Why Budget? (Part 4): The Power of Written Words

In this short series, I have been discussing five reasons why creating a budget is important and a key factor in achieving your financial goals. Here are the other articles in the series if you need to catch up.

Reason #1: Budgeting Confronts Bad Habits

Reason #2: Budgeting Makes You Responsible

Reason #3: Budgeting Puts You in Control

Reason #4: Creating a Budget Releases the Power Gained By Writing Things Down

Many people understand the extreme power of words. Well, there is something even more powerful than that. The most powerful words are those that are in writing. When there is some sort of legal dispute, anything on paper is infinitely more powerful evidence than something that someone said. Regardless of which goal-setting system you use, they all agree on the importance of writing them down. In my own life, physically writing a daily to-do list increases the likelihood of me actually completing my goals for the day. When we use the power of writing to craft a budget, we release things that increase the likelihood of our success.

1. It Clears Up Our Desires: I don’t know if it is just me, but my mind can be a rollercoaster when coming up with ideas. Writing things down forces me to slow down and to state my intentions or desires in a succinct manner. I definitely don’t want to write a dissertation about everything that comes in my head, but I pretty much do that when I keep it all in my head. That results in a lot of important ideas getting lost in the clutter. Writing a monthly budget will help you clarify your financial goals.
2. Writing things down strengthens our memory: It’s one thing to think that you will spend $130 in an area and actually knowing that you will do so. Knowing that you will spend that much in an area such as groceries or gifts will help you remember your goals throughout the month, thus increasing the chances of you actually achieving that goal.
3. Writing Makes You Accountable: A written budget can act as a sort of contract with yourself or your spouse if you are married. You can even make a game out of it, seeing if you can spend less in areas than you planned.
4. Writing Helps You Journal Your Progress and Check Trends in Spending: A written budget can act as a journal, allowing you to see how far you have come, see how your spending patterns have changed, and to remind you of certain expenses that only occur during certain times of the year as a reminder to plan for those things in the future. Christmas is in December. Mothers Day is in May.  Three close family member’s birthdays are in October. Yearly membership dues for an organization are due in February. The insurance bill you pay once or three times a year is due in certain months. You get the picture.

Writing things down helps create the discipline needed to follow through on the goals that you set for yourself. If you put this power to use with your money by creating a budget, you’ll be one step closer to attaining your financial goals.

Question: In what ways has writing down a goal (in any area) helped you achieve it?