Friday Financial Tidbit-Reverse Budgeting

Credit: Lifehacker

If you have been a reader of this blog or a listener to the podcast for very long you know that I am really big on doing a monthly budget. With that being said, doing a monthly budget can become quite tedious after a while. To those people I ask, have you ever tried reverse budgeting? Reverse budgeting is inspired by my friend Josh Gordon of the Nonconformistfamily.com. To help you with reverse budgeting I have created a worksheet to get you started.

Reverse budgeting is simply figuring out what you want to do with money during the month first. Then figure out how much money you will need to earn to accomplish those goals, instead of taking what you make each month and determining what you will do with it.

I have found reverse budgeting to be helpful in getting me motivated to earn extra income. By listing all of my financial goals for the month, I think in terms of how much I need to earn instead of what I can afford. By reverse budgeting you are challenging yourself to make unlimited income as long as you do the work, whereas with traditional money you are keeping your income static and fitting your wants and needs into that number. It also makes you think outside the box and gets you into thinking about creative ways to create extra income.

So if you are tired of doing the same old budget each month and need a new take on it, try reverse budgeting. It will definitely get you to think more creatively and who knows it might help you make some more income in the process.

What’s your experience been with reverse budgeting?

To receive notifications of new posts, please join our email list or visit our subscription page

JW’s Financial Coaching is a for-profit Financial Coaching business.  To learn more about us please visit one of the following links:

About Services Offered Mission Statement Contact Information FAQ

Advertisements

About Jon White

Giving people hope and seeing them win with their finances is something I have a strong passion for. Because of this passion I started JW’s Financial Coaching in the summer of 2010. Financial coaching has allowed me to combine my passions of finances, teaching, and helping others by helping people get on the right track financially. I'm interested in hearing your story so please do not hesitate to interact with me through social media.
This entry was posted in Budgeting, Debt, Friday Financial Tidbit, Guests, Personal Story, Spreadsheets and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s