Budget Expenses

← DeveloperFI Tips

You don't need to meticulously track income and expenses (unless you want to). Instead:

  1. Reduce the big three expenses: housing, transportation, food
  2. Automate your investments and increase savings rate with each raise (to avoid lifestyle inflation)
  3. Keep track of your net worth

In More Details

In general, saving a dollar is worth more than spending it and earning another dollar. A saved dollar can be invested pre-tax, it won't go through sales tax, and it will grow overtime when invested. While earning more is important, it's also vital to avoid extravagant spending.

Budgeting has many benefits:

It's also not all-or-nothing. Decide how much effort you want to spend budgeting. You could just setup Mint to get a financial overview. Combining a financial dashboard with reducing your largest recurring expenses (housing, transportation, food) is more than enough to reach financial independence.

Further Reading

Popular budgeting tools include:

← Prev / Home / Next →

Related Tips