Have you ever felt like your whole life is built around making enough money to support a lifestyle you don’t even remember choosing?
Welcome to the backwards budget! A revolutionary way to flip the money conversation on its head and actually make it possible to work less and live more.
What is a backwards budget?
Traditional budgeting starts with “How much do I earn?” and then carves out spending from there. The backwards budget flips this entirely: it starts with “What kind of life do I want?” and then asks “How much money do I actually need to live that life?”
As Shayla explains: “You don’t think about it as I have to earn X amount of dollars per year because that’s what a professional in this space should earn. You get to say, well, actually, I need $80,000 to have my needs and my wants paid for every single year. And therefore, how am I going to earn $80,000?”
The wake-up call
Shayla discovered this approach during her own career crisis – burnt out with chronic pain and unable to work full-time anymore. “I realised that I needed way less than I thought” she reflects. This revelation opened up possibilities she never knew existed.
But you don’t have to wait for a crisis. This approach is perfect for anyone thinking about career changes, wanting to work part-time, or simply gaining more control over their financial life.
How it works: The spreadsheet of freedom
The backwards budget breaks your expenses into two categories:
Essentials: Everything you need to get out of bed and live – housing, food, health costs, transport, insurance. This is your absolute minimum earning target.
Wants: The things that make life rich – travel, nice shoes, coffee with friends, hobbies. You get to decide what goes here, but remember: “Every cent that you’re adding on in that wants category is going to mean that you’ve got to work some more.”
The life energy test
Here’s a powerful exercise: Calculate your real hourly wage after deducting work-related expenses. If you earn $50 net per hour, that $100 purchase represents two hours of your life energy. As Shayla puts it: “Do I want to work two hours for this or can I do without it and just have some time off?”
Real results
People using this approach have made dramatic life changes – moving from expensive cities to more affordable areas, transitioning to part-time work, or taking career breaks. The key insight? “Until you’ve gone through the exercise of figuring out where your money actually goes, you’re not making conscious choices around it.”
Your permission slip to work less and live more
The backwards budget isn’t about living like a monk – it’s about being intentional. Want coffee dates with friends? Budget for it. Love travel? Factor it in. But do it consciously, knowing exactly what each choice costs in terms of time and freedom. The ultimate question Shayla poses: “What would you do if you won $70 million in lotto tonight?” Your immediate gut response reveals what you really want – and the backwards budget can show you how to get there without needing a lottery win first.
