Originally, I penned my budget like everyone else, backwards. Except I did not know it was backwards. I looked at what I was spending each month and then reused those numbers month after month to predict my future spending. That is, until I realized how hideously inefficient that was.
Just because something has been done a certain way for as long as you can remember does not mean it cannot be done better, smarter and faster. Now that we have that weirdness out of the way, I found three reasons my backward budget was, well, backwards.
- I have variable expenses, just like everyone else. Accounting for and tracking these expenses took up far too much of my time.
- I have unexpected bills pop up from time to time, just like everyone else. Again, tracking and accounting was becoming like a second job.
- A backward budget did not conform to my financial health; my financial health conformed to my budget.
All of these things meant I was managing my money and my time inefficiently. Therefore, instead of spending hours working on my budget, I spent a few hours conjuring up an epiphany.