Mental Budgeting

Mental budgeting is the process of consciously allocating your available financial resources to different spending categories in your mind. It helps you manage your money by setting informal limits for essentials, savings, or discretionary expenses before actually spending. This mental practice encourages mindful decision-making, reduces impulse buys, and ensures you prioritize important financial goals. Essentially, it’s about mentally dividing your income into specific “buckets,” so you can stay on track and avoid overspending in any area, leading to better financial control and overall stability.