It’s Not About The Income, It’s About Your Expenses

It is 2021, and the crazy 2020 is starting to look more and more like a bad dream for so many. As many of us are still getting back to our normal lives, our financial situation may still need help. To get your money back under control, it still comes back to having a budget.

The Income Fallacy

Having a strong financial foundation can be tough to create. This is especially true when you are starting from scratch. One of the worst things I have heard over the years in working with people build budgets is a common income fallacy. I was once told the key was to make more money than you spend. That was the most ridiculous advice I had ever heard! If you follow that logic you will forever be in debt and have no money.

The Expenses

Understanding where your money is going is one of the first tasks in managing your budget. However, so often when we are trying to manage our money, we overlook certain items. Another issue is thinking everything is fine, but we are slowly adding more expenses without accounting for them in the budget. I would suggest to review your actual spending every few weeks to ensure your actual spend reflects your budget and vice versa.

Understanding how to properly manage your money doesn’t have to be that tough if you don’t make it.