How to Create a Budget That Actually Works
Written by Graham Teller Why Most Budgets Fail (And Why Yours Doesn’t Have To) Creating a budget sounds simple enough—just list your income and expenses, right? Yet for most people, budgeting either doesn’t stick or doesn’t work. The truth is, traditional budgeting methods often fail because they don’t align with your real life. In this guide, you’ll learn how to create a budget that not only works but one you can actually stick to long term. This is the exact method used by financially successful individuals to track, plan, and control their money—not be controlled by it . Step 1: Know Your Net Income (Not Just Your Salary) Your net income is your income after taxes and deductions . It’s the actual amount you have available to budget. Don’t base your budget on your salary—base it on your take-home pay. Include all income sources: Full-time job (net pay) Side hustle or freelance gigs Passive income (rental income, dividends, etc.) Government assistance or ch...
