Do You Need a Budget if You’re Rich?
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One of the things that always irks me is when people associate budgeting with being poor. That’s why when people say, “I can’t do that. I’m on a budget,” instantly people think it means they must not have that much money at all.
However, I tend to believe the exact opposite. If you’re on a budget or you took the time to even create a budget, all that really means to me is that you are aware of your spending. It could be a very large budget or a very small one, but either way it’s just a tool people use to become financially independent.
I’ve been budgeting for a quite a long time. It’s the namesake of my own corner of the Internet. Because of all the years I’ve been budgeting and what it’s done for my life, I made the decision long ago that no matter how much money I made, I would always have one.
Do the Wealthy Need a Budget?
One day I hope to be wealthy, more for the security of it than anything else, and I do believe my husband and I will be at that point in just a few years. However, as I said, even if I get to the point where I have more money than even I thought possible, I will still budget.
As a disclaimer, there are many people like Mr. Money Mustache and the Frugalwoods who don’t use a budget at all, but that’s because they’re so accustomed to being frugal they don’t need one. I personally enjoy a a mix of frugal choices and occasional splurges, so a budget keeps me on track and allows for splurges, like nice date nights, as long as they fit in certain parameters.
So, I really advocate for everyone to have a budget because after a while it can be easy for the wealthy to keep spending because they know they’ll be receiving a big paycheck. That type of thinking is dangerous, and it leads to big surprises when the credit card statement actually comes in.
With Great Wealth Comes Great Opportunity
The real benefit of having a budget when you’re wealthy is that it gives you an incredible opportunity to become even more wealthy if you budget. Basically, if you’re aware of your spending and you decide to cut back in certain areas, you can absolutely invest the difference and increase your wealth dramatically over time. You can use a platform like Personal Capital to help towards that end as it allows you to track your spending while also keeping an eye on increasing your net worth.
It’s no fun to make a high income if you have to keep working until your 70s just to keep up the lifestyle you prefer. Instead, be grateful for the opportunity you have to earn a high income and then use that high income to eradicate your financial problems and create an ideal life for yourself both now and in the future.
It’s not about restricting yourself so much that you can’t enjoy anything; it’s simply about being aware of your spending so that every now and then you decide to pass on a luxury because you know you have other goals for your future.
Do you believe that the wealthy should have a budget? Do you think it’s okay to live without a budget? If you were wealthy, what would you use your money to do?