Comments on: Financial Confession – I Don’t Budget

By: Free Money Finance March Money Madness, Round 2, Posts 21-24 - Cradle of Hope Adoption Center Pages

Wed, 10 Mar 2010 22:48:21 +0000

[...] Financial Confession – I Don’t Budget (Confession) – Budgeting is for weenies! Not really, but every family has a different budgeting style. Some people prefer a formal budget while for others, like us, a more “organic” approach works best. [...]

By: Joe

Joe — Sun, 14 Feb 2010 23:07:58 +0000

Yeah, me too. I dont budget. Dont spend too much too.

Guess I am fortunate. Income greater than expenses.

I did find a nice simple way. At work, I found I could direct deposit my salary into more than one institution. So I arranged for a large fixed amount to go to online saving bank, balance to checking. I use my checking account for current bills. So if it ever comes that I need more money than is in my checking to pay bills, I need to tranfer from another bank, which makes me stop and think.

By: Rachel

Rachel — Thu, 11 Feb 2010 15:02:10 +0000

Whoops–did I forget to mention savings and commuting costs—we never even see those–the first is 20% of our pay–because they are deducted before we get our paychecks!

By: Rachel

Rachel — Thu, 11 Feb 2010 14:34:28 +0000

My husband and I are of the “organic” variety of budgeters. We know exactly what is coming in and the big-ticket spending categories are easily quantifiable–insurances, mortgage, vacation and weekend trip costs, meals out, entertainment, groceries, utilities, clothing and gifts to kids and charity. Periodically I do a check on what we’ve been spending on these and it seems to tally up just fine. Putting everything on the Amex or Visa card, which we pay off in full every month, helps very much, as I look on the statement to see what’s beens spent. It’s me who has a flair for these things–definitely not my husband–so I would stress it is important to have the correct person in the family keeping an eye on it, which usually happens naturally.

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By: KittyBoarder

KittyBoarder — Wed, 10 Feb 2010 21:08:18 +0000

I am pretty addicted to the Mint.com budget tool. but I don’t use it for the sake of budget, but knowing exactly where our money went.
The monthly, quarterly, even yearly pie charts are so helpful so we know exactly the percentage we spent on each category such as restaurants, coffee, cars, etc…
I tried once to skinny down our spending by making a real tight budget, but that didn’t work. When we have to send out a $100 check for our close friends last minute wedding, we do it even if our budget didn’t allow it…

By: Crystal

Crystal — Wed, 10 Feb 2010 16:33:27 +0000

We budget to keep an eye on our food expenses and make sure we are hitting all of our financial goals. Our spending is pretty stable, so we probably could get away with no budget…but it’s become a habit for me. We also get to pat ourselves on the back when we cut major expenses for a month…it’s addicting.

By: Cindy

Cindy — Mon, 08 Jun 2009 11:27:27 +0000

One of the best ways I can do better with my spending is a very simple approach. I have to stay out of the stores. I used to spend hours in Walmart just looking around and end up spending way more money than I should. Now, I AVOID the stores and it has made a major difference. Sorta like the tips on catalogs, etc., if you don’t see it, you won’t be tempted to buy it!

By: ctreit

ctreit — Sun, 10 May 2009 17:28:50 +0000

I think budgets are important but a budget’s biggest benefit comes from establishing spending habits. So, I agree with you that you don’t need to follow a budget for the rest of your life. Once good spending habits are established and you spend less than you make, it is okay to live without a budget. I go in and out of following a budget depending on whether things change in my financial life or if my headline numbers don’t look so good anymore.

By: Ben

Ben — Sat, 09 May 2009 19:36:05 +0000

Alyson, using I don’t see anything wrong with using credit cards, as long as you pay off the balance each month. That’s what we do. Of course if you can’t pay for what you buy on the card then it’s not a good idea to use them.

Alan, I wouldn’t say your method is dangerous. If you’re reviewing it in the middle and at the end of each month then even if you over spend you’ll catch it pretty quickly. Just make sure you’re putting aside some of your money for savings so you don’t spend it all.

Michael, congrats on your upcoming retirement! I agree, if you can spend less than you make and put away money for savings without making a budget you should be fine. Of course for people who have a problem managing their spending, a budget can help them stay on track.