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They see budgeting as the starting point in your wealth-building journey.
So, their suggestion is to live by a prioritized spending plan.
If you make more, thats great!
Start getting to the less-vital categories.
If you make less, its education for the future.
As Cruze said, it will take some time and effort to set up your budget.
It must be nice, right?
Of course, they also hear the opposite take: I dont make enough to budget.
Either way, they say its vital that you budget.
Kamel added that lifestyle creep is more of a threat without a budget.
And to it, they say, be adults.
First, a budget should have a healthy miscellaneous category.
In fact, Cruze noted that, Your number one thing is to have a $1,000emergency fund.
This is for anything from car repairs to doctor copays.
If its more than that, youll need to adjust the budget to accommodate them.
For instance, you could reduce the amount for dining or clothes until youre back on track.
The point is, budgeting allows you to weather surprise storms better.
But, this is also a key reason to make a budget.
Budgets identify overspending and unhealthy spending, and give you the power to correct it.
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