We all know that budgeting is the key to managing our money. But have you ever considered how an annual budget might work better than a monthly budget? Tell me if this is how budgeting usually goes for you … You take your annual income, divide it by 12, and then make a goal to not spend over that amount each month. Things might go well for a little while. But then you find that you’ve over-spent by $500 because of a bill you weren’t expecting. Then the next month its $1,000 more than you anticipated. Perhaps you’d like to buy a new car, but you’re unsure of how much you can actually afford each month. Or maybe you’d like to boost your 401(k) savings rate. But again – how much extra can you … [Read more...] about Monthly Budget Not Working? Why An Annual Budget Is Better