Now, youre going to see these four categories a lot throughout our personal finance articles and that is because all your expenses are contained in these categories. Its time to sit down and categorize your spending into four buckets. When there is simply too much month for your paycheck, theres a good chance youre not aware of what your lifestyle actually costs. You know your money matters are out of whack when it feels like youre starring in Macklemores Thrift Shop music video. This is going to be the foundation of your Conscious Spending Plan. We’re going to help you redirect it to the places you choose, like investing, saving, and even spending more on the things you love (but less on the things you dont). Instead, were going to gently create a new, simple way of spending. Who wants to track their spending? The few people who actually try it find that their budgets completely fail after two days because tracking every penny is overwhelming. The main issue with it is simple: Human willpower. This is unconscious spending (aka spreadsheet budgeting). How often do you feel guilty about buying something but then do it anyway? How many times have you opened your bills, winced, then shrugged and said, I guess I spent that much? That might have worked for them … but it sure doesnt work now. When people think budgeting, images of their parents studiously going over receipts, writing down expenses in a notebook, and screaming, HOW DID WE SPEND SO MUCH ON GAS LAST WEEK? come to mind. Thats why were going to break it down to the basics today on how you can build a budget. If that sounds familiar to you, thats okay! We want to be there to help. Some common themes are fear, laziness, confusion, and even anger. The answers he got back were fascinating: (B) Dont know how much theyre spending each month.Even after 10+ years of spreading the Rich Life gospel, our founder Ramit Sethi still runs into people who need budget help.
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