Many of us set monthly budgets in order to keep track of our spending, as well as to curb bad spending habits. But in some cases, you may not even need to use a budget.
I know that since I’m a personal finance creator on the interwebs, some people might come at me for this as it is a very unpopular opinion, but I stand by it:
I don’t ~really~ have a budget!
Yes, you read that right!
Just hear me out on this one:
My Expenses Are Super Low
For those of you who are new to the blog or my Instagram, here’s a couple of quick things to know about me, and why my expenses are as low as they are:
- I’m in my early 20s and live at home with my parents
- I’m under a parent’s health insurance
- I don’t pay for my own car insurance
With that being said, basically all I pay for are monthly subscriptions, gas, food, personal necessities, and clothing.
I am very grateful to be in this situation, and I never take it for granted. (Because obviously one day I’m going to have much higher expenses!)
I Track My Spending
Even though I don’t follow a strict budget, I still track my spending each month.
My favorite way to do that is through a fun and free tool called Personal Capital. (Seriously, you should sign up for it – it will make your life so much easier if you hate spreadsheets!)
By tracking my spending, I know exactly where each one of my dollars is going, and I’ll know where I need to cut back if I overspent in one area.
I Make It A Priority To Save & Invest More Than I Spend
Investing and saving my money always comes before spending. Period.
And by sticking to this habit, I don’t need to rely on a budget to keep me accountable.
Simple as that!
I’m A Self-Proclaimed Minimalist
This sort of goes along with the last point, but basically I try to live a minimalistic life.
I don’t need a closet full of fancy clothes or a hot new car. Those things don’t make me happy.
And, for the record, minimalist isn’t just about having less stuff. It’s also about being intentional with what you bring into your life.
(But mostly because I hate having extra things to organize and clean!)
Being intentional with how I spend my money helps me save more money, and I can use that extra money to buy some more index funds, which will help me grow my money even further!
Final Takeaways
Before you go, I just want to wrap up this post by saying that having a budget is indeed important, especially for those of us who tend to have bad spending habits or have some debt.
When you have a house with a mortgage, bills to pay, groceries/household necessities to buy, then yes, you should definitely consider budgeting.
But, if you have some traits like me and are lucky to be in a situation like mine, then you may not necessarily need a budget.
Of course, it never hurts to track your spending and be intentional when you spend your hard-earned dollars!
Also, for the record – I’m not a financial advisor, so none of this is advice, just some opinions of mine!