Objective: Prioritize where you want your money to flow.
I’ve tried a million different budget templates. They don’t work because they don’t help me plan ahead. Rather than tracking every dollar, I’ve try to focus on the big picture of what’s important and where I want my money to flow.
The key is to decide in advance how you will allocate your money according to your goals.
You tell your money what to do. Not the other way around.
(If you already have a good handle on this, skip ahead to Autopilot.)
First, prioritize your savings into three buckets: Soon, Now, & Later
Examples:
Now- pay off credit card, attack student loans
Soon- new car fund, vacations
Later- down payment, retirement
If you got a bonus $2500 paycheck this month, how would you allocate it?
(Assume this is after all your bills are paid.)