When my clients first build a budget, I notice they often make one key mistake: They forget to include savings or debt payoff goals.
They budget for monthly expenses, like rent and groceries, but never savings or debt. They assume they’ll use any leftover money towards saving goals, but often forget to move this money at the end of the month. Instead, they dip into it here and there for fun purchases, leaving their debt and savings stagnant each month.
That’s why I’m a strong advocate for the zero-based budgeting method, which requires you to assign a home for every dollar you earn. I like that it teaches you that spending isn’t bad. So I put my own spin on zero-based budgeting and created the “spend-all…
