Conventional wisdom for financial planning typically starts with budgeting. But I think budgeting is a painful, unnecessary process that inhibits doing much of anything. What is actually fundamental to financial success is setting priorities and discipline.
- Save first directly from your pay, never get the money in your hands.
- Never pay a penny in credit card interest
- Spend whatever you like with what’s left from your true take home pay. That includes all your basic expenses and payments. Your “budget” is set for you.
“START BUDGETING. Creating and sticking to a budget is fundamental to your financial success. Although budgeting isn’t necessarily fun, it is a critical piece of the puzzle. Within your budget, you can prioritize things that matter and ruthlessly cut out things that don’t.”
“Keep in mind that there’s nothing wrong with occasionally splurging on the things you like. Just make sure you’re saving for these purchases in advance. If you want to take a particular trip with friends, buy a nice bag or pair of shoes, start putting aside the money for it. Luckily, there are many strategies to help you find budgeting success.”