I consider myself pretty Mustachian, but I don't have any sort of budget. I use my credit cards for almost everything and have them set up to auto pay the full bill every month. I do use mint to analyze my spending sometimes, and I have a spreadsheet of my monthly bills so I know roughly how much I'm spending and saving. But for the most part I just put stuff on the credit card when I need to, and then keep enough in checking so that the credit cards get magically paid off every month. I'm just wondering if this is unusual or not for this community.
Yes, but mainly as a coordination and communication tool with my spouse. I wouldn't need one or bother with it on my own, but it's useful to bring clarity to our financial situation and bridge the gap between our differing money management styles.
Kind of? I put "No, but we track spending with Mint". We set a budget for two categories - groceries ($230/month) and travel (<$8000/year), because it would be pretty easy to talk ourselves into spending more without it, and there's no point spending more since those are generous enough.
We set a vague annual budget for various categories, more for forecasting than anything, based on the previous year's spending and our estimates for things like new phone contracts or changes in rent.
Otherwise our system is "Spend whatever you want, invest the rest, but keep track of every penny for later analysis". And we definitely do the analysis step - every New Years Day we do a full annual financial report with full details of all income and spending for the year.
I've never really understood people who are anti-budget. I've always used a budget as both a retrospective and prospective tool. It's a way to make goals for myself. I constantly check it and use it to reevaluate my spending. Hmm, over-indulged on fancy groceries this month? That means it's beans and rice for the rest of the month! I find it to be the best way of maximizing my savings and keeping me conscious of where money is going. Otherwise, I find it too easy to overspend -- not on frivolous purchases, mind you, but on reasonable purchases that should really just be spread out.Exactly. It is always good to know what you have done recently and what is in the future. Two weeks ago I treated myself brand named ice cream I love? Looks like no high quality cheese this month. I put stuff on lock down recently? Yeah, I can go out tonight to whatever expensive thing a friend has in mind.
But of course, we're graduate students and trying to juggle student loans, retirement, saving for a house, etc. etc. I imagine it's a little easier once you and your (good) habits are more established.
I've never really understood people who are anti-budget. I've always used a budget as both a retrospective and prospective tool. It's a way to make goals for myself. I constantly check it and use it to reevaluate my spending. Hmm, over-indulged on fancy groceries this month? That means it's beans and rice for the rest of the month! I find it to be the best way of maximizing my savings and keeping me conscious of where money is going. Otherwise, I find it too easy to overspend -- not on frivolous purchases, mind you, but on reasonable purchases that should really just be spread out.
But of course, we're graduate students and trying to juggle student loans, retirement, saving for a house, etc. etc. I imagine it's a little easier once you and your (good) habits are more established.
I've never really understood people who are anti-budget. I've always used a budget as both a retrospective and prospective tool. It's a way to make goals for myself. I constantly check it and use it to reevaluate my spending. Hmm, over-indulged on fancy groceries this month? That means it's beans and rice for the rest of the month! I find it to be the best way of maximizing my savings and keeping me conscious of where money is going. Otherwise, I find it too easy to overspend -- not on frivolous purchases, mind you, but on reasonable purchases that should really just be spread out.
But of course, we're graduate students and trying to juggle student loans, retirement, saving for a house, etc. etc. I imagine it's a little easier once you and your (good) habits are more established.
I've never really understood people who are anti-budget. I've always used a budget as both a retrospective and prospective tool. It's a way to make goals for myself. I constantly check it and use it to reevaluate my spending. Hmm, over-indulged on fancy groceries this month? That means it's beans and rice for the rest of the month! I find it to be the best way of maximizing my savings and keeping me conscious of where money is going. Otherwise, I find it too easy to overspend -- not on frivolous purchases, mind you, but on reasonable purchases that should really just be spread out.
But of course, we're graduate students and trying to juggle student loans, retirement, saving for a house, etc. etc. I imagine it's a little easier once you and your (good) habits are more established.
I also don't understand the anti-budget sentiment in here either. It is kind of like saying "I don't need to (use a map/navigation device/GPS/ask how to get anywhere) because (I never go anywhere/I know how to get to where I am going/there are never any unforeseen roadblocks)." MMM is all about optimization. Having a budget helps you optimize the use of your money. So yeah, you can still get to where you want to go because you already know how to get there, but maybe there is a more optimal way.
As far as the poll question/answer choices go, none of them really apply. I chose "Yes, I use it to set goals to keep my spending lower than it would otherwise be." It is the answer closest to "Yes, I use it to help me optimize the use of my money." My budget isn't what keeps my spending low; it help me make the most efficient use of my money.
