Poll: How do you budget?

[Planner]

While working, DW and I always lived below our means. We would do a planning budget from time to time to better understand where all the money was going, and used it as a tool to make decisions. Living frugally meant we didn't have to stick to a strict spending budget.


We always made sure our desired level of savings/investments were covered along with all the normal bills in life. With funds for emergencies and planned high dollar buys set aside, we then felt comfortable essentially "running the checking account to zero" each month. That was our way of "budgeting". Credit cards were paid off each month and we never financed any adult toys. We saved and paid cash for those.

 

[steelyman]

I’m a long-time Quicken user who never used its budgeting tools before retirement. Now I do and like them a lot. They take a little getting used to, but worth it.

I use them in a sort of hybrid way. For non-discretionary items, they are strict. The discretionary side is way looser.

Combined with Quicken’s bill/income planner features, it’s helpful for tracking overall cash flow. Getting categories defined for your situation is important.

 

[NanaW]

My budget is pay my bills then spend the rest, can’t take it with me ������

 

[Lagniappe]

My budget is one number - total spending for the year.


I plan and track at a more granular level, so that if I have unexpected spending in one area, I know where/how to cut back to make up for it so that I hit the total spending number.



This year, for instance, I have spent 4x what I expected on home maintenance. No cause for alarm, my travel spend was tracking well under plan due to judicious use of miles and points, and I wasn't spending nearly as much as expected on entertainment, dining out or health out of pocket.



For me, tracking spending keeps me from overreacting and becoming a tightwad unnecessarily. It can also keep me from overspending unknowingly.