Is Your Budgeting Method Failing You?

Certified Financial Coach Amy Scott believes most budgeting advice is wrong because it is reactive. According to her, traditional budgeting sets you up to fail by focusing on where your money already went while not helping you feel in control of where your money is going next.

She offers three simple steps for creating a system that makes room for your real life – and gives you the confidence and tools to build for the future you want:

Step 1: Sort Your Spending Into 3 Categories

We’re ditching the 30+ line items and overwhelming budgets. Instead, we organize your expenses into three clear, manageable buckets:

1. Fixed & Recurring

These are your predictable monthly costs—mortgage or rent, utilities, subscriptions, insurance. The stuff that stays the same(ish) each month.

2. Day-to-Day Spending

This is the flexible, everyday stuff—groceries, gas, eating out, Target runs, the “life happens” stuff.

3. Non-Recurring Expenses (aka “Wammys”)

These are the things that don’t come up every month—but when they do, they hurt. Think holiday gifts, car repairs, travel, back-to-school shopping. These are the silent budget killers if you’re not planning for them.

Step 2: Open Separate Accounts for Each Category

This is where things really start to click.

Instead of lumping all your spending into one account and hoping for the best, I help clients set up separate checking and savings accounts for each category:

• Your main checkinghandles all fixed and recurring bills.
• A second checkingbecomes your day-to-day spending account.
• Multiple savings accountsare labeled and organized for Wammys (car repair fund, holiday fund, travel, etc.).

This is budgeting without budgeting. You can check your balance before you spend and know instantly: Do I have money for this? Is this what I planned to use this money for?

Spoiler alert: That kind of clarity changes everything.

Step 3: Automate the System

Each payday, you transfer the right amounts into each account—based on the plan you made ahead of time. No guessing. No guilt. Just a clear, repeatable rhythm that starts giving you confidence with money again.

It’s like setting up a money GPS. You’re not wondering if you’re “doing it right”—you know you are. Because you made the plan, and now your money is following it.

Why Forward-Looking Budgeting Works

This method works because it’s not based on perfection—it’s based on real life.

It accounts for the way money actually flows in and out of your life. It lets you prepare for the curveballs. It puts structure in place without micromanaging your every move.

And maybe most importantly—it puts you back in the driver’s seat.

Instead of asking “Where did all my money go?” you’re asking, “Where do I want it to go?”

That’s a completely different energy. And when you approach your money with that kind of clarity and intention, everything shifts.

Read the full article here.

There are as many ways to budget as there are people working to manage their finances. The best approach is the one you will be able to stick to, and that will bring you results. The easier it is to follow, the better. Try this three step system today, and start taking control of your financial future!