Why You’re Thinking About Your Budget All Wrong
Maggie McGrath of Forbes decided to tackle the subject many of us dislike intensely. BUDGETING. Activities that include budgeting & financial planning are almost painful.
She writes, “Does the thought of tracking your spending every month or living according to a budget sound so torturous that you just… don’t do it? If so, you’re not alone: more than 60% of Americans don’t keep a budget. But while you may not be alone, but you are likely thinking about budgeting in the wrong way.” Maggie sat down with financial expert and author Patrice Washington to talk about why it is that so many people don’t like to budget.
“When I would tell someone to track their spending, they would lie!” Washington told me, recalling some of the clients she’s worked with over the years. “When you’re tracking your spending, you don’t want to look bad. So you stop doing whatever it is you do on Friday nights and you want to look your best.” But, if these are the numbers that you’re going to base your budget on, your budget will be based on a lie.
To see more of Washington’s tips on building a budget — plus how to find things to cut from your spending list even if it feels like there’s nothing you can possibly cut — check out the video and the rest of the article Why You’re Thinking About Your Budget All Wrong in its original format. .
And, if you want to learn more about budgeting, including the popular 50-30-20 rule (it recommends spending 50% of your take home pay on needs, 30% to wants and 20% to savings), check out this article here or this one, here.
Why You’re Thinking About Your Budget All Wrong in its original format.
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