I feel weird typing this, but I do not have a budget.is a budget this fun?
To me, they don’t make sense. Mint will tell me, “oh, you’ve gone over your budget for “Home” this month” when I buy a vacuüm filter. Should I have budgeted that $11? Should I add money to the house budget so I don’t go over in a month where I do have to buy something house-related?
Guys, am I missing the point?
I mean, everything in my life is automated. Direct deposit, bill payment, it’s all done for me. I use no stamps, I incur no late fees, I’m rarely at the credit union. In fact, when I am at the credit union, it’s because I’m depositing money I made in addition to my income, so it’s a good thing!
Are goals the same as budgets? I put x dollars here, y dollars there, and z dollars into my IRA.
Which is still a traditional, even though I thought I was going to change to a Roth.
It feels almost (nay! entirely!) irresponsible to admit that I don’t have a budget, but I think my goals do the same thing.
Short Term Goals
- Pay off student loan
- Pay off car loan
- $5K into IRA
- 6 month emergency fund
So, each month I put money into these goals (although, sorry, emergency fund, you’re still at $1000) and spend whatever is left on rent, health insurance, and car insurance. Then whatever’s left of that gets spent on groceries. I try to keep my grocery spending to $60 a week but I don’t punish myself if I spend $80 or even $100.
Do you guys have budgets? What does a budget accomplish that I’m missing?