During a conference I attended in 2008, the presenter delivered a powerful message: “Words matter.” This simple yet profound statement has shaped my life in numerous ways. I’ve become meticulous in choosing the right words to express my thoughts and emotions, realizing that language possesses the immense power to influence both people and the world around us. Our words serve as a reflection of our beliefs, morals, prejudices, and principles, shaping others’ perceptions of us and the issues we discuss. One domain where our language could benefit from a transformative shift is personal finance.
Rather than using the commonplace term “budget,” I prefer the term “spending plan.” Our spending habits are deeply intertwined with who we are – our beliefs, values, and experiences. Financial psychologist Preston D. Cherry aptly states, “Financial psychology is about the humanness of money; how people think, feel, and behave about their money and their relationship with money in the past, present, and future.”
The term “budget” can carry a connotation of restriction. Expressions like “tighten our belts,” “it’s not in the budget,” and “we are over budget” tend to make budgeting sound like a process of cutting back and eliminating. When we overspend or struggle to make sufficient cuts, it often leads to feelings of guilt, disappointment, or a sense of letting others down.
In contrast, a spending plan acknowledges the inevitability of spending. It embraces a proactive approach rather than a reactive one. A spending plan allows us to leverage our financial resources to achieve our goals while still exercising wise stewardship. By creating a spending plan, we grant ourselves permission to serve, experience, give, and achieve as we feel inspired. It’s a transformative mindset that encourages a positive and purposeful approach to managing our financial resources.
In essence, the power of words extends far beyond the mere construction of sentences – it shapes our financial mindset and, consequently, our lives. Embracing the term “spending plan” over “budget” is not just a linguistic preference; it signifies a shift in perspective. Let us grant ourselves the freedom to redefine our relationship with money, recognizing that our financial decisions can be a source of empowerment, not constraint.
As a call to action, I encourage you to give yourself permission to be you – to spend, save, and invest in a way that aligns with your values and aspirations. Your financial journey is a unique expression of your individuality. By acknowledging this, you embark on a path toward financial well-being that is both authentic and fulfilling.