I first heard of this idea on a podcast, I wish I could tell you who said it or on which podcast, but I can’t seem to remember. However, the speaker was describing the concept of a life budget. A budget of 3-5 things that you are willing to spend your money on that ultimately enhance your life. I thought that this idea was genius and I have been using it ever since (while still trying to figure out how to stick to a real budget).
What is a life budget?
Think of 10 things that you usually spend money on to enhance your life and write them down. It can be anything from professional development classes, dining, concerts, travel, books, video games, etc. Now, take that list and see if there are any themes. Write those themes on the other side of the paper. Finally, choose only 3 – 5 things on that list that are the most important to you. BAM – there’s your life budget. These are the things that you are willing to spend money on without a second thought. They should bring you the most joy and truly add to your everyday life.
A great example can be shown between myself and a few of my best friends. While I enjoy buying clothes, it is honestly not in the top 3 options of my life budget. So when they are talking about their most recent purchase, I cannot remember the last time I really went shopping.
Just like everything else, these budgets can evolve and change over the years. So evaluating yours is important every so often.
So tell us, what are your top 3?
Three women going through life.