THE QUICK & DIRTY

Reverse budgeting helps high-earners combat lifestyle creep by prioritizing savings first. Automate at least 20% of your income towards your goals, then enjoy the rest guilt-free. This simple switch empowers you to build wealth and achieve financial freedom.

KEY TAKEAWAYS

• Reverse budgeting flips traditional budgeting on its head. Instead of saving what's leftover, it prioritizes saving first and then spending what remains.

• It's a powerful tool for combating lifestyle creep, helping you build wealth even as your income grows.

• Reverse budgeting involves setting clear financial goals, automating savings, and spending mindfully.

• For high earners looking for a stronger sense of control over your money, this method works better than traditional budgeting.

Alright, high earners, let's cut the crap about traditional budgets. You're pulling in a six-figure salary, but somehow it feels like your bank account is playing a game of hide-and-seek every month. Sound familiar?

That, my friend, is the sneaky work of lifestyle creep.

But fear not, there's a rebellious budgeting method that actually works. It’s called Reverse Budgeting. It's like flipping the bird to the traditional "I’ll save whatever’s left at the end of the month" nonsense. By the end of the month, your checking account is usually as empty as a politician’s promise.

What is this "Reverse Budgeting" magic?

Picture this: Payday arrives, and the first thing you do? You pay yourself. No, not in a "treat yo'self" kind of way. We're talking about stashing a chunk of that cash away for your future self before you even think about spending it. It's like setting up a financial fortress against the temptations of lifestyle inflation.

Reverse Budgeting is better than standard budgeting

You're killing it in your career, but let's be honest, adulting is expensive. There's rent in that trendy neighborhood, student loans whispering in your ear, maybe even a car payment that screams "success." Reverse Budgeting helps you break free from the paycheck-to-paycheck cycle and actually build wealth, even with all those shiny distractions.

The benefits of a Reverse Budget 

• You’re in charge: Instead of leaving it to chance, the Reverse Budget helps you take control of your finances, instead of letting them control you.

• No more budget guilt: Say goodbye to the shame spiral of overspending. You've already saved, so spend the rest without stress.

• Reach your goals faster: Consistent saving means you'll hit those financial milestones sooner than you think.

Three steps to set up your Reverse Budget

1. Dream Big, But Get Specific: What do you want your money to do for you? A down payment on a killer condo? Early retirement on a beach somewhere? Write down your goals, both big and small.

2. Pay Yourself First, No Excuses: Decide on a percentage of your paycheck to save (aim for at least 20%) and automate those transfers. As soon as that direct deposit hits, boom - savings secured.

3. Spend What's Left, Guilt-Free: This is the fun part. The remaining money is yours to enjoy. No more agonizing over every latte or takeout order. You've already paid your dues to the future you.
   

Reverse Budgeting takes discipline

Reverse Budgeting isn't a magic pill. You still need to be mindful of your spending and avoid those sneaky lifestyle creep traps. But trust us, it's way better than living paycheck to paycheck or watching your dreams collect dust.

Remember, even with a Reverse Budget, it's okay to start small. If saving 20% feels like a stretch, begin with 10% and gradually increase it as you become more comfortable. Life is unpredictable, so be flexible and adjust your budget as your goals and income evolve. And if you ever feel overwhelmed or need some extra guidance, don't hesitate to reach out to a financial advisor who understands your ambition and hustle.

Bottomline, flip the script on your finances

Traditional budgeting is outdated and boring–not to mention, for most of us, it’s designed to fail. Embrace the Reverse Budget and you’ll start seeing real progress in no time. It's time to take control, build wealth, and live the life you deserve. You've got this!

Whether you’re saving up for Tahiti or a Tesla, we help you achieve your short-term and long-term financial goals.

Ready to make your money work harder for you?

Written by Priya Malani
Founder & CEO

Priya is an industry thought leader and personal finance expert for HENRYs [High Earners, Not Rich Yet]. Her relatable, no-bullshit style has garnered attention from the largest media outlets in the country including Forbes, The Wall Street Journal, Business Insider, NerdWallet, and more.