Can anyone explain the hate for budgeting? How do you track things in order to "save more" "spend less"?
is it just all about an overall lifestyle? Like calorie counter vs "clean" eaters?
We have a budget of sorts but really just pay more attention to tracking our spending.
When we were really focused on getting out of debt and our income was lower we did use the envelope system to good effect. It helped to see the money building up in our household envelope each month for those larger intermittent purchases like a new appliance. Or knowing there was $100 in the clothing envelope meant my wife didn't feel guilty about buying a couple of pieces of clothing because we had already allocated money for it.
I think budgeting can be really helpful for many people, but most people on MMM are advanced mustachians and for most of us frugality is a second nature. And most of us have more than enough money to pay for our basic needs.
But learning to budget is a valuable skill for young people to learn. That exercise in school where you have to create a budget for a fictional family, for a lot of kids that's the first time they realize that income is limited and that if John and Mary want to spend €1200 on a summer holiday, they need to set away €100 every month, and that if they get takeout twice a month then they can't save up for a holiday.
That's not what the average mustachian's budget looks (and personally I don't budget either except for setting certain net-worth goals for EOY) but for the average person that's a big eye-opener. When I was a young adult and had just moved out of the house I budgeted religiously, because I simply only had about €1000/month to spend. And yes, sometimes it happened that I had €20 left over from my €100 food budget at the end of the month, and I would treat myself to some fancy foods. I don't see the issue with that unless you're in debt. Sometimes I wouldn't treat myself but add that money to the "trips" pot but I really don't see why it would be wrong to get a tub of Ben & Jerry's to celebrate instead.
Theoretically, in my non budgeting world, “treating yourself” happens not because there is money left over but because it is important to treat yourself. But this “treating yourself” comes after much practice in determining if it really is a treat that has been greatly enjoyed or only a little bit enjoyed. Or, instead of the entire Ben and Jerry container, half of it equals the same level of enjoyment as the full container.
Your example articulates what is wrong in my mind with budgeting and leftover funds.
I'm sorry, but I really still don't understand. Yes, if you are wealthy, like I am today, "treating yourself" i.e. buying certain things that are not necessary for survival but do make life nicer, doesn't happen because there's money leftover in the budget but because it's an important thing to do. But that's a choice you can only make if you have plenty of money.
If you are on a very limited budget, as I was, then under normal circumstances, there's simply not enough room in the budget to pay for anything not necessary for survival. Treats are something you have to save up for. When you have a bit of luck, like the supermarket giving away free bread right before closing time, you can save up a bit of money to spend on "treats" at the end of the month when you're sure you're not having any bad luck that month (like a lightbulb breaking) I still don't see what's wrong with saving up to pay for luxuries like a tub of icecream. Is it somehow morally wrong to enjoy luxury food every now and then? I don't think so. I didn't have debts to payoff either, and I already saved a small amount every month on the day I was paid. Of course, the whole tub of icecream doesn't have to be eaten in one go (I would only eat small portions to make sure I could enjoy it for many days) but one problem for poor people, is that food comes in containers that are not necessarily ideal in size. Icecream comes in large expensive tubs, which is why you need to save up to buy them, but small single servings cost almost the same as big tubs, so those are certainly not efficient to buy.
Of course, it's not mandatory to buy a treat. I'm sure there were months that I didn't spend my whole budget. And I didn't just buy unhealthy treats, I also love fruit so I'd often buy a whole pineapple or a few mangos. Another thing I would do with my 'saved up' money is buy bags of flour and sugar and baking soda, so I could make cheap pizza and bread and muffins. Homemade is a lot cheaper, tastier and healthier than storebought, but you need to invest in supplies first. Or I'd buy the large containers of spices at the grocery store that offer much more value for money than a small container but would cost a significant amount of my grocery budget for that week.
At that point I did budget per week (€100/month, €20/week so that's partially where the extra's came from) because I would go to the farmer's market and the grocery store every Saturday and that's what I could spend. Of course, now I have more than enough money, I don't have to think about money that way anymore. I simply buy what I need, in the quality that I prefer, from the local shops that I value. But that's an option that's only available to those not on a limited budget. The one thing I love most about having a higher income is not having to spend all of your mental energy calculating how much money there's left this month.
