3 Reasons You Don’t Need a Budget in Order to Save Money
Written by
Chris Adam
Edited by
T. Woods
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If you’re looking for a reason to not make a budget, try this one: You want to live like a millionaire.
Okay, not all millionaires live a budget-free life. But there are plenty of millionaires and financial experts who say you don’t need a budget to find success with your money. Here are some reasons a budget may not be necessary.
1. You Don’t Overspend
Business Insider lists “They don’t budget” as one of the things millionaires do differently from everyone else. That’s because they have developed their self-discipline habits and avoid overspending.
Annette Harris, founder of Harris Financial Coaching, told Forbes that if you’re debt-free, investing and saving, a budget may not be too helpful. “If you don’t have children that you’re putting through college and don’t foresee any significant purchases soon, you can continue spending wisely and building your net worth,” Harris said.
2. Budgeting Stresses You Out
Here are two other big reasons a budget may not work for your life: You lack commitment and budgeting greatly stresses you out.
Let’s be honest — creating a budget and sticking to it can be extremely difficult. If you’re not going to commit to actually using the budget, what’s the point in having one? Especially since it can bring a great deal of stress to your life.
In general, many people start feeling stressed about money and create a budget. They figure success is reached when the goals are met. “Do it wrong, they conclude, and you’re a failure and are more stressed than before,” according to Forbes.
3. Alternative Options are Available
Here are a few things to try instead of monthly budgeting:
- Have an annual budget. This is a more forgiving way to manage your money and can create less stress than having a weekly or monthly budget.
- Follow your goals. You could manage your money by focusing on big goals such as buying a property or building a fund for college.
- Be more mindful of your relationship with money. Take a serious look at how your money habits impact your life and overall happiness. You can make changes without needing to create a strict budget.
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