How To Backwards Budget

Never Retire Checklist: #10

Source: Author

I see my writing on Medium and in my newsletter like a journey we’re taking with one another.

You’re on your path. I’m on my mine.

The details of my present situation and where I want to be going forward and for the duration help weave a narrative and bring the thoughts and ideas we discuss to life.

My newsletter is a core part of my Never Retire plan. I plan on doing it forever. If all goes well, it will be my primary source of cash flow into and beyond relative old age.

Yes, the cash flow matters. However, just as important, writing my newsletter helps keep me focused on my own situation. It helps me make sense of it and evolve — and sometimes change — my thinking. It keeps me engaged, invested and inspired.

Here’s how traditional, one-size-fits-all budgeting looks —

• It’s pie chart budgeting. Commit no more than 30% of your income to housing, 15% to transportation, 10% to debt, 10% to savings, 5% to healthcare premiums and 30% to everyday living expenses and discretionary spending. Or something like that.
• Pay yourself first. Before you take care of anything else, divert cash to the savings category. And do it automatically every month. So you won’t even know the money’s gone.