[disneysteve]

I'm never quite sure how to explain my system. Most of it is in my head (and my wife's head). We only buy what we need. If there is something we want that isn't a need, we only buy it if we feel it is reasonably priced and easily affordable.

As far as a formal budget, I absolutely budget our savings first. I get paid every other week and 17% of gross goes to savings. My wife gets paid twice a month and about 80% before taxes goes into her 403b (she brings home less than $80/check).

We don't really budget our spending, but we both just know inherently how much is too much for something. I really can't explain it any better than that. For example, I have no idea how much we spend on groceries, but I can tell you that there are many grocery items that we won't buy if we can't get them for less than a certain price. For example, I won't pay over $2 for a carton of OJ or $2.50 for a 12-pack of Coke. When prices are higher than that, we just don't buy the items.

I do keep a list of our recurring bills - mortgage, insurance, utilities, dues, magazine subscriptions, etc. But I do that more as a record of spending, not as a plan for spending.

I don't know if this makes any sense, but it works quite well for us. I think the key is that we both are naturally frugal and aren't apt to spend large amounts on anything, no matter how much money we have. Also, the fact that we are dedicated savers and investors helps keep our portfolio growing.