The traditional way of saving money is through budgeting. Every month, you list down your expenses and make a budget for it. Its like how you budget for a company's event if you've ever organised one before. Your company gives you $1000 and you can only spend within this amount. So you start by listing down $100 for food, $200 for gifts, $200 for event venue etc. It works well for company events but however, it doesn't seem to work well for our personal lives. Why does it not work?



Let's say you get a $3000 salary every month. You tell yourself that you need to save 10% (which is $300) and spend the rest. So effectively, you have $2700 to spend. But somehow, at the end of the month, you realise that the $3000 is gone. What happened to the $300 which you wanted to save? It happens all ......