Expert insights from Living Smarter Jewish Financial Coach Stacey Zrihen on building a budget that provides clarity, confidence, and financial stability
Whether you’re just starting your career, raising a family, or planning for retirement, a budget can provide the clarity and confidence to make smarter financial decisions. Yet for many people, budgeting feels overwhelming, restrictive, or simply impossible to maintain.
Having helped thousands of people build healthier financial habits, Stacey Zrihen, senior director of coaching at Living Smarter Jewish, shares expert advice on creating a budget that works, planning for the future, and navigating the unique financial realities of Orthodox Jewish life.
Why is having a budget important at every stage of life, and what are some of the most common misconceptions that prevent people from creating one?
A budget is like a roadmap. You could reach your destination without one, but the journey is much easier when you know where you’re going. There may be traffic or detours, and you may need to change course, but at least you have a route to follow.
The same is true no matter what stage of life you’re in — whether you’re just starting out, raising a family, saving for the future, or simply trying to make ends meet. A budget helps you understand where you’re headed and adjust your course along the way.
One of the biggest misconceptions is that people think a budget is restrictive. The word itself sounds limiting, as though it’s trapping you. In reality, it’s just the opposite. It’s freeing.. When you have everything written down, you can choose intentionally where you want to spend your money instead of feeling driven by circumstances or assumptions. Rather than limiting you, a budget gives you clarity, confidence, and the freedom to make informed choices.
What would you say to someone who believes they don’t need a budget because they can simply track their bank statements?
I’d challenge them. That’s great — you know what’s in your bank account, what’s coming in, what’s going out, and maybe even the difference between the two. But what does your financial picture look like 12 months from now? What about three years from now? What are you working toward? And what happens if something changes? What if your side hustle takes off? What if it disappears?
Looking at your bank statement tells you where you are today, but it doesn’t tell you where you’re going. A budget isn’t just a record of what you’ve already done. It’s a plan for what’s ahead.
Once someone is ready to start budgeting, what is the simplest way to set up a system they’ll actually use?
The first step is to write it down. A budget that lives only in your head isn’t really a budget.
There are many ways to do that, but I think the simplest approach is a basic budget worksheet. I use a simple Excel spreadsheet at Living Smarter Jewish that lists what’s coming in each month, what’s going out, and the difference between the two.
I’ve been budgeting since I was about 10 years old, and I’ve tried just about every method out there — apps, notebooks, you name it. The more complicated the system becomes, the more it distracts from the purpose of budgeting. I always come back to that simple Excel worksheet because it keeps the focus where it belongs: What are you earning? What are you spending? And what’s the difference between the two?
For people who feel overwhelmed, Living Smarter Jewish offers free financial coaching. Sometimes having someone guide you through those first steps makes all the difference.
How can people create a realistic budget that reflects their everyday expenses, long-term goals, and the unique priorities of an Orthodox Jewish lifestyle? How often should they update it and plan ahead?
The key is not to think of your budget as static. I used to say your budget was like your fingerprint because everyone’s is different. But it’s actually nothing like your fingerprint, because your fingerprint never changes, and your budget should.
Start by creating an average monthly budget. For example, if you pay your accountant $600 once a year, your budget would show $50 per month. That’s your baseline.
From there, your budget should reflect your values and priorities. For someone living an Orthodox Jewish lifestyle, that may include line items for tzedakah, tuition, simchas, or other expenses. If you’re saving for retirement — which everyone should begin doing as soon as they start earning an income — a home, or another long-term goal, those goals should also have a place in your budget.
Then start tracking what actually happens. Compare what you expected to spend with what you actually spent. Over time, your budget becomes a living, breathing document that reflects your real life, not just your ideal plan.
If you’re new to budgeting, project one month at a time. As you become more comfortable, move to three months and eventually a full year. Planning beyond a year is usually only necessary when you know a major life change is coming, such as starting law school or spending a few years in kollel.
What practical habits can help people stick to a budget over the long term?
Budgeting is no different from any other area of life that requires discipline, whether it’s exercising, eating well, or keeping mitzvot. Seeing progress gives people the motivation to keep going.
That’s why it’s important to set goals that are meaningful to you. For some people, it’s watching their savings account reach a certain milestone. For others, it’s paying off debt or saving for a simcha.
One strategy we often use with clients who are paying off debt is the snowball method, where debts are paid off from the smallest balance to the largest. Even though it’s not always the fastest approach financially, it often works better psychologically because those early wins help people stay committed to the plan.
The same principle applies to saving. Small, intentional rewards after reaching meaningful milestones can make all the difference in helping people stick with a budget over the long term.
Should married couples have one shared budget, or should each spouse also have money they can manage independently?
I think it depends on the couple. Many people have no need for separate budgets, and that’s perfectly fine. The most important thing is having a budget together.
That said, it’s not unhealthy for each spouse to have a little financial autonomy. I think it’s very normal to have a line item in the budget that gives each spouse a certain amount of money they can spend however they choose.
It’s also not always necessary to account for every single expense. If you spent a little less on groceries this week so your family could go out to eat one night, I think that’s perfectly healthy. Budgets should provide structure, but they should also allow for flexibility.
Is there ever a point in life when it’s too late to start budgeting?
It’s never too late.
I’ve worked with people in their 70s, and budgeting can improve just about any financial situation. Of course, the earlier someone starts, the better. The sooner budgeting becomes a habit, the more natural it feels, and the more time you have to benefit from it.
I compare it to developing healthy habits. Is it better to start when you’re 20 than when you’re 70? Absolutely. But if you’re 70, you should still start. The same is true with budgeting.
Like any worthwhile journey, financial stability is built one step at a time. With thoughtful planning and consistent effort, anyone can make meaningful progress.
Stacey Zrihen, CFP, is the senior financial advisor for Achiezer’s Westwood Financial Management Program and senior director of coaching at the OU’s Living Smarter Jewish, a program that helps individuals, couples, and families achieve financial stability through financial education and practical guidance. Follow Stacey on Instagram at MakingCentsWithStacey.
For more Living Smarter Jewish resources, visit livingsmarterjewish.org. To be matched with a financial coach or to create a written budget free of charge, click on “Coaching options.”