Zero in on Your Finances: How Zero-Based Budgeting Can Benefit Stepfamilies
Budgeting. It’s a word that can evoke feelings of restriction, scarcity, and even shame. But what if I told you that budgeting could be an important tool for financial freedom and abundance?
In this post, I’ll break down the importance of having a budget, offer a new perspective on what a budget can mean for stepfamilies (aka blended families), and introduce some tools that you use if you’re keen to get started.
One of the main reasons people struggle with the word "budget" is the negative connotation it can carry. It's easy to associate budgeting with a limit, or a feeling of scarcity, which can be especially difficult for stepfamilies (aka blended families) who may already feel like they have fewer resources to work with (those child support payments can certainly have an impact on the stepfamily’s overall budget - am I right?).
However, budgeting doesn’t have to be about restriction, but rather about intentionality and planning. Heck you don’t even need to use the word “budget”! Think about it in terms of a plan for your money. You’re simply being more mindful and deliberate with your money. Is your weekly trip to Starbucks very important to you? Maybe it is your opportunity for some one-on-one time with your teen. Great! No judgment here. Make that a priority in your budget. A budget is your plan, based on your priorities.
For stepfamilies, money issues can be complicated. From child support payments coming into and leaving the household to individual expenses for stepchildren, there are a lot of financial factors to consider.
This is where zero-based budgeting can come in. What is zero-based budgeting? Zero-based budgeting involves creating a plan for every dollar you have, by assigning each dollar to a specific expense or savings goal. This method can help you prioritize your spending and ensure that your money is in alignment with your values and goals - whether that is an individual goal or a shared goal for the family.
Old-fashioned envelope stuffing is one type of zero-based budgeting. I’ve noticed this method gaining popularity lately online, which is pretty cool! There is nothing quite like the feeling of earning and then divvying up cold hard cash to match your priorities.This style involves dividing your cash into envelopes (or a binder with pretty dividers), each labeled with a specific expense category. You then only use the money in each envelope for that expense or, as needed, move cash from one envelope to the other. This method is regaining popularity as people are looking for more tangible ways to manage their finances in the digital age. However, the downside is that it doesn't always work well with online shopping and electronic transactions and it can be a bit awkward dealing with all of the cash.
Another popular tool for zero-based budgeting is YNAB (You Need a Budget). This app can help you look forward and tell your money what to do, rather than simply tracking spending that has already occurred. The beauty about YNAB is that it can be customized for stepfamilies depending on how their finances are structured (shared, separate, or a combination of both), allowing you to create multiple budgets that reflect your blended family’s unique financial circumstances.
Conclusion
Do I really need a budget? Yes, I believe that everyone needs a budget, regardless of income. Zero-based budgeting can help you prioritize your spending and ensure that every dollar is going towards something that aligns with your family’s values and financial goals. There is no better time to start budgeting than today!
If you need a little help in setting up a plan for your money, I offer money coaching for stepfamilies. If you are interested in putting a money management system in place that will reduce your stress about money and help you reach your stepfamily's financial goals, please book a free consultation. Spots are limited.
