Am I the only one without a "budget"?

[nunzia]

We make a bit under the national average, so if we want to have goals we have to have a budget of some sort. I have a loose standard budget, then when the variable bills come in: utilites mainly, I write it all down as my 2 week budget, including extra savings (401Ks come out before we see the checks). I spend it all down on paper except for our envelope cash (one envelope for each week) and a checkbook cushion. These amounts are very small..some groceries, gas, maybe a dinner out. We bulk buy at Sams a few times a year and do alot of eating out of the pantry and buying stuff on sale to add to the pantry. We live in a small town and gasoline useage is quite low since our commutes are a mile or so. So, bills and such are budgeted, weekly living is controlled by what is in the envelope or checkbook.

 

[RitaE]

after many many years of tighter budgets, I really don't have to "budget" anymore in terms of tracking everything on spreadsheets and watching the pennies closely. A good part of that is increased income and part of it is that I have the budget down to such an exact science that I don't need to pay that close attention anymore.

All of our savings are set up on automatic transfers timed for right after paychecks hitting. Nearly all of our bills are also - including the college tuition bills. I keep an eye on our checking account and as long as it doesn't run down to $0 I know we're doing fine.

 

[crisi]

I don't keep a paper budget, but I know how much my expenses are, how much we make, and plan for large purchases.

 

[mrodgers]

Hey, don't be jealous of DVCGirl ... I have close relatives that make as much or more as us, however, they are always in financial trouble because they literally buy everything they "want." I'm apalled at what I see thrown in their shopping cart on a trip to the store to pick up milk!!!!

They want to take nice trips but - hey, no money in the bank!!! When they do take a trip to visit relatives, they choose to go to sit-down restaurants instead of sandwiches in the cooler, etc.

Just sayin that it's all about choices and priorities. Most people I know that make that kind of money are struggling to keep their heads above water because they spend like they are making $$$.

Choices and priorities ... don't penalize me for having saved my money ... I've chosen to live in a older/smaller house and keep my cars for 10+ years. It works for me.

DVCGirls said what her discretionary money is after putting $125k/year in the bank and after bills are paid. I don't see a reason for a budget. It cost my family of 4 $2000 to go to Disney for 6 nights. That's 2 Disney trips per month (not including gas or flight) she has. Why would one need to budget for things one wants if one has that kind of money?

I started budgeting after a big fight after our Disney trip because we have about $150-200/pay left over. I have to budget and save up to pay my quarterly car insurance and have to save up money every pay for a year to pay my heating bill when winter comes. Even if I didn't include bills that don't occur monthly, if I had $4k+ discretionary money every month, I wouldn't have to budget. That would take care of 2 years worth of car insurance and winter heat with just 1 months worth of extra left from the paycheck.

As long as you are putting money in the bank for future and paying the bills, there really isn't a reason to budget. It is when you don't have the extra income to go out and buy whatever you want is when you have to budget. That is what discretionary money is, money left over.

If I want an iPad and it costs $300, I have $150 left every pay, but $100 gets put aside to pay insurance and heat. I can't just take my $50 and go out and buy an iPad, I have to plan for it and save up that $50. If I have $1000's, I can just go out and buy that iPad, or iPhone, or new bed mattress, or a really good used car every 2 months, or whatever I wanted.

The difference between needing and wanting to budget is pretty much the same as needing and wanting stuff. If you have $4k every month, DVCGirl for example may want to budget because they like to buy a brand new BMW every year. Can't do that any time they want on $4k, but putting $3k/month aside with budgeting, they could buy a new BMW every year. But, no one needs a brand new BMW every year, so it isn't an instance of needing to budget.

 

[DawnM]

We do budget. I am getting better at it (ie: remembering to record everything!). We have 3 kids who will need college funds before we know it and we are living on one income. When DH and I both worked we were far less concerned about a budget.

Dawn

 

[Disneychix]

I don't keep a paper budget, but I know how much my expenses are, how much we make, and plan for large purchases.

 

[Marionnette]

DVCGirls said what her discretionary money is after putting $125k/year in the bank and after bills are paid. I don't see a reason for a budget. It cost my family of 4 $2000 to go to Disney for 6 nights. That's 2 Disney trips per month (not including gas or flight) she has. Why would one need to budget for things one wants if one has that kind of money?

I started budgeting after a big fight after our Disney trip because we have about $150-200/pay left over. I have to budget and save up to pay my quarterly car insurance and have to save up money every pay for a year to pay my heating bill when winter comes. Even if I didn't include bills that don't occur monthly, if I had $4k+ discretionary money every month, I wouldn't have to budget. That would take care of 2 years worth of car insurance and winter heat with just 1 months worth of extra left from the paycheck.

As long as you are putting money in the bank for future and paying the bills, there really isn't a reason to budget. It is when you don't have the extra income to go out and buy whatever you want is when you have to budget. That is what discretionary money is, money left over.

