The first step to getting where you want to go (a balanced budget) is figuring out where you are. What is your money being spent on at the moment? It can seem easier to not think about it.
It may be that you are not spending enough on the things you want. Like a short getaway:
Or just the occasional ice cream cone.
If too much moolah is going to just covering your needs, and there’s nothing left for fun, that is not sustainable.
Never spending on anything but needs is like never eating anything with sugar, gluten, salt, fat, carbs, dairy, meat, or cooked food. Could you do it? Maybe you could for a little while. Could you live like that forever? Probably not.
The point is not to withhold all fun until you crack. Plan your fun. This way, you spend guilt free. You’re actually having fun because there is no voice in the back of your mind saying, “Can I really afford this?” There is no sinking feeling in your stomach, wondering what your credit card balance will look like at the end of the month.
So, say you are spending too much on “needs”. What counts as a need? Come back next week to find out.
All Your Worth: The Ultimate Lifetime Money Plan by Elizabeth Warren and Amelia Warren Tyagi.