If You Hate Budgeting, Here Are 6 Ways To Get Around It
If you’ve tried every budgeting hack out there and still can’t find one that works for you — don’t fret, there are a few ways to get around it.
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“I enjoy budgeting, but I understand it’s not everyone’s cup of tea,” said True Tamplin, founder of Finance Strategists. “So, it’s important to explore other strategies for managing finances that don’t involve traditional budgeting methods.”
His top suggestion? Prioritize.
“Instead of meticulously tracking every penny, identify your non-negotiables — rent, utilities, groceries — and prioritize them like your lifeline,” he said. “Everything else? A ruthless edit is in order. Slash subscriptions you barely use and purge unnecessary expenses. Every trimmed cost buys you back a sliver of breathing room.”
Here are more ways to stay on top of your finances without the need to budget.
Track Your Spending
“Budgeting might get a bad rap, but embracing financial awareness doesn’t require spreadsheets and charts,” said Tamplin. “Track your spending in a way that works for you — a simple notebook, a color-coded calendar or even mental tallies. Just knowing where your money flows equips you to make informed choices.”
Other experts agree.
“If the thought of budgeting makes you cringe, consider expense-tracking instead,” said Jake Hill, finance expert and CEO of DebtHammer Relief. He noted that although many people use tracking their expenses as a way to make sure they stay within their budget, you can still reap many of this practice’s benefits without a budget.
For example, he said having a concrete idea of how much you spend every month can subconsciously inspire you to keep your spending in check, especially for nonessentials.
“This can help you spend less overall, leaving you with more available funds to meet your financial goals,” he said.
Next: 10 Expenses Most Likely To Drain Your Checking Account Each Month
When In Doubt, Automate
One key skill for managing your finances, according to experts, is to automate your savings and bill payments.
Tamplin said having a portion of your paycheck automatically directed to savings, investments or fixed expenses reduces the need for regular bookkeeping and ensures that important payments are never missed.
“After handling essential expenses, you can spend what’s left as you like,” he said.
Carter Seuthe, CEO of Credit Summit, agreed. “It’s hard for me to not recommend budgeting,” he explained. “It’s such an essential aspect of financial health that people really should be trying to do. But, I understand that traditional budgeting just doesn’t work well for some people.”
Instead, he suggests figuring out how much your necessary costs are each month — i.e. rent, utilities, car payment, student loan repayment, etc. — and write that down. Then, determine a specific savings goal that you want to strive for each month.
“Set up automation to automatically withdraw those two categories — or you could even divide the first category into each individual bill — from your paycheck each month, and place them in separate accounts,” he said.
Seuthe said that by using automation, you don’t have to think about how much to take out and when, or whether or not there will be enough, so you don’t have to think about budgeting as much.
“Then, with that money automatically moved, you can do what you choose with whatever month is leftover,” he said.
Stay on Track With Savings Goals
Just because you’re not budgeting doesn’t mean you shouldn’t prioritize other money goals, according to Vida Jatulis, certified financial planner at MainStreet Financial Planning. She said this approach is focused on saving, not spending.
“If you have a full emergency fund, are auto saving enough for your mid-term goals and putting the appropriate amount in your retirement accounts directly from your paycheck, then you don’t need to budget, because you know that you are on track to meet all your short-term, mid-term and long-term goals, so spend the rest!” she said.
Embrace a Frugal Lifestyle
“I prefer not to engage in budgeting, personally,” said Harrison Tang, co-founder and CEO of Spokeo. “Instead, I’ve embraced a frugal lifestyle, incorporating certain thrifty habits into my daily routine.”
“For example, one of my habits is to go to the public library,” he noted. “As a CEO, I recognize the value of always extending my knowledge in order to make wise decisions and gain wisdom. While buying books on a daily basis can be expensive, I find the public library to be a low-cost solution that allows me to access a wide range of information without having to spend money.”
In addition to this, he said he avoids purchasing paper towels. “Instead, I keep a reusable cloth in order to wipe up any mess on my kitchen counters. This not only aligns with a cost-conscious mindset but also contributes to a more sustainable and eco-friendly lifestyle.”
Try Zero-Based Budgeting
If traditional methods are too complicated, Tim Connon, CEO and life insurance agent at ParamountQuote Life Insurance Advisors, recommended trying an alternative to standard budgeting, such as zero-based budgeting.
“You basically assign your money to a specific spending purpose,” he explained.
He said this allows people to understand every single expense they have and assess its importance.
“My personal favorite is cash envelopes, because each envelope has specific amounts of cash for different spending purposes per month. Since it is done with cash, it limits the potential to overspend and helps serve as a visual to change spending habits,” he said.
Patrick Clark, certified financial planner for Life Solutions Group, also suggested this cash system.
“My wife and I used this system before we had children,” he said. “We would each get a certain amount of cash we could spend every month. Once it was gone, it was gone, and it still kept us on track for our other goals.”
Have Different Accounts for Various Purposes
According to Tamplin, you should have one bank account for essential expenses and another for discretionary spending. He said this effectively prevents overspending in one area from impacting your ability to cover essential costs.
Clark also believes having multiple bank accounts works especially well with automatic savings.
“You can have a certain amount of your paycheck go into different accounts,” he explained. “For example: account one for bills, account two for vacation, account three for savings, account four as fun money. This allows most people to have their essentials taken care of but not feel deprived of spending money.”
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This article originally appeared on GOBankingRates.com: If You Hate Budgeting, Here Are 6 Ways To Get Around It
