The 'no-budget' budget: A simplified way to track money
(NewsNation) — Budgeting is not a one-size-fits-all thing. One method may work for one person while another method works better for you.
Most budgeting methods require tracking expenses like a hawk, keeping up with each dollar spent. That might not work for those who get overwhelmed by numbers.
If budgets haven't worked for you in the past, consider the "no-budget" budget.
What is the 'no-budget' budget?
Also called the anti-budget, it is an intuitive saving method. You take your net monthly income and your required expenses into account while keeping spending low.
Instead of tracking each dollar with strict budgeting, you intentionally slow your spending for things other than "must-pays," such as rent, gas, and food. After paying essential bills, you can spend the rest as you wish.
"Outside of that, everything left is essentially disposable income. You don't need to worry about tracking where that money goes—just as long as you've already taken care of your non-negotiables," according to Experian, a major credit reporting bureau.
The disposable income left after deducting necessary expenses from monthly pay is yours to spend however you like, although the idea is to reduce spending.
Who should use the 'no-budget' budget method?
Overspending is a potential risk of this simplified way of budgeting, so someone who attempts this method should be diligent and cautious. This method is best for people who live within their means and who are not fans of budgeting but want to nourish their financial health.
This is not recommended for people who tend to overspend and live above their means, have irregular income or want to use credit rather than debit for purchases.