Pro Tip:
When you allocate your income to various accounts as soon as the money comes in, these is no question whether or not a new expense “fits” within your budget.
I used to budget- and I was really good at it.
I created budgets for myself, my friends, my clients, and multi-million dollar agencies with over 100 programs. I even created a spreadsheet that helps you create your own budget (it is still available in the Money Mom Academy toolbox).
Let me tell you, people HATE budgets.
Where my business budgets would be within 0.01% of actual figures at the end of the year, people had difficulty sticking to a budget for more than a week.
Who can blame them?
No one likes to be restricted.
And it is really easy to justify moving the money from one column to another when you really want something in the now.
Then I discovered the Income Allocation method, which takes all the boring prep work out of budgeting.
As I like to say, whether you acknowledge it or not, you have a budget.
It is where all your money comes and goes, especially the recurring expenses and revenue.
With the Income Allocation method (also available in the Money Mom Academy), you set up separate accounts or envelopes for each spending category. As soon as a dollar enters your life it gets allocated to each of these accounts. That way every dollar is accounted for and you always know if you have the money available to purchase something from that category.
Can you still move money around? Yes. BUT, with the Income Allocation method- easily being able to see how you are doing, how your savings are accumulating, and how much you have available- you will find yourself not wanting to deviate from your selected path. It uses psychology to help you succeed.
I have explained this method ad nauseum, so I will not do it again here, but I would be more than happy to answer any questions you might have via DM or in the comments below.
Is this methodology the key that helps you unlock financial success? Maybe. If not, there are other options available in the Money Mom Academy toolbox. You may like one of them better or decide on a hybrid of two or more options.
Because my mission is to empower you through education. Are you ready to uplevel your life?