Personal Budgeting Alternatives

Statistics would show that 50% of adults in America could not afford to pay for an emergency worth $400. This is how bad the situation has become for a very large number of the population. Add those who are in debt and the numbers are even more alarming.

One of the reasons for this is our failure to budget. Most of the time, just the thought of planning a budget makes you tired already. We are already so busy and tired with our jobs and we feel that planning for our budget is another time consuming and energy draining activity.

Why People Don’t Like To Budget

It takes a lot of discipline to keep a record of all the spending that we do. We are not like accountants who love this and do it for a living. Tracking and recording is a tedious process for many who would rather focus on other stuff.

Time is a luxury that most people don’t have too much of anymore. Free time is precious and we don’t want to spend this looking at our spreadsheets and analyzing our daily spending habits. Rest and recreation after a week of working hard are preferred than doing budgeting on a weekend.

Having to write everything that you spend money on can give you a feeling of being deprived. There are things that you would love to buy, but looking at your budget tells you that you can’t afford it. You work hard, but you still can’t spend on the things that you want.

The question now is can you really afford to live without a budget? It’s possible, but we know that overspending is the main reason why people get into huge debts which is a financial nightmare.

The good news is there are alternative ways that we can use in order to manage our spending. Here are some personal budgeting tips for those who don’t like budgeting.

The Envelope Method

This is an easy and simple method that anyone can do that does away with the detailed budgeting system where you have to track every cent that you spend. As with any budget system, the key for this to work is not to overspend.

To get started with your new way to budget, you just need to get envelopes and label each based on what you spend money on. These are not your fixed expenses every month because you can’t budget this type of expense. We focus on the variable expenses like entertainment, groceries, clothes, restaurants, etc. Once you are done with the labels for each envelope, place a set amount of money in each from your paycheck. This is simple budgeting already, you determine an amount that you can spend on a particular category without going over. You should not spend on an envelope that is empty already. A simple and easy way to manage our spending.

Open Different Bank Accounts

This is another method that is also easier to do compared to the traditional budgeting system. All you need to do is open various bank accounts and put labels on each account just like the envelope method. You can set up an account for bill payments, college funds, vacations, emergencies, etc. You also deposit a specific amount for each. You may be surprised to see a lot of money in your accounts at the end of every year as long as you keep depositing in it on a regular basis. Putting in $20 a week in your travel account will amount to $960 in a year.

Credit Card Method

For those who have the discipline in using credit cards, this method can be a convenient way to budget. You just use your card for all your spending. Try it out for a month and make a print out of your statement. This is where you can track your spending and make adjustments if needed. Most credit card companies offer cash backs and other rewards so this is an added bonus if you use this method. If you are in debt with your credit card, then this method is not for you.

Budgeting is a financial tool that is hard to live without. It is great to know that there are alternative personal budgeting tips that we can apply and still get the same results like a traditional budget..

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