Reader,
I want to be share more about what I mean when I talk about budgeting, because I know that word carries a lot of baggage.
For a lot of people, budgeting means trying to predict the future:
“I’ll earn this much, so I’ll spend this much.”
Considered this way, it's not uncommon to wonder, “how can I budget if don’t know how much I'm going to make each month?”
This is a very common question, especially if you're a soloist and run your own business. Most budgeting advice assumes your income is predictable.
The old model is: project, forecast, guess.
But that’s not how I'm inviting you to look at it.
The way I think about budgeting is simple:
Look at the money you have right now and decide what you want it to do.
That’s it. What’s sitting in your account today? What does that money need to cover before more money comes in?
No guessing.
No counting on a paycheck that’s not here yet.
No mentally spending future money.
When you start spending money you think is coming, that’s where things get messy, and that’s how so many of us end up using tomorrow’s paycheck to cover last week’s spending.
The approach to budgeting I teach breaks that cycle.
It shifts your thinking from “I have $1,000 sitting in my account” to “I have $200 for groceries, $75 for gas, $100 toward the electric bill,” and so on.
Now - tracking (keeping an eye on past spending) and forecasting (planning for future income and expenses) definitely have their place.
It’s useful to know your spending patterns and to have a general sense of what might be coming in the future. That helps you make better decisions with the money you have today.
But that’s not all budgeting is.
At its core, budgeting is deciding what your current dollars need to do, and following through.
This is where things start to feel easier. You’re not guessing. You’re not hoping there’s “probably” enough in your account.
You know what every dollar is for.
It’s like finally having a list instead of trying to keep it all in your head.
That’s budgeting. That’s the whole thing.
And it’s what helps you start using today’s money for future spending, not past.
Does this match how you’ve thought about budgeting before? Or is this way different than what you’ve been taught?
Hit reply and let me know!
Allegra
Reach out when you're ready.