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comment by rinx
rinx  ·  3299 days ago  ·  link  ·    ·  parent  ·  post: Hubski, how do you budget ?

I don't think budgets work long term. They are like diets, great for short term examinations of habits, but not usually sustainable.

For me I "budget" what I need to save then I live off the rest however I want. Takes very little effort and I don't see money I can't spend. I added up my monthly bills, divided by two, and rounded up a bit. That goes into my bill pay account which has enough money now (thanks to the rounded up a bit) to cover 3 - 6 months expenses. My retirement and other long term savings (wedding, house, vacations, kids) are deducted from my paycheck or direct deposited into my brokerage. Whatever is left goes into my primary checking for me to spend how I see fit. I pay for just about everything with credit card and I pay off the card in full each month from primary checking.

Once or twice a year (usually December and tax season) I check in on my finances. I re-balance my retirement portfolio, recalculate my monthly bills and see if I can erase any or haggle them down, and move long term savings into short term for things like vacations or major expenses. Twice a year is all I really need to deal with money, and this is a plan I've kept up with for the last 5 years or so ago. Whatever style you pick, try to make sure it's something that works for you long term. Skimping and saving for a couple months wont make much difference if you quit after, it's sustainable change that makes a difference.