If I want an iPad and it costs $300, I have $150 left every pay, but $100 gets put aside to pay insurance and heat. I can't just take my $50 and go out and buy an iPad, I have to plan for it and save up that $50. If I have $1000's, I can just go out and buy that iPad, or iPhone, or new bed mattress, or a really good used car every 2 months, or whatever I wanted.

The difference between needing and wanting to budget is pretty much the same as needing and wanting stuff. If you have $4k every month, DVCGirl for example may want to budget because they like to buy a brand new BMW every year. Can't do that any time they want on $4k, but putting $3k/month aside with budgeting, they could buy a new BMW every year. But, no one needs a brand new BMW every year, so it isn't an instance of needing to budget.

Certainly you wouldn't have to budget if you had dvcgirl's income but maintained your current lifestyle. I can pretty much guarantee you that this would not happen. Your lifestyle would expand with your income. You don't stop having a budget just because you make more money. In fact, you pay more attention to it because you want to make sure that you don't overspend that bigger income.

We have a budget. It's on paper and everything in spelled out. I don't get agitated if the grocery budget goes by $15 or if gas goes up another 5 cents this week. The budget isn't that tight. But I do know where my money is going and what I have for discretionary spending like lattes and Vera Bradley bags.

 

[NY Disney fan]

Just a friendly word of caution, not to divulge too much about our personal incomes. We don't know who is tracking us on these boards. I believe if someone tried hard enough they can track all our posts and use that against us.

 

[mhsjax]

Hey, don't be jealous of DVCGirl ... I have close relatives that make as much or more as us, however, they are always in financial trouble because they literally buy everything they "want." I'm apalled at what I see thrown in their shopping cart on a trip to the store to pick up milk!!!!

They want to take nice trips but - hey, no money in the bank!!! When they do take a trip to visit relatives, they choose to go to sit-down restaurants instead of sandwiches in the cooler, etc.

Just sayin that it's all about choices and priorities. Most people I know that make that kind of money are struggling to keep their heads above water because they spend like they are making $$$.

Choices and priorities ... don't penalize me for having saved my money ... I've chosen to live in a older/smaller house and keep my cars for 10+ years. It works for me.

And by the same token, just because people spend more than you, don't think that they are in debt.

I do find some of the attitude here very condescending. It is possible to spend and still save, you don't have to always live way beneath your means to be successful. As long as you are saving, spend the rest as you want.

 

[cassandrap83]

Although I don't usually post I have spent a lot of time reading this board because I like finding money saving ideas. I am intrigued by all of the discussions on strict budgets, down to the penny spending tracking, and even people following "methods". Recently a friend mentioned something about her grocery budget, and I said that we don't budget and she seemed truly confused. So, I have been wondering....am I really so unusual in my money habits? I have no budget and I track nothing--I frankly couldn't tell you what I spend on groceries or anything else. I am just naturally thrifty(some might say "cheap") and we spend less than we make. Maybe being "cheap" is the best budget you can have?

This is us too. I have a general "idea" of what I want to spend, but if I go a little over or under, I'm not concerned. I also don't track anything, ever.

 

[ilovemk76]

I guess this is the part I don't understand. "we just buy what we want and not have to really think about it".

I mean, like I said, we do pretty well, I've shared it in other threads and don't care about the number so I'll say it here......we make a bit over 300K a year. This year more like 312K. And like I said, we save 60% of our net income.

Uncle Sam takes his third....we'll save 125K this year. That gives us 85K a year after taxes to live on. We have no debt at all..... Our monthly bills, including groceries (and that's a generous 800 per month for 2 of us) is $2,435 per month. That leaves us a little over $4,500 in discretionary income each month.

That's a *lot* of money.....but I guess if we didn't set our savings goals, we could just spend like crazy...not even think about it, and still end up with about 20%. By just setting some goals and applying a bit of discipline....we save three times that.

I guess I still can't imagine the "spend what we want and not thinking about it" part.....despite being as fortunate as we are to earn as much as we do.

Don't get me wrong, we go on nice trips, buy some nice electronics....those are our splurges, but those purchases are always in that budget. And still we feel completely satisfied. But we have to *think* about our purchases and set goals.....just like everyone else.

What are you saving for? Retirement? You would have that in 15 years at your saving rate and expenses.

Like our financial planner friend says. If you are saving way above your needs than you are not enjoying life enough now. There is a balance to everyging in life, including savings.

We don't make what you do and thus to not save what you do either. Most in the US don't even earn in pre-tax money what you save in after tax money.

Do you think the person who dies with the most money wins?

We don't buy whatever we want but we also help others with our extra money and treat ourselves today too.

 

[SaraJayne]

What are you saving for? Retirement? You would have that in 15 years at your saving rate and expenses.

Like our financial planner friend says. If you are saving way above your needs than you are not enjoying life enough now. There is a balance to everyging in life, including savings.

We don't make what you do and thus to not save what you do either. Most in the US don't even earn in pre-tax money what you save in after tax money.

Do you think the person who dies with the most money wins?

We don't buy whatever we want but we also help others with our extra money and treat ourselves today too.