Also, my budget is NOT restrictive/depriving/constrictive/stress-inducing/hard and fast/micromanaged/painful/tedious in the extreme/anal/constraining/"a hassle which prevents me from stocking up on a few pairs of socks." So many people that are anti-budget around here act like using one means you stop thinking. It is quite the opposite; you think MORE with a budget because you are constantly trying to optimize. Any of the things that have been said about budgeting here: would you say the same thing about optimizing being "restrictive/depriving/constrictive/stress-inducing/hard and fast/micromanaged/painful/tedious in the extreme/anal/constraining/"a hassle which prevents me from stocking up on a few pairs of socks"?I have just the right amount of socks.
I've never really understood people who are anti-budget. I've always used a budget as both a retrospective and prospective tool. It's a way to make goals for myself. I constantly check it and use it to reevaluate my spending. Hmm, over-indulged on fancy groceries this month? That means it's beans and rice for the rest of the month! I find it to be the best way of maximizing my savings and keeping me conscious of where money is going. Otherwise, I find it too easy to overspend -- not on frivolous purchases, mind you, but on reasonable purchases that should really just be spread out.
But of course, we're graduate students and trying to juggle student loans, retirement, saving for a house, etc. etc. I imagine it's a little easier once you and your (good) habits are more established.
I also don't understand the anti-budget sentiment in here either. It is kind of like saying "I don't need to (use a map/navigation device/GPS/ask how to get anywhere) because (I never go anywhere/I know how to get to where I am going/there are never any unforeseen roadblocks)." MMM is all about optimization. Having a budget helps you optimize the use of your money. So yeah, you can still get to where you want to go because you already know how to get there, but maybe there is a more optimal way.
As far as the poll question/answer choices go, none of them really apply. I chose "Yes, I use it to set goals to keep my spending lower than it would otherwise be." It is the answer closest to "Yes, I use it to help me optimize the use of my money." My budget isn't what keeps my spending low; it help me make the most efficient use of my money.
Also, my budget is NOT restrictive/depriving/constrictive/stress-inducing/hard and fast/micromanaged/painful/tedious in the extreme/anal/constraining/"a hassle which prevents me from stocking up on a few pairs of socks." So many people that are anti-budget around here act like using one means you stop thinking. It is quite the opposite; you think MORE with a budget because you are constantly trying to optimize. Any of the things that have been said about budgeting here: would you say the same thing about optimizing being "restrictive/depriving/constrictive/stress-inducing/hard and fast/micromanaged/painful/tedious in the extreme/anal/constraining/"a hassle which prevents me from stocking up on a few pairs of socks"?I have just the right amount of socks.
That's why I was only referring to really restrictive Dave Ramsey-style budgets - I think it's very possible to use budgets in a more sane way, but I think the very restrictive type of budgeting accounts for a fair bit of the anti-budget sentiment.
On a personal level, budgeting would be completely useless to us - we buy what we need, sell or toss of what we don't, and spend a very minimal amount overall. Given that we track everything, I don't see what benefit having a budget on top of that would provide.
I think, as someone said above, that part of the issue when talking about "do you have a budget" is that it means different things to different people. And as for restrictive budgets, well, if you're in debt or don't have a lot of money, it's kind of necessary. I could be as frugal as anything but if all I have to spend is x amount per month and everything I need costs x + y then without figuring out in advance where the money is going to go you end up in debt. Or it could be, like me, you're just out of debt and there are lots of things you've put off while in debt that would be kind of nice to get now but if you did it all in one month, you'd end up in debt again. So, it's essential to have a budget. In addition, for me anyway, it's essential to have a list of stuff I need or want. That way, when I get to next month's budget, I can check the list and see what's on there, whether or not I still need or want it and figure out what I can add it to the budget. Examples for this month include new orthotics and a bike pump, by the way, just in case anyone's interested. :)
I also don't understand the anti-budget sentiment in here either. It is kind of like saying "I don't need to (use a map/navigation device/GPS/ask how to get anywhere) because (I never go anywhere/I know how to get to where I am going/there are never any unforeseen roadblocks)." MMM is all about optimization. Having a budget helps you optimize the use of your money. So yeah, you can still get to where you want to go because you already know how to get there, but maybe there is a more optimal way.
I also don't understand the anti-budget sentiment in here either. It is kind of like saying "I don't need to (use a map/navigation device/GPS/ask how to get anywhere) because (I never go anywhere/I know how to get to where I am going/there are never any unforeseen roadblocks)." MMM is all about optimization. Having a budget helps you optimize the use of your money. So yeah, you can still get to where you want to go because you already know how to get there, but maybe there is a more optimal way.
Ah, but isn't optimization also about optimizing time? Hey, I'm all for optimization, but taking the necessary time to track all of my grocery purchases, when I already have my grocery purchases dialed in, is a sub-optimal use of my spare time.
I think for some folks like myself it's not that we are against budgets, they are simply a tool that don't benefit us. I already know where my strengths and weaknesses are, and once the frugality muscles are in place budgets are not necessary.
Yes, but mainly as a coordination and communication tool with my spouse. I wouldn't need one or bother with it on my own, but it's useful to bring clarity to our financial situation and bridge the gap between our differing money management styles.