(Don't) Create a Budget
The Accounts Method
“Show me the money!” It’s not just a movie slogan; they’re words to live by. Focusing on how much cash you have makes it easier to manage your spending and prioritize your purchases.
To be able to see what you have, you’ll probably need to simplify your financial structure. Set up three different bank accounts for major categories of cash outlays: Fixed expenses (rent, taxes, insurance, child care, etc.), Debt payments (credit card balances, auto loans, student loans, etc.), and Discretionary expenses (cable TV, cell phones, wardrobe refreshers, everything else).