Reverse Budgeting: A strategy to spend more, without guilt

You’re walking around the local mall and notice Lululemon just released a new seasonal color of your favorite shirt. You immediately start justifying why you need it - the other colors you have are getting worn out, you will be excited to continue hitting the gym with a new fit, etc. You take a peek at the price tag and realize inflation is impacting gym shirts (that were already selling at a premium) too. Regardless, you’re “financially stable” and therefore decide to make the purchase. At the same time, there is a slight sense of guilt or buyer’s remorse - did I really need another $100 gym shirt? Compounding this feeling is the fact it’s not the first purchase you made at the mall today or even this week - in other words, this happens often. You’re making a lot of money and spending a decent amount too. In reality, this emotion is stemming from a lack of clarity on total spending and no solid plan for the future. A solution to alleviate this unfulfilled state is called Reverse Budgeting.