Hot takes on budgets. Prepare to be mind-blown. Spoiler Alert: Budgets are #cancelled.
$$$ This Is How You Get Money $$$
When it comes to budgeting…don’t. It doesn’t work. Try this instead:
- Save first and spend the rest. Aka pay yourself first. Set aside savings before you spend money each month.
- Spend less than you make. That might sound obvious but if you spend less than you make you will have money left over at the end of each month to save.
Here are three tactical things you can try to manage your spending:
- If you have a spending problem try using cash and debit cards to manage your cashflow. It will cut down on what flows out of your wallet.
- The only way to know where you’re spending money is to track it. We’re fans of Tiller, a spreadsheet based expense tracker that links to all of your accounts.
- Setting up automated savings like contributing to your 401(k) or a seperate savings account is truly the best way to spend less. If you want a target, aim for saving 20% of what you make.
And if 20% feels like a lot, start with 1% of your take home pay and increase it every much. Start small and develop the habit. Even $10 a week is a great place to start.