Part 5/7:
By analyzing their spending patterns, they categorize expenditures accordingly, finding their own monthly spending breakdown:
45% on needs
30% on wants
25% on goals
Although the author occasionally overspends in the goals category, they are committed to adjusting this in the next month to align more closely with their budgeting goals.
The Importance of Regular Financial Review
Regular review of bank statements and personal financial records is vital. The author takes the time each month to assess and reconcile spending against their earnings.
By analyzing expenses into defined categories and regularly recalibrating them, the author can adjust their budgets in response to changing circumstances, such as a pay increase or a desire to save more aggressively.