Regardless of whether you’re excited, terrified, or lost somewhere in between, there’s something we can all agree on here. It’s that budgeting exists for one simple reason—because it works.
The silver lining is that it’s often the start of knowing exactly how powerful and useful a budget can be. It’s eye-opening in ways you wish it weren’t at times!
By minus your total expenses (calculated above in step 2) from your total income (calculated above in step 2), you’ll arrive at a number that’s either in green or red, so to speak.