Can you live without a budget? This writer Shugar suggests that you can and should live without a budget. I have to say he makes some persuasive arguments.
Personally I’d love to live without a budget at all. But I don’t quite think we’re there yet. He lives a very simply life and anything he wants is easily affordable to him. Likely because he lived WITH a budget for years, and carefully managed his money. For years he saved 15% and carefully planned all of his spending. And while doing so he began prioritize what was important to him and his family.
He says that figuring out what is really important to your family is true financial freedom. Then you won’t struggle to try and pay all your monthly obligations. I have to say I agree 100%. He says he carefully planned and participated in delayed gratification for things he wanted or “thought” he really wanted. When it wasn’t the case he didn’t buy it.
Instead he has found happiness in life. In just living and appreciating life. I can definitely see how it’s cheaper. And I can understand how after years of responsible money management he’s now free from budgeting. He’s in a position of knowing he can afford anything because he was so cautious.
Perhaps part of the freedom comes from having practiced the budgeting mentality for so long that it’s now part of his nature. That he is now naturally thriftier than people who lived large for a long time and ran up lots of debt. Likely their lifestyles was never one he participated in, so living without a budget is a lot easier than for someone who is used to spending money on everything.
But could you do it? Could you live without a budget? I hope to one day get there, and I feel well on my way because of our automatic savings and bill paying. We are still very conscious of our spending but we do have more freedom than we had say 5 years ago. And so each step brings us one step closer to freedom, and living without a budget.
5 responses so far ↓
1 Kristy // Oct 28, 2008 at 9:33 am
We don’t have a set budget, however, we know approximately what we spend on what every month. About once a year we sit down and see if there are any areas where we can save more money, but that’s it. That being said, DH and I don’t really spend alot of money. We save quite a bit in retirement accounts and in taxable accounts and I don’t feel it is necessary to have a set budget.
Next year when the new baby comes, after I am done with maternity leave, etc. we will take a look at our expenses and our income and adjust accordingly. We know that we will be able to maximize our retirement accounts, but that we won’t be able to save as much in other accounts.
The good thing is that DH is always on board with this and neither of us are spenders.
2 Amber C // Oct 28, 2008 at 11:58 am
Interesting article. I can see myself in 5-10 years once the bills are paid and the mortgage paid off living without a budget.
3 savvy // Oct 28, 2008 at 1:04 pm
I don’t have a budget although I do track what I spend. I have pretty much automated our finances (tithes, retirement, bills, other savings) so whatever is left is free to be spent as we choose.
4 Penelope @ Pecuniarities // Oct 28, 2008 at 4:58 pm
We don’t live with a budget, either. We just try to spend only when necessary and as little as possible when we do. I like to say that we have a budget of $0 and try not to go over it too much.
My philosophy is that human nature is to push barriers and test limits. When something/someone tells you that you can’t do something, your natural tendency is to want to do it.
So when you make it a choice not to spend rather than a rule that you can’t spend, you don’t feel as if you’re being oppressed and might find yourself spending less than you otherwise would if you were on a budget.
I wrote a post about why we do this earlier this year if you don’t mind my sharing:
http://pecuniarities.com/the-no-budget-system/140
5 LivingAlmostLarge // Oct 29, 2008 at 11:14 am
Sounds great that so many people live without a budget. I’m still on a budgeting philosophy. I have set goals and wants. I am thinking that one day it will be nice to live without a budget and be roling in the dough.
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