GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
Allbudgetingstrategies have their positives and negatives.
Zero-based budgeting can sometimes be too rigid and might not sufficiently account for consumers that have varying incomes.
Life isnt always a straight line, as much as we may want it to be.
Below are some key signs thisbudgeting method may be working against you.
He noted that the most successful budgeters focus on big-picture money moves rather than penny-perfect tracking.
Youre Depleting Your Mental Energy
Mental bandwidth is a finite resource, Shahnazari explained.
Spending it all ondetailed expense trackingleaves no energy for wealth-building activities.
Those risks should be calculated, but but avoiding them entirely could keep you from building wealth.
Instead, he explained that budgeting should be approached as a tool for understanding your financial habits.
Instead of cutting everything at once, he said to focus on understanding where your money goes.
More From GOBankingRates
Share This Article:
