White Coat Investor Podcast WCI #258: How to Set Up a Budget, and Why It Can Be So Valuable
Apr 14, 2022
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Budget Equals A Money Plan
- A budget is simply a plan for what your money needs to do and aligns spending with values.
- Jim Dolley and Dr. Thisha Spath stress any budget is better than none and it helps achieve financial goals.
Allocate For Needs, Wants, Savings
- Use a budget to pay for needs, most wants, and meet savings and investing goals.
- Give yourself guilt-free personal allowances so spending doesn't cause fights or regret.
Match Budget Type To Your Stage
- Choose a budgeting method that fits your situation: zero-based, proportional, envelope, or pay-yourself-first.
- Start strict when finances are tight and relax to proportional or automatic approaches as stability grows.