you can clearly communicate the benefits of a product or service.
A good example of this would be pretty much any new prescription drug advertised on TV. They all seem to follow the same script:
- Show a person suffering in pain
- Have them take this new wonder drug
- Instantly their life appears to become brighter, easier, and happier than before
Pharmaceutical companies have gotten this down to a science. They leverage the concept of WIIFM by showing how much better your life could be. In turn, this helps them to sell more products every year.
WIIFM Can Be a Motivator
WIIFMs aren’t just for increasing sales. They can also be used for motivating and influencing others.
For example, you and several coworkers might really need to stay late and finish up a project. In general, no one wants to stay late if they don’t have to. However, if you’re the leader of this task, then you might need to reiterate the following WIIFMs to the team:
- Positive recognition from the boss
- A potential financial incentive
- Positioning for a future promotion
To say it another way, there are incentives for doing a good job. Just knowing that there may be a reward, either now or later, helps you to stay focused and do what’s needed.
How Does This Apply to My Budget?
The same logic that can help businesses drive more sales or help you motivate other team members is the same tool that can be used to get you more engaged with your finances.
To put this in perspective, ask yourself: Would I rather …
- Devote every last dollar I make every month to paying off some long-term debt, or …
- Do the same thing but carve out a few dollars for myself to enjoy?
This small tweak in your financial management system could be all the boost you need to stick to the plan. Think about how much more motivating it would be if each week or month you had something fun to look forward to such as:
- Eating out at your favorite restaurant
- Going to see a sporting event, concert, or local event
- Taking lessons to learn something new
- A special trip to the spa or somewhere that relaxes you
- Etc.
Unfortunately, it’s when someone squeezes all the enjoyment of money out of their budget that things go wrong. They prioritize paying off everyone else and everything to the point where there’s nothing left in it for them. Obviously, bills must get paid. However, it would be far more encouraging to go to work and earn your paycheck knowing that there’s some payoff – even if it’s something small in the near term.
How to Work Yourself Into Your Budget
It can be tough trying to find extra cash for you to enjoy. However, working a little you-money into your budget can definitely be done. Here are a few suggestions for how to get started:
- Start small. Generally, the easiest way to work any new line item into your budget is to start with a relatively low amount. Try setting aside something like $25 or even $50 per paycheck – whatever amount you can afford and feel won’t disrupt your other financial commitments. If you don’t know, try keeping track of your transactions using a budgeting app like Buxfer.
- Build it up. With each paycheck, let your you-money slowly build up over time. This could be as easy as withdrawing money from the ATM and putting it in an envelope inside a drawer. If you have direct deposit and prefer to work all digitally, then have your you-money automatically transferred into a separate account – one that is just for you to enjoy.
- Commit to making yourself a priority. When money gets tight or unexpected bills arrive, don’t discount your you-money. Treat your savings priority with as much importance as any other bill or goal you might have. It’s a slippery slope once you break this habit, so don’t give in to the temptation to do it even just once.
- Permit yourself to spend. With all of the you-money you’re setting aside, don’t be tempted to use it for other purposes. As it builds up, you might start to have second thoughts or feel guilty about not using it to pay down your debt. However, give yourself permission. This money was meant for you to spend as you wish.
You Can’t Take It With You
There’s a very fitting story for this situation that involves former General Electric CEO Jack Welch. After nearly dying from a heart attack, he was later asked what was going through his mind as he was being rushed into the hospital for what could have been his last moments.
Welch’s response: “I didn’t spend enough money.”
Think what you will about Welch. However, this is a great reminder of how we often go through life putting other people and other priorities in front of our own goals and wishes. Unfortunately, we don’t realize how little opportunity we give ourselves to get what we want out of life until it’s too late.
While that’s a pretty extreme example, I do believe we can be more intentional with our money. However, that starts by making yourself a priority. Don’t wait for someone else to do it for you. Let taking control of your existence start with deciding where your money goes and what you’ll spend it on.
Featured image credit: Pexels
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