I came across this blog entry
today about " How to Budget When You Hate Budgeting
", that I thought was worth sharing. You can click to the full article on credit.com or yahoo finance (the link above has a bit more "truth" about using budgeting software).
Anyway, the author gets a lot of spending control by having less than everything tracked. He calls it "Budgeting Light
" and has only six spending categories:
- His personal
- Hers personal
The author found that if he tried to manage every transaction, it got to be too much, and he quit doing it at all. You know, trying to get rid of / ignore transfers that are not really spending. And tracking the many regular predictable expenses really doesn't do much to help. So all of that is not part of this budgeting light philosophy. Not that you couldn't do that separately, just to keep the big picture, but the author says this philosophy is used "to become more mindful about our spending".
I don't use YNAB, and neither the author nor I are getting a kickback. I thought it would be a reasonable "community service" for me to mention that if you buy YNAB and put "marotta" in the "use my code" box, you'll get 25% off.