Getting back in the budget saddle

I missed posting last week, mostly because I was nestled in a shame spiral about my spending – fun! Self reflection is always challenging, for me especially when it’s something I think I am doing well at. I started this blog from the perspective of ‘I am largely sticking to my budget’: ‘I am in a good place and want to get better’: ‘I’ve a five year plan and few doubts.’

O. M. G.

So it’s partly been the habit-trashing of COVID and the change to being without additional help from my family, contact with friends, or regular travel with work. But it’s also been just taking my eye off the ball. I realised last week that I don’t really track my budget any more as I am spending, something which happened when I started using my Danish account instead of my Monzo card which tracks all spend for you against a pre-set budget. Instead I review spending a few weeks after month end, and it becomes an inventory of my stupid.

After some initial reflection last week I concentrated on getting the two gnarly issues sorted from my budget. The first was getting a realistic view of the utilities budgets. In Denmark, there are no price comparison websites and few options when it comes to utilities providers. A proper review of these costs show I spend £405 per month on utilities – almost £5,000 per year, and significantly under what was in my original monthly budget. I also looked at kids clubs and holidays – action there is TBD since the options range from cutting it altogether to reducing it significantly, and this can only be done through more of a lifestyle prioritisation exercise. It will also depend if my parents can help out with holiday childcare again post-COVID – whatever post-COVID looks like…

It was also useful to give myself a break and think about self-talk on these issues. I love Brené Brown and she has some great advice on money and shame. It’s important to note that as a single mum, whilst I can have conversations with others, I am responsible for all the decision making – and praise or blame. And personally I find that the FIRE community can be quite light on failure, sending you back to Dave Ramsay if you get stuck in early stages. However, since shame spirals are characterized by feeling like everything compounds the original feeling, I can also believe this is my perception. With that said, I’m sharing the tips I found most relevant:

  1. Show yourself compassion. Interestingly Harvard Medical School’s paper on self compassion covers a lot of the micro-habits I have been trying to put in place recently – from journaling to meditation. The tips about ‘comforting your body’ also opened up other ideas. As Jen Sincero says, we can treat our bodies like a windsock flailing behind our brains, doing ourselves harm but also missing opportunities to improve and support ourselves in simple ways.
  2. Be courageous. For me undertaking the calculations and spending reviews – then sharing them on this blog, are courageous. To be even more so, I need to start tracking spend during the month to look it in the eye on a regular basis, and be brave enough to stop spending, say no, or course correct.
  3. Celebrate the small wins. This I really struggle with. Some of the small wins are really small, and when they turn into habit I don’t appreciate them anymore. Examples like packing lunches for work, cycling to the office, choosing free weekend activities and so on don’t get noticed. Here I need to create small goals such as no-spend days – or indeed just sticking to the damn budget for things like eating out – and celebrating those.

So – aluta continua! How do you keep going when things aren’t going well?

Image credit: https://alchetron.com/A-luta-continua