Firevalt Blog has a new definition of budgeting.
What does the word “budget” mean? I think for most people it means pre-determining how much money can be spent on each expense category per month… Another way to budget – the way I prefer – is to compare all your monthly expenses (out-goes) to your monthly income (in-goes) with the goal of being cash flow positive each month. This type of budgeting seems to be more effective because it eliminates the tedium of budgeting for each specific category.
It’s a short post, but it might help the budget-impaired.
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Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband have a small cattle ranch and are lifelong entrepreneurs. Becky is an international speaker on small business and rural topics.