Steve Adcock, 36, and his wife Courtney, 32, doubled down on their savings in order to quit their jobs and travel full-time. And while the early retirees are huge advocates of budgeting — they meticulously track their expenses — they admit that sometimes it doesn't work.
In fact, before Adcock got serious about retiring early, "I did budgeting wrong," he tells CNBC Make It. You could be doing it wrong too.
The basic idea of budgeting is that you divide your income into certain spending categories, and then you can spend based on how much money is available in each of those categories.
What most of us are not taught is that just because the money in each category can be spent doesn't necessarily mean it should be spent.