Budgeting and expenses. This is the topic people want more information about than anything else. I asked ChatGPT this question:
When people ask you — the ChatGPT “AI” — what are the most common questions they ask regarding finances?
This was the answer: budgeting and expense tracking. Questions like, “Can you help me build a monthly budget based on my income and expenses?” or “How can I cut spending so I can save more money?” appear more frequently than anything else.
This had me thinking back to our first couple of years of marriage, many years ago. We had a goal — a dream.
We wanted to travel to Europe. It was going to be the first time for both of us. But we made very, very little money.
In fact, the joke was — and it really wasn’t a joke — that if we had had a child at that point in time, our income was so low we would have qualified for government cheese, free cheese. That was a program they had back then. Our incomes were embarrassingly low.
So, this is what we did: we bought a budget book. But instead of making a budget, we did something that I like to call reverse budgeting.
Instead of budgeting for the future, we spent an entire month writing down everything we spent — every last dime. At the end of the month, we tracked exactly how much money came in, and to the penny, where every dollar went. We didn’t use cash; we made sure everything was written in the form of a check.
Today, you could do the same thing with a debit card. The point is to make a note of every single red cent.
After a month, we realized there were certain things we could easily cut out. We were spending way too much eating out. And it wasn’t extravagant — it was quick meals, fast food, convenience foods, buying clothes, whatever.
We decided that for the next year, we wouldn’t do certain things.
For one year, we would not go out to eat. We eliminated it from our budget.
For one year, we would not buy any new clothes. We eliminated that, too.
In fact, even when it came to buying a candy bar at the checkout, my wife would look at me and say, “Really? Do you want the Snickers bar now, or would you rather buy a Cadbury bar in London, England, a year from now?” I would contort my face, but finally say, “A Cadbury bar in London, England.” And I’d put the Snickers back.
It’s possible to do this — but it’s hard. Really, really hard. But some of the best things that happened during that year were the wonderful friendships we nurtured.
Instead of going out, we said to people — who had no idea we were saving — “Hey, let’s get together for a potluck. We’re doing some barbecuing. Why don’t you bring a salad? Why don’t you bring a dessert?” And we had these great get-togethers with friends. During the poorest times of our lives, we had the most fruitful, bountiful friendships.
We weren’t going out to movies or restaurants. Instead, we were building wonderful friendships in our very modest, bottom-story duplex — our first rental after college.
So, when people ask questions like, “Help me build a monthly budget based on my income and expenses,” the very first thing I would have you do here in 2026 is simply go to an office supply store — or order one from an online retailer like Amazon — and buy a budget book.
But instead of making a budget, spend one whole month writing down exactly what you spend each day in all categories.
At the end of that month, you should be able to say, “This is the exact amount we spent in all these categories.” Groceries. Eating out. Cell phones. Streaming services. Every category.
The amount going out should equal the amount of net money coming in. If there’s a variance — say you brought in $300, $400, $500 more than you can account for — that means dollars are slipping through your fingers. You didn’t keep track of them.
Then try again the next month until your tracking is dollar for dollar. Only when you truly understand where your money went can you make corrections.
And when you see your reverse budgeting method laid out — naked — you will know which areas of your life need to change.
Once you have that under control, then it’s time for you to schedule your Financialoscopy®.
