Step 5: Adjust your habits if necessary. Once you've done all this, you have what you need to complete your budget. Having documented your income and spending, you can start to see where you have money left over or where you can cut back so that you have money to put toward your goals. Want_to_have expenses are the first area to look for spending cuts. Can you skip movie night in favor of a movie at home? Try adjusting the numbers you’ve tracked to see how much money that frees up. If you’ve already adjusted your spending on wants, evaluate your spending on needs. You may need internet at home, but do you need the fastest available?
If you can't forgo a payment such as a minimum payment on a credit card, it can be considered a "need," according to the Warren and Tyagi. Why? Because your credit score will be negatively impacted if you don't pay the minimum. By the same token, if the minimum payment required is ษ and you regularly pay 贄 a month to keep a manageable balance, that additional ๛ isn't a need.