What Are Some Money Mindset Tips for Budgeting?

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When it comes to budgeting, people may have mixed feelings. On the one hand, they may understand how budgeting can help keep them from overspending, which will help keep them from going into debt and allow them to have enough money to save and invest. But on the other hand, people may think budgeting takes all the fun out of having money, plus they may not even know where to begin if they’ve never done it before.

People with these mixed feelings may want to consider shifting their money mindset when it comes to budgeting before looking into ways to actually budget. Although most money affirmations focus on abundance and there being an endless supply of money—because there is—it’s also important to remember that true wealth is usually built by saving and investing properly. That means you can’t spend everything you receive.

So, here are five positive money mindset affirmations for people who would like to become better at budgeting (or who would just like to start).

5 Money Affirmations for Budgeting

1. “I live below my means.”

   This is an essential part of the process of building wealth. If you always spend everything you make, you end up living paycheck to paycheck, even if you’re making six figures or more. And that means you never allow your money to accumulate or grow.
   
   While you can tell yourself money affirmations like, “All the money I spend comes back to me multiplied,” that doesn’t mean you have to spend all the money you have. If you would like to build wealth, you have to hold onto at least some of what you make or receive.
   
   Living below your means doesn’t mean you have to sacrifice every pleasure or luxury, though. Budgeting principles like the 50/30/20 rule allow you to spend money on things you want in addition to the things you need. (According to this rule, you spend 50% of your after-tax income on needs, 30% on wants, and 20% on savings.)
   
   Also, if you tend to feel guilty for spending money on yourself, this method can help you feel less guilty when you decide to spend on things you want because you’ve already set aside money specifically for that purpose. Being able to live below your means allows you to budget and start building wealth while still having fun with your money.

2. “I’m preparing for my financial future.”

   Remembering why you’re budgeting can make it easier to stick to a budget. If you just budget because you feel like you’re supposed to or because someone told you to budget, that might not be enough incentive for you to do it. But if you understand that what you’re doing is laying a foundation for your financial future, that can help you stick to your budget.
   
   You can remind yourself that, by doing this, you won’t have to stress about your finances in the future. You won’t have to worry that you won’t be able to stop working when you want to because you’re living paycheck to paycheck. You won’t have to worry that you won’t be able to afford to live the lifestyle you’ve grown accustomed to when you get older.
   
   While it can definitely be tempting to spend everything you have as a way of enjoying your life now, preparing for your financial future can help you remind yourself that you want to have fun and enjoy your future, too. But you have to start preparing for that future now, and reminding yourself of that can help motivate you to stick to your budget.

3. “I regularly set money aside to meet my financial goals.”

   Financial goals can be things like paying off debt, buying a luxury item, or becoming financially free. All of these things will require you to set aside money that you could use now, but that you’re choosing to save for later.
   
   Using this affirmation to remind yourself that you actually set money aside for these purposes is a way to help yourself build this habit. Saying this can be especially helpful if you’re not used to setting your money aside for specific purposes.
   
   Before you put aside this money, though, you have to decide what your financial goals are. Your goals will depend on your personality, your tastes, your preferences, your interests, your desires, and your desired lifestyle. So, you should create financial goals that work for you. If you’re trying to meet goals that fit someone else’s lifestyle, it might be harder to see the benefit of budgeting.
   
   For example, some people believe they have to wait until they’re much older to stop working, or at least stop working out of necessity. But it is possible to stop having to work, or become financially independent, long before it’s traditionally done. (People may refer to this as retiring young, but I personally don’t like the concept of “retirement.”)
   
   And if you would like to become financially independent before it’s traditionally done, that’s a financial goal that will encourage you to do things like budget. So, pick your financial goals first, then commit to setting aside money for them regularly to help you reach them.

4. “I wait before upgrading my lifestyle.”

   Lifestyle inflation is something that can keep people from becoming financially free or independent because it can force them into the position of having to live paycheck to paycheck.
   
   What happens is, when people start earning more money, whether through a raise or another income source or something like that, rather than keeping their spending essentially the same, they upgrade their lifestyle as their money increases. But then they end up having to spend more on their new lifestyle, and they end up back in essentially the same financial position as they were before.
   
   Instead of upgrading your lifestyle when you have access to more money, having a budget based on percentages will ensure that you can continue to provide for your needs, while also having money left over for your wants and for saving and investing. Eventually, you will get to a place where upgrading your lifestyle makes sense, financially speaking. And if you decide to upgrade it then, that’s fine.
   
   But this affirmation can encourage you to wait until then to make the change. That way, it won’t be such a big financial burden on you and you can enjoy the changes without the stress that comes with upgrading too soon.

5. “A percentage of my income is all I need to fulfill my needs and wants.”

   Just telling yourself this is a great reminder that you don’t have to spend everything you make or receive. Imagine, for a moment, that you’ve just added a passive income stream to your income that now allows you to make significantly more money than you did before. You’ll definitely want to avoid lifestyle inflation (see #4) when this happens, but you might also want to consider this.
   
   While you can continue to use the same percentages for your budget that you did before, you can also change the percentages at this point. If you were comfortable with the amount of money you were spending on wants and needs before, you can actually use a higher percentage of your total income now for saving and investing.
   
   But that’s just an idea. Whatever you choose to do, remembering that you don’t need to use all the money you receive right away is a way to help you reach your financial goals faster.

Final Thoughts

Budgeting is just one way you can learn to manage your money better. And good money management skills can help you reach your financial goals and build wealth. But budgeting may not be intuitive to some people. If you’re in that group, I hope that the above money affirmations help you view budgeting from a new perspective.

Now I turn it to you. What positive money mindset affirmations would you suggest people use for budgeting?

~ Ashley C.

Note: The advice presented here is for informational purposes only. If you’re in need of professional financial advice, please see a qualified professional.