The Savvy Life

We developed this philosophy because “quick fix” financial solutions don’t work, just like crash diets don’t work. You need a way of thinking that makes sense and that you will stick with for life. Being Budget Savvy does not mean doing without, scrimping and saving until you “hit it big,” and then splurging. What it really means is prioritizing your spending, so, regardless of how much money you have, you are getting the most from it.

The Budget Savvy Philosophy is about making choices, based on what is important to you, both now and in the future. This is an important distinction when compared to other money management approaches. It is about more than just getting out of debt or making your retirement savings grow. Both those goals are important, but money affects every aspect of your life.  We want to change the way you think about money as a whole. Think of it as a tool to achieve your goals. By focusing on what you want now, as well as in your future, you have a framework in which to evaluate your spending decisions. You can ask yourself, “is this dinner out worth postponing my trip to Italy?” or “is it more important to make that extra payment on the credit card or to have your hair professionally colored?” You will know what is most important to you, because you will have clearly defined those differences.

 By following this philosophy, you minimize impulse spending. The core of the Budget Savvy Philosophy is that every money decision you make is made in terms of your defined goals and choices, based on what is important to you.

• Will this purchase address one or more of the things I have defined as being important to me?
• Do I have a balancing purchase that I can economize on, in an area less important to me, to free up the necessary funds?

By asking yourself these questions before every purchase, you can make those purchases that support your important goals without feeling guilty. You know this is not an impulse buy, but one you have thought about. You have identified where the funds are coming from, and where you will be cutting expenses to keep your accounts balanced.

Being Budget Savvy does not mean doing without. It means taking charge of your life and making intelligent decisions about where you want to spend money and where you want to save money so you can enjoy life with the money you are making right now. The best part about this philosophy is that it works whether you are making $10,000 or $110,000.