The Secret to Budgeting: Don’t Budget

budgetingIn tough economic times, we all must manage our money closely to stretch every dollar, which is why we all believe making a household budget is very important.  Unfortunately budgeting is hard, and it takes discipline, so we don’t do it.

Don’t worry, there is another option: don’t budget.  That’s right, don’t budget.

It is possible to manage your money without making a detailed budget.  You can find out more in our article on how to NOT make a budget, but here’s the quick summary: pay your bills as often as you get paid.

If you get paid weekly, divide up your monthly bills into quarters, and pay that amount, automatically, with internet banking, from your bank account on payday.  If your home heating bill is $200 per month, and you get paid weekly, pay $50 per week, every payday.  You never get behind, and your bills are always paid.

Savings work the same way.  Set aside a set amount each payday for savings, and automatically transfer it to your savings account every payday.

There are lots of articles that explain this concept, including Why Budgeting is a Bad Idea, and Budgeting, Another New Year’s Resolution Broken, Did you Resolve to Make a Budget,

Or, for a quick summary, here are two videos:

The Secret to Budgeting #1

The Secret to Budgeting #2

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