Build a Fence with Your Budget [Video]

As we continue our series of videos from my sermon on running hard, this week I am talking about the cornerstone tool in your personal finance: your budget.

What do you think of when you hear the word budget?  Does it scare you?  Does it make you defensive?  Does it stress you out?

A lot of the emotional reactions that you have to a budget have to do with a fundamental misunderstanding of the purpose of the tool.  It’s purpose is not to tell you what you cannot do – it’s main role is to help you understand what is happening with your money.  It puts a fence around your money and allows you to watch what goes out – and what events try to come in an disrupt your plans.  When I explain this concept, I like to use the story that I share in the video below.  In the video, I also talk about another tool that I have found very helpful over the years to help people see what is happening with their money: the Money in Motion table.