How a cute purse can help you reach your financial goals

Money management ideas for the faint-of-heart

Okay, so I’ll come right out and say it:

Budget.

Sounds terrible, doesn’t it? It almost sounds like “diet.” Add a little free association and you get cutting back, cracking down, belt-tightening, and more. (cringe)

You’re smart – you realize that a budget is a good thing, but what’s a creative person to do with all these painful-sounding restrictions? Ouch! And yuck!

Nerdy words

When I find myself confused about a term, I usually look it up to see where the word came from (thanks, Mom). In this case, I am in complete resistance to the word budget (maybe you are too), so I looked it up.

What I discovered was fascinating! Budget is derived from French, Celtic, Latin, and Old English and means “leather pouch or bag.” In fact, the Middle French derivation, bougette, actually means “cute bag.”

Leather pouch? Cute? These are not exactly the words one associates with budget.

Further inspection

The dictionary also had a long and scary definition of budget that would have made an MBA or CPA grin maniacally. Let’s ignore that part and stay with the word origin instead.

The thing I love about the leather pouch is that I can imagine holding it. You can really imagine the softness and smell of leather and feel the weight of your money inside it. It’s an evocative image, this bougette.

With your bag in hand, you can imagine going to the market in Old England and spending what you had in the pouch – arriving home with an armload of tallow, fresh eggs, and cloth. Tactile yum-yums!

Modern day hiccups

Confession: My relationship with money (like a lot of people’s) hasn’t always been healthy. Neglectful, even.

Most of my spending is virtual (debit cards, online purchases, online banking, etc.). I’m a whole step removed from that leather pouch because I have only theoretical numbers instead of real live coins and bills.

The convenience of virtual financial transactions is a huge time-saver, but some money gurus say that it’s better to use cash, because you can hold it in your hand. It’s real. Make your own determination on this, but I believe that the outcome of virtual spending in my life is not knowing where it goes and spending more than what’s in the pouch.

The reality is…

Abundance theorists will hate me for saying this, but there’s a finite amount of money in the pouch. Someday you can grow more, but right now, you have what you have.

The leather pouch, the budget, creates structure. Without this structure, your money slips away, bouncing down the cobbled streets and willy-nilly into others’ hands.

The walls of the pouch, the budget, help support who you are and get where you want to go. And knowing the exact nature of the container means you can plan what you do with the contents.

Dood! What does this have to do with organizing?

Ha! Have I drifted too far afield? I’m having a lot of fun with this Old England analogy.

Okay. If you have dreams and goals for yourself and your business, get familiar with the shape of your container. Consider spending time developing a healthy relationship with your money facts.

A budget isn’t about sacrifice. It’s about making decisions that are in alignment with your goals. That’s all.

For example, if your goal is to be gainfully self-employed doing work you love, buying a yacht might take you off course by giving you debt you can’t afford. If you dream of building a home for your family, buying decor and furnishings beforehand might delay the groundbreaking. That new (fill in the blank) might look adorable, but how does buying it fit with your goal of being debt-free? Just notice.

There are no right answers. There are only actions that bring you closer or farther from your goals and dreams. You still have to live while you’re reaching those dreams, so be kind to yourself.

Things to try:

To organize, become familiar with your money container, your bougette.

1. Write down your answers to the following questions: What do you dream of doing with your life? What are your goals?

2. Determine your average monthly income (the money in the leather pouch) and monthly expenses (what you let out of the pouch) based on your current income and spending. Remember to add in expenses (like insurance) that happen less frequently than once per month.

3. Draft a spending plan (budget) that will support progress toward your goals. Adjust it as time goes on to reflect the realities of life. Be sure to celebrate your progress!

And let me know how it goes!