Are you Making this Budgeting Mistake?
Are you budgeting backward? Are you asking the wrong questions? Are you making this one mistake when it comes to budgeting? Read on and I will tell you how to fix it!
Asking the Wrong Question
A question I see raised very often on various forums and social media sites (which I spend way too much time on) is some form of the following explains why so many people are budgeting backward: “I’m trying to create a budget and… How much should I spend on… food or eating out or clothing?
It doesn’t matter what is normal; it doesn’t matter what other people spend. It also really doesn’t matter if you ARE spending too much on food or clothes or entertainment. What matters is whether you can afford what you are spending.
As long as you are spending less than you make and as long as you can afford what you are spending, then it doesn’t matter if you spend way too much on groceries. This is a common mistake people make when creating a budget. They focus on how much they SHOULD be spending and not how much they ARE ABLE to spend
A "Normal" Budget
A “normal” budget is a budget that works for you and the numbers you have. It doesn’t matter if you are spending significantly less than everyone else on entertainment- if it’s more than you can spend, then you aren’t working with a balanced budget.
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