Doing things backwards doesn’t often yield desirable results, but there are times when working backwards to solve a problem can be helpful.
The reason that most people fail at budgeting is that they don’t have the dedication, passion, and discipline it takes to keep to a budgeting routine month after month.
The goal is to figure out the big picture first and then to distill that down into a short term picture in order to fill up a monthly budget.
The first step in making a backwards budget is to figure out what your big goals are in this life.
Now that you have an idea of the goals you’d like to achieve and by what age, this is where the backwards budget starts to work.
You should repeat the process from step 1 and 2 as many times as is necessary for your big goals.
Once you have gone through Step 1 and Step 2 for all of your important financial goals, you have to add all of this together to figure out your monthly backwards budget.