You know what’s interesting? Many clients like to compare their spending to the so-called “average.” It’s natural to be curious, but it’s essential to remember that your financial planner is less concerned with how you spend your money and more focused on helping you achieve your personal financial goals. 

You’re Not a Statistic

Statistics, while helpful for general insights, don’t capture the unique twists and turns of your life. I mean, who wants to be just “average” anyway? Managing your finances based on those averages or budget rule-of-thumb formulas can be a recipe for frustration. We’re not financial robots, and we don’t follow a one-size-fits-all script. We’re individuals with diverse incomes, dreams, and ways of living, which makes managing your money more about embracing your uniqueness than trying to fit into an “average” mold.

Your Priorities Matter

Let’s reframe the way we think about budgeting. It’s not about restricting your spending; it’s about empowering you to allocate your dollars towards the things that truly light up your life. Take dining out, for example – a hot topic for many. It’s often the first place where clients start blaming themselves for overspending.

But hold on – for some, dining out is more than just a meal; it’s a chance to connect and socialize with friends. And for those juggling the demands of a busy family or career life, food delivery can be a well-deserved sanity-saver.

Now, on the flip side, if you’ve got a passion for travel or find yourself daydreaming about that next home improvement project, you may need to consider reining in those food deliveries. Why? Not because your food spending is over an arbitrary percentage of your income, but because it helps you get closer to reaching a goal that matters more to you. After all, your budget should be a tool to help you invest in the things that bring joy and fulfillment to your life.

Start with Savings: Your Key to Discretionary Spending

Listen, I’m not saying you should go wild spending all your money. We all have limited resources, after all. But instead of sticking to arbitrary budgeting rules, start by figuring out what you have to work with and what your top savings goals are, then work backward from there. Let what’s left guide your discretionary spending decisions. Of course, it might take a bit of trial and error to find the right balance, but that’s all part of the process. So don’t stress too much about the details – just focus on your goals and what you can realistically afford.

By keeping your priorities at the forefront, you give your spending decisions a sense of purpose. Your money flows with intention towards the goals that matter most to you, whether it’s a dream vacation or an ample budget for food delivery. There’s no right or wrong way to do it – as long as you’re intentional with your spending and saving, you’re on the right track!

Conclusion

So, in the grand scheme of things, being “average” doesn’t quite cut it, does it? Your unique journey, your passions, and your dreams deserve a budgeting strategy that reflects your individuality. It’s time to move away from cookie-cutter budgets and embrace your priorities. 

Remember, your financial planner is here to guide you, not to judge your spending choices. We’re all about helping you achieve your personal financial goals, one step at a time. So, start with your dreams, prioritize them, and let your spending follow suit. 

Joann Nieciecki brings more than 20 years of experience in valuation consulting and advisory services to the Creative Money team. When she’s not busy having fun in Excel, Joann can be found spending time with her husband and two sons, watching Masterpiece mysteries, or <MASSIVE NERD ALERT> attempting to complete all the shrines in Zelda: BOTW. More about Joann here…