"Do not save what is left after spending; instead spend what is left after saving."
WARREN BUFFETT
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Pay Yourself First
Prioritise your savings, not saving what is left after spending.
When budgeting, consider what is necessary to cover your basic needs, then figure out how much you want to save. The leftover is spending money. If it helps, think of your savings and investments as a monthl...
The cash flow formula
The word "budget" is often synonymous with restricted and rigid, making you want to avoid it. Instead, use the term "cash flow."
The formula for cash flow is:
(Monthly income) - (Monthly expenses + saving) = (Money left to spend.)
Saving Money May Be Worthless
The mere act of saving money by itself does not make one rich, or wealthy. Saving is not the magic sauce of retiring early and enjoying life to the fullest.
Wealth comes from investing. It is a direct effect of what we do with the money we save. Saving may well...
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