Quote:
Originally Posted by creditcardfree
My budgeting is not so defined that we can only spend $X on groceries, or $X on entertainment. However, I realize that the less I spend the more I have for retirement, or paying off debt, or saving for a Disney World vacation. My budget reflects my (our) priorities.
If I have anyone sitting in front of me complaining they don't have money for $X, then I challenge them on how they are working to accomplish that goal...or if it is a true goal. Do you really value your daily latte, more than the satisfaction of paying off debt, saving for retirement, or not having a balance on a credit card? For me the answer is no. If they really value the latte, but not the vacation...then stop complaining about not having $X for vacation!!
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This is pretty much how we work, too. We do not have a budget that designates $X for groceries and $Y for dining out and $Z for clothing. We do have a budget that designates set amounts for savings, though. How the remainder gets spent doesn't really matter and can vary considerably from week to week and month to month.
I always get annoyed when someone says, "I can't afford that" when what they really mean is "I choose to spend my money elsewhere so I've got nothing left." For example, don't say you can't afford to contribute to a Roth account if you go to a movie every weekend and order out for lunch 5 days a week. Oh, and you also lease your car and get a new cell phone every 6 months.
I think we need to replace the word "budget" with something that people don't associate with restrictions. I like something like "personal financial plan" because it isn't just about what you do and don't spend. It is a lot more than that. It is also about what you save, how you will meet your goals, etc.