Budgeting is 80% emotional and 20% numerical.
In other words, 80% of your success with budgeting is based on your emotions, while only 20% is based on your numbers.
Learning how to deal with fear, jealousy, and regret are the main components of budgeting you need to master.
Sure, an app can crunch your numbers. But it can’t master your financial emotions for you.
That’s your project.
Once you nail the 80% — the financial emotions — you’ll look and treat money differently.
And when your perspective shifts, something magical happens — you’ll become smarter with money and finally start to feel in control of your finances.
Another great post Avraham. I would add one more emotion that you have to control to budget properly and stick to it – desire!
Continued success Avraham.
Yes, that’s a great addition — desire! Thanks Ira.
Great article, Avraham! My main financial emotion right now is desire. Desire to buy anything I want. Lol so I guess that comes down to self control. So hard.
Terumi, thanks for your honest comment. I appreciate it. What do you think is fueling your desire?