Creating a budget can depend on what works best for you based on your financial goals, spending habits, and personal preferences. Commas advisor Nate approaches budgeting by prioritizing saving first and paying essentials like rent, groceries, and loans. He then gets to spend whatever is left guilt-free!
“The way I think about budgeting is: I take a very reverse budgeting approach. So I look at: what do I need to save first? What money is already going out the door in terms of maybe rent or mortgage payments, groceries. Do I need to save in my Roth IRA? Do I need to save to pay down student loans or anything like that? And then, anything that’s leftover after that I can freely spend money on. I think that makes budgeting a lot more fun and simple rather than saying: this is how much comes in each month and then here’s how much I cans pend on clothing or fun money. Whatever’s leftover I can spend wherever I want guilt-free and it doesn’t matter.”
