Planning your spending is key. Having a balanced spending plan should be a financial priority regardless of where you are in life or what your net worth. Call it a budget. Call it something else. Just be deliberate in how you spend your money.
Use your balance sheet and income statement as basis to create the budget. Your financial statements will naturally be a logical starting point for developing your path forward.
Adjust your budget incrementally to maximize cash flow. Small changes over time are more likely to stick than large adjustments administered rapidly.
Include line items for saving and investing like any other expense. It should be the top priority, even before food and housing. Pay yourself first! I have no doubt you’ll find a way to eat, even after saving a portion of your salary.
Do you have a budget? If not, why not? Let me hear from you. I’m curious how following a budget has worked for you.
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