Rigid Budgets Break: Why Flexibility is the Secret to Financial Success

Recently, during a brainstorming session with a fellow YNAB coach, he asked me a great question:

"What are the most impactful messages or ideas you’ve shared in your workshops?"

Three simple but powerful concepts came to mind—core ideas that can make or break a spending plan:

1. Give every dollar a job
2. Be flexible
3. Include some fun

Let’s take a closer look at each one.

1. Give Every Dollar a Job
(AKA: Create your spending plan)

Add up all the cash you currently have on hand—in your checking account(s), and savings account(s). Put that total at the top of a page, spreadsheet, or your favorite budgeting app.

Then, ask yourself:

“What does this money need to do before I’m paid again?”
Start assigning dollars their jobs, beginning with the most urgent things: housing, groceries, and upcoming bills. Write down how much you need in each category, and subtract as you go.

If you still have money left, ask:

“What larger, less frequent spending do I need to prepare for?”
Think of things like car repairs, holidays, or annual subscriptions. By treating these like monthly bills and setting aside a little each month, you avoid being caught off guard when they arrive.

Still have dollars to assign?

“What can I set aside for next month’s spending?”
Getting a month ahead means the money you earn this month won’t be spent until next month. That creates breathing room and peace of mind.

Next, ask yourself:

“What goals, large or small, do I want to prioritize?”
A weekend getaway, a new video game, a future home? Decide what matters and assign dollars accordingly.

These questions guide you to make intentional, proactive choices with your money.

2. Be Flexible
(AKA: Change your plan as needed)

One of the most important questions to ask yourself as you're following your spending plan is:

“What changes, if any, do I need to make?”

Life rarely goes exactly as planned. Your spending plan reflects your best guess based on the knowledge you had at the time. But things change.

For example, maybe you planned to buy new work clothes because you’ve been wearing the same few outfits for months. But then you find out an old college friend is visiting, and you’d love to take them to that restaurant that always reminds you of your time together.

You re-evaluate, and decide the experience with your friend is more important right now. So you change the plan—and that’s a win.

The real goal is alignment: making sure your spending reflects what matters most to you in the moment.

A rigid plan that can’t adjust? That’s not realistic. Rigid budgets break.
Flexibility allows you to stay connected to your values, even when life shifts.

3. Include Some Fun

Another way spending plans fall apart is when they’re all restriction and no joy. Living under constant financial pressure without a little breathing room can wear you down and cause you to give up.

It’s important to make room for guilt-free spending, even if it’s just a little.

Whether it’s $5 for a treat, money for hobbies, or a monthly fun category, allowing yourself a bit of freedom is part of what makes a plan sustainable. If you're part of a couple, be sure both of you have dedicated fun money.

This isn’t about reckless spending—it’s about recognizing that money should be used for both stability and enjoyment. A good plan supports both.

Final Thoughts

These three principles—giving every dollar a job, staying flexible, and making room for fun—aren’t just budgeting hacks. They’re mindset shifts that create long-term success.

If your plan feels too rigid, try adjusting your approach. Build in space to adapt. Build in joy. And keep coming back to those five questions—they’ll guide you every time.

Let me know how it goes—I’d love to hear what changes you notice.

P.S. Not sure what your next step is? Here are a few ideas:

• Want to chat about your spending plan? I hold open office hours every second Wednesday at 10:00 AM MT. They’re free and open to the public—you’re always welcome.
• Looking for more encouragement and practical tips? Subscribe to my monthly newsletter for fresh insights delivered to your inbox.
• Ready to get hands-on support? I offer one-on-one coaching to help you align your money with what matters most.

Wherever you are on your financial journey, I’d love to support you.