Financial: Spending Goals
Spending goals are usually called budgets. Budgets are set to constrain spending and balance spending against expected earnings to avoid a negative cash flow. While earning goals and spending goals are separate, a cash flow value reflects the link between earning and spending. If you have negative cash flow and zero savings, then you have to borrow money to continue spending. Budgets help individuals and companies avoid the need to borrow money from creditors.
Starting Steps for Spending Goals
(1) I need to decide what expenses are essential to living modestly while I pursue my important goals.
(2) What spending choices are considered essential to my life? Which others are important? Which others are beneficial, but not really important? Which others are more wasteful than beneficial?
(3) What is my current earning rate? Is my earning rate always greater than my spending rate; sometimes greater, sometimes less; or usually less than my spending?
(4) What should my daily spending budget be for food, travel, social events, housing, and education?