Why You Should Ditch Your Budget To Build Wealth
Self-made millionaire David Bach gives four reasons why budgeting doesn't work when it comes to achieving your financial objectives. The wealth manager says to throw your budget in the trash and start a pay-yourself-first automatic savings plan.
If you want to save more money, budgeting might not be the best strategy.
In fact, budgets typically don’t work, co-founder of AE Wealth Management and bestselling author David Bach tells CNBC Make It: “Number one: They’re complicated, so people don’t like to do them. Number two: They take time. Number three: They’re not fun at all. It’s like having a diet, so even when you go on them, often, you fall right off within two to three months.”
“You don’t meet a whole lot of people who have budgeted their way to millions,” he adds.
If you want to save more money and build wealth, you don’t necessarily have to create a detailed budget that allocates money for categories like clothes, coffee and bars. Instead, simply commit to paying yourself first, says Bach. Whenever you earn money set aside a portion for your future self.
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Why You Should Ditch Your Budget To Build Wealth
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