Exactly. You can't take it with you. Unless they want to be like the actress that just died and left $500 million behind. Maybe that is DVCgirl's goal.

Unfortunately for my DH, his father had to die before he realized life is too short and there must be balance in all aspects of life.

 

[The Pluto People]

Exactly. You can't take it with you. Unless they want to be like the actress that just died and left $500 million behind. Maybe that is DVCgirl's goal.

Unfortunately for my DH, his father had to die before he realized life is too short and there must be balance in all aspects of life.

What do you want her to spend it on? As long as she is happy why spend more? Your typical American attitude - MORE, BIGGER, BETTER,NEWER - is what gets people in so much financial trouble. We should all learn from DVC Girl.

 

[SaraJayne]

What do you want her to spend it on? As long as she is happy why spend more? Your typical American attitude - MORE, BIGGER, BETTER,NEWER - is what gets people in so much financial trouble. We should all learn from DVC Girl.

More, bigger, better, newer is not in my vocabulary. I've never been a "keep up with the Jones' " type of girl.

We're in great financial shape and yet I don't save $125,000 a year.

The vast majority of Americans don't even MAKE $125,000 a year, let alone SAVE it.

 

[ilovemk76]

What do you want her to spend it on? As long as she is happy why spend more? Your typical American attitude - MORE, BIGGER, BETTER,NEWER - is what gets people in so much financial trouble. We should all learn from DVC Girl.

Who says she has to spend more? She and her DH could cut back their work hours and earn less and enjoy that time more. A person feels better at 35 than they do at 75.

 

[clutter]

I don't really have a set budget, however, do keep track of my money.

Both DH and I contribute 20% to 401K. Next is when I get paid I have some money put in a "trip account", some in a "big bill" account (for insurances, property taxes, tuition/books ... big bills), and the rest into the general checking account. My DH's check gets split into his spending money (set amount), "extra money" account, and then I get a set amount to pay bills with.

Slowly, I've been switching my monthly bills to auto pay by credit card. I keep a sticky note in my checkbook with my current credit card balance in order to stay aware of what needs to be paid at the end of the month. I check all my accounts on-line several times each week to ensure that everything is accurate and I know what is happening.

I do something similar. I contribute to 401k, then the balance goes into 2 savings accounts. Each month, I transfer my 'budget' amount into checking for bills and living expenses.

Like you, I use my credit card to pay as much as possible. (Thanks to my kitchen renovation and Disney's bonus points, I've earned 1/2 of next years DVC fees already!) However, I simply keep track of my credit card purchases in my checkbook (in a different column than my checking transactions.) Makes reconciling a pain, but... I ensure that I don't overspend the amount I allow my budget to be each month.

 

[dntd]

I don't have a much of a budget but I try. I mean if my kids need shoes, they get them normally at payless or on sale. Sports in our house consist of softball and ymca, both relatively cheap even if I need to buy new equipment every year it's still cheap. I garden and can food/make jams and pickles. I cross border shop for dairy as I can get what we need for 1/2 the price, also for gas. We shop at costco as I have 5 kids that need school lunches. We try to eat what's in season, fruit in the kids lunches are 1-2 fresh and a fruit cup.We don't make much right now and I'm attending collage in the fall but we make do. Would like a bigger savings account but that's not going to happen but we do have a large home equity if we need to use it.

 

[Planogirl]

What do you want her to spend it on? As long as she is happy why spend more? Your typical American attitude - MORE, BIGGER, BETTER,NEWER - is what gets people in so much financial trouble. We should all learn from DVC Girl.

Except that most people don't make what she does and can't really relate to the money figures she's sharing with everyone. If I was in that situation, I'd certainly live it up a bit while saving too of course.

 

[prncess674]

I don't budget either, but also I am single with a very healthy salary that is more than most families make two times over. I max out 401Ks, set aside another nice chunk to savings and then just spend as I like it. Any money left over in my checking account the day before payday gets transferred to savings.

Even though I don't do a budget per se, about once a quarter I download all my credit card statements and look at where my money is going. I realized once that I had a $100 per month SBUX habit and decided that was wasteful spending and bought myself a travel mug and plenty of premium teas and coffee for everyday drinking. I won't deny myself an SBUX if I really want one, or am out with coworkers, but the mindless everyday stop on the way to work just wasn't wise spending.

Whether your salary is big or small, most tend to spend till it is gone and as others have said, PAY YOURSELF FIRST! If the money is out of my ready little hands then I think twice about spending. The good thing about paying yourself first is if there is an emergency you can always raid your personal piggy bank.

 

[tar heel]

We don't have a budget per se, but we're frugile. I have amounts in mind, but we don't always stick to them. I might even use the term "over budget" when the utility bill is $400!

We spend some, we save some, and we'd never share our income or savings information. I'd like to say it was b/c I was taught it was tacky, but that would not be the truth as I come from an extended family in which people left the price stickers on their new cars, told everyone how much their new TV cost and bragged about their salaries and how much they had in savings. I think their behavior stems from their growing up poor and is so ingrained that they don't even see it as tacky.