Never say budget

[luckyzimmy]

There is a book on my shelf by MARK SKOUSEN, entitled 'Never Say Budget' that I can relate to as I view a budget as a restriction on my freedom to spend. I suspect many others use the same excuse. The book explains how you can be quilt free and go on happily spending your paycheck.

The secret is simple, and it just uses the advice given long ago in the well known book -THE RICHEST MAN IN BABYLON. Simply set aside 10% of your earnings each paycheck and put it in a sound investing account and let it grow. Then you can feel free to blow the rest of your paycheck on any thing you want.

As a financial planner, I have suggested this tactic for many years. Some will listen, some won't.

You can still buy a copy of 'The Richest Man' on any internet book store. Young or old, it should be put on your 'must read' list.

[YLTL_Dan]

I think that's the biggest problem with a budget - people automatically associate it with pain. I typically call it a 'spending plan' instead and still promote people to get on one.

[minerva]

Treating a budget as a spending plan is a very good idea. I notice when I mention budget to my friends and family, they cringe. But a spending plan sounds more palatable. Maybe suggesting to use something like the balanced money formula from the book All Your Worth by Elizabeth Warren. This way you just think in percentages. Roughly 50% needs, 30% wants, and 20% savings. But then again, it's hard to get people to save even 10%. In this case they can adjust the formula to their liking. That's what so great about personal finance.

Minerva

[J. Spence Financial]

I think the monthly budget is probably the most important thing you can do for your financial freedom. If you can at least see what you are spending that might be enough to influence how you spend in the future. I do however like you simple concept of 10% and blow the rest. I can see a lot of people using that approach since it doesn't involve much planning or disicipline. You can set that up automatically by direct deposit nowadays.

[PMMM]

There is a book on my shelf by MARK SKOUSEN, entitled 'Never Say Budget' that I can relate to as I view a budget as a restriction on my freedom to spend. I suspect many others use the same excuse. The book explains how you can be quilt free and go on happily spending your paycheck.

The secret is simple, and it just uses the advice given long ago in the well known book -THE RICHEST MAN IN BABYLON. Simply set aside 10% of your earnings each paycheck and put it in a sound investing account and let it grow. Then you can feel free to blow the rest of your paycheck on any thing you want.

As a financial planner, I have suggested this tactic for many years. Some will listen, some won't.

You can still buy a copy of 'The Richest Man' on any internet book store. Young or old, it should be put on your 'must read' list.

But I would assume you also recommend that people have an emergency fund and don't go into debt? Or do you recommend that they live paycheck to paycheck? (I don't believe you are saying that right?) I'm reading many articles of late that say that the days of making good money investing in mutual funds is much harder than it was in the past. With the advent of huge market swings and a true world economy the average investor will find it more difficult to see the returns as in the past.

isn't it also wise to know where your money is going and why? I've found that budgeting, or knowing where every penny goes, still allows me to spend my money as I want. I fund those things that are important to me first. It's really all about choices and making the right choices for you and your family. I guess I just don't equate the word budget with something bad. It's just a word. It's more about priorities, common sense and what you want out of life.