Most people treat the word “budget” like it’s a punishment.
Something restrictive. Annoying. Overcomplicated.
“I work hard for my money, so why would I limit how I spend it?”
I get it. I’ve heard it all.
But here’s the truth:
A budget isn’t about restriction. It’s about direction.
When you build a budget based on what matters most to you, it gives you more freedom, not less.
Let’s walk through how to do that.
Reframe: What’s a Budget Really For?
When people think “budget,” they usually think:
• Cut back on eating out
• Spend less on fun stuff
• Sacrifice now for someday
But that misses the point.
If you’re cutting across the board, the difference has to go somewhere.
And that is where budgeting gets powerful.
A budget helps you spend with intention. You’re not just cutting back, you’re redirecting your money toward what actually matters to you.
That’s what a values-based budget does. And it’s easier to set up than you might think.
How to Build a Values-Based Budget
1. Start with what matters most
Before looking at any numbers, write down what’s important to you.
Are you saving for a first home?
Do you want to travel more?
Is health and fitness your top priority?
When your values are clear, you can cut back on what doesn’t matter and spend more freely on what does.
2. Cover the basics
Some bills simply have to be paid: housing, utilities, transportation, and so on.
Make a list of every recurring expense and when it’s due. Check your bank and credit card statements to catch anything you might miss.
For variable expenses like groceries or shopping, estimate the average. Over time, these numbers tend to stabilize.
Anything that isn’t tied to your values is an opportunity to cut back and redirect toward your goals.
3. Automate what you can
Any payment you can automate is worth automating. That includes bills and goals.
Set up automatic transfers to savings, debt payments, or investing.
The less you have to think about it, the more consistent you’ll be.
4. Leave some wiggle room
Budgeting is a living process. Life happens.
Once you’ve built the basic structure, add a small buffer in your checking account for unexpected expenses. A great starting point is $1,000 or one month of expenses.
Here’s the simple formula:
Income – essentials – buffer = money for goals
Tips to Make It Stick
Keep it simple
Start with a few broad categories. Add more detail only when it helps you stay focused or aligned with your goals.
Review weekly and monthly
Weekly: Look back at how you did and plan for what’s ahead.
Monthly: Compare actual vs. planned, then adjust based on what you learn.
This regular check-in builds confidence and clarity.
Use categories that work for you
Here’s a simple starting point:
• Housing (rent, mortgage, utilities, insurance)
• Transportation (car, gas, public transit)
• Food (groceries, restaurants)
• Subscriptions (phone, gym, streaming)
• Goals (emergency fund, house, vacation)
Adjust as you go. Your system should support your life, not complicate it.
Our Budget Over Time
Our core categories haven’t changed much.
But the way we use them evolves all the time.
When we were broke, we prioritized a small emergency fund.
Before a big trip, we funneled extra cash into travel savings.
When we wanted to buy a house, every spare dollar went toward that goal.
Knowing our numbers gave us confidence and flexibility. It took away so much stress.
We never felt restricted by our budget.
We felt focused.
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When you look at your spending through the lens of what matters most, you start to see money differently.
That’s all for today.
Thanks for reading.
-Drew
Hit reply and tell me:
What’s one thing you’ve spent money on lately that made you genuinely happy?