Budgeting is like planning for and executing your first race: it’s all about discipline and routine.
One of the best resolutions for the new year that people can make to improve their finances is to prepare (and follow) a budget. Budgeting is a fundamental financial planning tool and, without a budget, it’s hard to manage other aspects of personal finance including investing, insurance, saving, and credit, while trying to create a comfortable retirement.
Financial goals cannot be achieved if there is no money set aside for this to happen.
People who budget their money tend to be inclined to “budget” their lifestyle to create a daily routine of physical activity to maintain their healthy lifestyle. Thus, creating goals of running a race for the first time: the goal becomes achievable upon the execution of a plan.
Key things to know about Planning/’Budgeting’ for a race in 2024:
For people who are new to running, it’s sometimes difficult to know what to expect in a race, and it’s easy to be dismissive of your training.
This is why you must budget your training like you would do with your finances to create an end goal of winning your race.
Establish a Running Budget.
Before you jump right into running, setting a goal and training for a race, it’s important to know what your goals are. Much like your finances, you must have a plan which includes a starting platform, a strategy, and an end result.
The starting platform: this might mean building up an aerobic base using the run-walk method.
The strategy: Don’t worry about kilometres; focus on the amount of time you can run continuously. (Banking the kilometres, it all makes sense now).
The end result: Win your own personal race, which has nothing to do with anybody else’s goals or achievements. You want to do best for you.
Set a Goal and Work Towards It.
Once you’ve established your base-level plan, it’s helpful to set a goal for your race. Whether that is to finish, to set a new PR, or simply to get out there and celebrate being a part of the running community—every goal requires preparation.
Create a Routine and Stick With it.
It may seem counterintuitive to beginner runners to get your heart pumping before you run, but it can actually make a world of difference! The most important thing is to make sure your muscles and joints are ready to go and your mind is prepared to take on the workout. As much as you may want to get on with whatever you have to do after your workout, your body will thank you for taking the time to stretch out a little and thank it for all the hard work you just accomplished.
Whether you’re a seasoned expert or new to running, it’s easy to get caught up in the excitement at the start of a race. Remember to stick to your plan. Keeping yourself in control and trusting your Budgeting/Training will make a world of difference. It might be difficult, and you may face some challenging moments along the way, but remember that this is your moment: every step of the way you’re working towards your goal.
5 key takeaways to achieve 2024 budgeting financial success:
Positive Cash Flow is the Goal. A budget is a plan for future income, expenses, and financial success. The goal is positive cash flow—which means income greater than savings. Ideally, a budget should be completed with specific categories of income, spending, and dollar amounts.
Individual Factors are Important. Examples include individual needs and wants. Do you need it, or do you want it? And like the racers above, make it fun! It’s hard to commit long-term to things you hate, so be wise: once that question has been answered (want or need?) then the true savings can begin.
Savings is a Fixed Expense. How much do you need to save per month or per paycheck to fund future goals? This should be set aside as a fixed expense that stays the same from month to month in a budget.
Budgeting Methods Vary. Many people use the same budget format from year to year, adjusting for changes in income and expenses. What matters most is that you have a budget, not how you budget. (Like training plans. The important thing is that you run!)
Expenses Can be Trimmed. Experts recommend starting with flexible expenses such as heating/cooling, subscriptions, streaming fees, and food. Also, look for less expensive shopping options, do more cooking at home, and consider ways to reduce fixed expenses, such as refinancing a home mortgage, selecting a less expensive apartment or car and shopping for insurance policy discounts.
To create your own personal budget, try this. First, track your income and expenses for the rest of December to get accurate information about your current income and expenses and from that create a future plan to manage your money in 2024.
You can achieve your running goals. As readers of iRun, you know this. And you can equally achieve your budgeting and saving plans. There’s no better time to start than right now. For help along your way, including a free detailed asset map, please see henleyfinancial.ca.
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