Part 3/9:
Rule 1: Give Every Dollar a Job
This rule emphasizes that each dollar earned should serve a specific purpose. It's essential to allocate funds to immediate needs like rent, utilities, groceries, and debt repayment while allowing for discretionary spending and savings. The key lies in knowing precisely where your money is going—tracking spending helps unveil financial realities that might otherwise remain hidden.
Your budgeting categories should reflect personal needs. For instance, dining out may be a high priority for someone working alone, while social outings might not be crucial to someone else with a robust workplace culture.