This week’s blog post is a guest post by the wonderful, Luke Smith. Thank you Luke for writing this for us.

It seems like everyone is looking for ways to be more productive these days. Whether it’s mindfulness exercises, more time with friends and family, or trying something new, there are so many ways to improve your productivity. Including being responsible with your finances.

Financial stress is one of the biggest killers of productivity. When you’re stressed about money, it’s hard to focus on anything else. All of your energy and effort is tied to ensuring you have food on the table, clothes on your back, and a roof over your head. And that often means being in careers that don’t necessarily align with your passions, working long hours at those jobs, and the job responsibilities being so draining that you hardly have anything left for the rest of your life.

In other words, your productivity depends on you becoming more financially responsible. Budgeting specifically can help you create a solid financial foundation. When you learn to live below your means, you can focus more on doing things that make you the most productive in life. So let’s dive into a bit more about how budgeting can boost your productivity.

A Focus on the Future

Your productivity doesn’t begin and end with your work. Being engaged, effective, and efficient in your personal life is just as important. And a massive part of a productive personal life is preparing for the future. Creating space in your budget for saving for future big purchases and retirement can keep you enthusiastic about your future, and that, in turn, boosts your productivity.

When it comes to saving for big purchases, you learn to think twice about unnecessary purchases and engaging in irresponsible financial habits. You’re also adequately prepared when it’s time to make those purchases. And that makes it less likely you’ll back out of them or be deemed unable to move forward.

For example, one of the main reasons people get cold feet when buying a homeis the financial obligation and being unsure if they can meet it. So, with particular attention to your budget and how much you allocate toward saving for a home, you can achieve this huge life goal and be more motivated to continue setting and crushing goals in the future. And that, in turn, positively impacts your productivity levels.

Also, creating a space in your budget to save for retirement keeps you excited about the future as well. Opening a self-directed IRA, SEP, or Solo 401k and contributing to it consistently makes your priority real, not just an ideal. And as the account grows, you become even more motivated to continue working hard.

But as you focus on the future, you can’t forget how important it is to enjoy the present.

Enjoy the Present

A big part of your productivity comes from enjoying the present. But, unfortunately, many people become burnt out from being overworked, underpaid, and knee-deep in a messy financial situation that seems so far from ever being resolved. And that often leads to a life of constantly worrying about the future, condemning yourself for your past, and completely ignoring your present.

When you can’t enjoy the present, you’re less likely to lead a productive life because you can never seem to find the goodness and relish in it. Also, it leads to a pessimistic view of life, asking what’s the point instead of why not. And that attitude is detrimental to your productivity.

But through budgeting, you can enjoy the present by doing more of what you love responsibly. Create a category in your budget for money to spend on entertainment and activities every month. Additionally, create a savings category for more significant recreational activities like traveling. Ultimately, doing things you enjoy more often stimulates an appreciation for the present necessary for high productivity levels.

Having a better attitude about finances also boosts your productivity. Fortunately, budgeting can lead to a better financial outlook.

A Better Outlook on Finances

A huge part of becoming more financially responsible is your mindset and attitude. In other words, if you see no value in budgeting, are close-minded about how to create streams of income, and don’t see the purpose in educating yourself on financial concepts, you’re not likely to improve your financial situation. And that negativity can seep into other parts of your life, causing your productivity levels to decrease.

You don’t become financially responsible to be the flashiest, have the most expensive things, or take the most lavish vacations. Instead, you do it to live happily within your means and use your disposable income to generate more revenue to secure your future further. Luckily, a budget can help you adopt a positive outlook on finances.

For example, when you create a budget, you appreciate finding ways to save on everything, including your utility bills. Adopting energy-efficient cooking methods is one way you can do this. Using a microwave oven instead of a conventional oven reduces your power usage by as much as 80%. As part of your budget, you could turn around and invest utility-bill savings, which is a productive way to create more income.

When you establish a lean and mean budget, you ultimately learn to love your life less for luxury and more for how you secure your future, take care of yourself, and engage with the world around you.

Conclusion

Budgeting is an excellent way to boost your productivity. It allows you to focus on your future, enjoy the present, and adopt a better outlook on finances. And that leads to a willingness to work hard and remain productive for years to come.

Luke Smith is a writer and researcher turned blogger. Since finishing college he is trying his hand at being a freelance writer. He enjoys writing on a variety of topics but leadership and digital marketing topics are his favourite. When he isn’t writing you can find him traveling, hiking, or gaming.

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