Lending Club Blog

Budgeting doesn’t mean buying nothing

Ever mention the word ‘budget’ to people who don’t have one? Try it. Their faces contort in this weird mix between disgust and teenage angst. “A budget? I don’t need one—I want to spend the money I earn, not leave it until I’m old and can’t enjoy it.” That’s what the eloquent ones say. Most say something closer to ‘Go away.’

But these people just don’t get it. Budgeting is not about getting rid of fun. It’s not about saving all your money. What is it about? It’s about setting priorities. By creating a budget, you know exactly how much money you need to spend on living expenses and how much money you have available to spend on fun expenses. With a budget, you can go out to make a purchase without worrying that you don’t have the cash to pay for it.

I know of a couple people who make similar amounts of money and spend the same amount every month. One of them always feels guilty when she buys clothes or shoes, because she doesn’t know if she can afford it. My other friend has no problem buying a new iPod or computer, because he just grabs the money out of his technology envelope. At the beginning of every month, he redoes his budget to make sure he is set for the upcoming month and simply refills his envelopes. No guilt, no problems, but he’s still buying stuff he likes.

When you create your budget, one requirement is that you allow for unnecessary expenses. If your entire budget is for things that you should do but nothing that you want, you’ll never stick to your budget. Once you follow a budget that allows for things that you want to buy, you’ll find it’s easier to follow a budget than not. Getting rid of the guilty feeling makes the 10 minutes it takes to update a budget worth their weight in gold. Or shoes.

Wednesday, August 15th, 2007 at 12:17 pm

Comments (0)

Recommended

Types of Loans 101

Growing Your Business By Using Capital

9 Reasons to Open an IRA

6 Reasons to Get a Personal Loan

See more
Lending Club Awards
  • Archives z

Recent Posts

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016

Meet Patrick Dunne — Lending Club’s Chief Capital Officer

Patrick Dunne, Chief Capital Officer,… Read More »
September 8, 2016

Growing Your Business By Using Capital

Smart small business owners don’t wait to consider borrowing… Read More »
August 19, 2016

9 Reasons to Open an IRA

Retirement: a word that often comes with many connotations.… Read More »
August 5, 2016

6 Reasons to Get a Personal Loan

While it would be great if we all had enough… Read More »
July 29, 2016

Lending Club and the Marketplace Model

Some of our investors have observed the funding environment… Read More »
July 28, 2016

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w