As your income rises, it’s easy to think “I have enough money for this now!” And then you spend, spend, spend. But as your income increases, so do your economic responsibilities, such as taxes, a mortgage, your credit card debt, retirement savings, etc. That’s when budgeting becomes more important than ever!
No one likes to budget, but there’s such a thing as “existence bias,” which means if something isn’t in front of you, then it doesn’t exist. If you’re not aware of your whole financial picture, if you can’t put your eyes on where your money is, where it’s going, and what you have available, then you end up “winging it” instead of controlling it.
There are plenty of budgeting apps out there to help you manage your money, but for planning purposes, a paper-based approach is better to start. Here are two options: ~Valerie