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Not into budgeting? You’re not alone. Read on for a solution that may be a better fit for you.
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There are certain financial tasks you may not enjoy. Filing taxes certainly comes to mind. And writing a will is an important financial move to make, but it’s hardly a pleasant experience in most cases.
You may be inclined to lob budgeting into that same “I’m not enjoying this” category. Budgeting can be time-consuming. And let’s face it — it’s kind of boring. It’s not surprising, then, to learn that roughly two-thirds of Americans do not follow a budget, according to a Gallup poll.
Now, before you write off budgeting completely, you should know that many of the budgeting apps that are available today make it much easier. But if you’re anti-budget, worry not. You can still manage your money well and meet your financial goals — if you do one key thing.
An alternative to budgeting you might prefer
If budgeting is just plain something you don’t want to do, then don’t force yourself to do it. There are enough things you have to do in life, like go to work and mow the lawn and battle crowds at the DMV. You don’t need to pile onto that unpleasantness by making yourself sit at your laptop and pore over a spreadsheet that maps out your monthly expenses.
A better and easier bet? Automate your savings. It will essentially have the same effect as budgeting, only without the annoyance.
The way to do this is simple. Decide on a savings goal that will help you meet your near- and long-term objectives. That could mean setting $300 a month aside each month to build up an emergency fund or allocating $500 a month to retirement savings. Then, put the process on autopilot so that money leaves your checking account after each paycheck arrives, before you get a chance to spend your incoming cash.
The whole purpose of setting up and following a budget is to be able to do things like fund your savings or IRA. But if you’re able to do those things through automatic contributions, then why put yourself through the hassle of budgeting?
Those who are pro-budget will warn that if you don’t stick to one, you might end up wasting money or spending more than you think you are. But if you’re meeting your financial goals, is that really such a terrible thing?
Sure, it may be that without a budget, you inevitably end up spending $300 a month on leisure when you expect to spend $200. Or your grocery bill for the month might come to $420 instead of $400. But if you’re sticking to your financial goals, who cares? Go enjoy life without having to sweat the small details.
There really is a better way
It’s easy to see why so many financial planners encourage people to budget. But if you’re not into the idea, know that automating your savings could easily take the place of budgeting without subjecting yourself to the tedium of having to review your expenses month after month.
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