What’s SUP With Your Budget?
September 09, 2013A few months ago, I wrote about my own retirement planning journey and a list of things that I plan to do along the way. The ultimate purpose was to find some balance between living in the moment and planning for the future. I’ve made some progress over the past few months and thanks to a friend who lives on a tidal creek, I was able to check a long awaited paddle boarding trip off my list.
Stand up paddle boarding or “SUP” has a Hawaiian heritage and is one of the world’s fastest growing water sports. Most paddle boards are wider than a surfboard and they provide an excellent way to enjoy the great outdoors, get a core workout, and catch a wave or just explore calmer waters. But as I approached the water with my friend’s paddle board in hand for my first experience, I was somewhat concerned about how many times I would fall off and whether or not I would fail miserably at keeping my balance.
Looking back to those internal struggles with self-doubt, I noticed that my first paddle boarding experience was similar to budgeting in many respects. The majority of Americans do not have a budget or personal spending plan in place. I’ve talked to hundreds of people over the years that tell me that they’ve tried budgeting before and it may have worked initially but they lacked consistency. In paddle boarding terms, they fell off the board and stayed down in the water treading away but unable to make real progress. Many others simply never got their plan in motion either due to procrastination or unrealistic goals. Here are some of the basics of paddle boarding and budgeting to consider if you are just trying to get back on your feet or looking to take control of your spending with a purposeful plan:
Have a float plan and let others know about it. I may be a novice paddle boarder but I’ve been kayaking and boating for years. I know that anytime you go out on the water, you need to have a float plan. Plan for the best and prepare for the worst.
The same is true with following a budget. You need to know your goals ahead of time and work in some flexibility into your plan for life’s unknowns. This is the simple concept of beginning with the end in mind.
When we approach financial planning tasks with a clear understanding of the “why” behind our behavior, the seemingly mundane tasks of budgeting shift into empowering action steps. I always encourage people to discuss the budgeting process with an accountability partner to help keep you on track or at least help track you down if you get lost at sea or end up a creek without a paddle (sorry, couldn’t resist that one). If you’re already married, then you and your partner need to be working together on this mission regardless of who is currently doing all of the paddling.
Resource: This SMART Goals Worksheet provides a good “float plan” for your financial voyage.
Use the right equipment for you. The paddle board that I used had a wide base and was easy to transport to the water. I also had a paddle that matched my height to ensure efficient paddling. Boards and paddles come in many different designs, shapes and sizes so it’s important to do some research in advance and choose the best one for you. Similarly, numerous personal budgeting systems exist and there is no magic program, system, or app that works for everyone. The best budgeting approach is the one you will actually follow and use to guide you throughout different phases of the financial life planning experience.
Resources: Some people prefer the ease and convenience of online budgeting tools such as You Need A Budget or Mint, while others like to track their income and expenses on spreadsheets or with paper and pencil (a.k.a. the “old school” method).
Don’t be afraid to ask for help. Although my first time out on a paddle board was a brand new experience, I did a little homework in advance to learn more about getting started. But reading about something or watching YouTube videos is much different than real world experience. That’s when I turned to my friend Ed for some helpful guidance. (I also warned him that my introductory paddle may end up in a blog post someday so a special thanks to him for sharing his board and providing access to one of the finest South Carolina Lowcountry creeks near historic Morris Island.) Once we approached the water, he simply instructed me to start on my knees, pop up quickly, and keep my feet wide on the board to stay balanced. Sometimes effective guidance and a nudge is all that’s needed to succeed.
Resources: There is no shortage of information out there regarding the process of creating a budget. At Financial Finesse we often use tools like an Expense Tracker, Easy Spending Plan, and our Budget and Net Worth Worksheet to help people spend with a purpose. If you need additional help getting your budget on track, never be afraid to either ask a trusted friend that has their financial life together for some tips or seek out a qualified professional (see Choosing a Financial Planner or seek out a financial planner through organizations such as NAPFA, Garrett Planning Network, or ACA). Financial coaches can help provide additional support as needed if you aren’t fortunate to work for an employer that offers a financial wellness program.
Maintain balance and always try to keep moving forward. There is nothing more frustrating than spending time and energy on a task with a nagging sense of self-doubt and fear of failure looming in the back of your mind. I have never gone surfing and this was my first attempt at paddle boarding so my mind was thankfully free of visual images and reminders of falling. But in the moments leading up to that first attempt to stand up, I decided to simply clear my mind and focused on the task at hand. My ultimate reward was the peace and tranquility of a picturesque afternoon that was the perfect setting for light exercise and relaxation. Just like it’s challenging to maintain balance on a stand up paddle board, it can difficult balancing competing financial priorities. Simply making time in our busy schedules to create and follow a budget or personal spending plan is an even bigger challenge.
Resource: Lack of time isn’t a valid excuse when your financial future is at stake! Check out this 9-Minute Check-Up to assess if you’re headed in the right direction.
Stay focused on the horizon. There was a moment of near disaster during my first paddling experience. After about fifteen minutes, I had found my rhythm but complacency kicked in and I simply lost focus. I started paying attention too much to my feet and was staring at the board and water wondering if I’d land on an oyster bed if I fell. The worst part was when I tried to peak over my shoulder to see just how far the journey had taken us.
This was a big mistake as I quickly (and awkwardly) fell to my knees. Thankfully, I landed firmly in the middle of the board, humbled by gravity and a momentary lapse of concentration. The message here is straightforward — don’t look back (and definitely don’t look down).
With budgeting and paddle boarding, it’s important to know where you’ve been but always realize you cannot dwell on the past. Budgeting blow ups, out of control debt, problem spending, and other obstacles should be an impetus for change not a barrier. Instead of dwelling on the past, try to use your previous experiences with money, both good and bad, as a guide to help you know your potential blind spots and your areas of weakness. Yes, this includes setting spending limits and preparing for those irregular expenses like vacations, insurance, holidays, or car repairs that don’t necessarily occur on a consistent month-to-month basis.
Resource: Planned Spending Account System
Luckily, I managed to stay dry during my first stand up paddle boarding experience, although there was that one close call. Even if I had completely wiped out and fallen in the water, my persistence and enthusiasm would have led me right back to where I started originally – find balance, start on my knees, pop up quickly with momentum and never look back. Those simple yet effective techniques are similar to the process of using a budget or personal spending plan to take control of your financial life. Don’t just quit if your first few attempts don’t go as planned and stay focused on the real reason you are budgeting in the first place – to accomplish your most important financial life goals.