Numbers!I like to think about budgeting as goal-setting, not limit-setting. A budget helps us align our day-to-day actions with our long-term hopes and dreams. It's about living purposefully, not carelessly. A budget is a plan, which can be adjusted as we go along, that helps move us toward the life we really want.
Before we start budgeting it's essential to figure out where our money is going, and what our priorities are. I suggest about three months of tracking spending (step one) to get a good idea of what a year of spending might look like. In the meantime, it's important to think about, talk about, and write down what we really want in life: defining our dreams (step two).
For some reason, what we do and what we really want usually don't line up. Maybe we're spending hundreds of dollars on eating out, yet we're feeling stressed because we have no savings to pay for emergency houseRead More »from Creating a Budget in 3 Easy Steps | Step Three: Live with Purpose