Budgets – Do you do them? I don’t Anymore…

21 Responses

  1. Team CF says:

    As soon as you develop that state of mind where you keep money in check all the time, you technically can drop de budget. Some sense of what goes in and out is enough at that stage. Starting to have the same feeling about our budget!

    • Rob says:

      hey cheese

      Exactly! Almost every month the main expenses are the same and becomes somewhat clockwork.
      Just don’t waste money on stupid shit (constantly) haha


  2. Christine says:

    Hi Rob, I really enjoy reading how you did all this. Not sure about downsizing. The cost of selling your home and buying a smaller, cheaper one could eat up a lot of those profits. We are in the same boat and decided to stay put for now. Keep up the good work!

    • Christine says:

      Almost forgot your original question: I used to be a budget hound as well, until I realized that, as long as I put money aside right away, the rest is mine to spend. Plus, like you, I know our expenses by heart now.

      • Rob says:

        haha thats awesome. Thanks Christine, love hearing that! You put a smile on my face.

        sounds like you are on the right track as well if you have a general idea where your money is going now too! That and paying yourself first, might be the 2 most important things in personal finances.

        As for downsizing maybe initially. But property taxes are high where i live and there’s some dirt cheap areas. Plus our house could sell for a nice chunk of change. =)

        check out some info on geoarbitrage its definately really interesting!

        Have a great day. Thanks again

        • Christine says:

          Hi Rob,
          Looking at property taxes as well is a very good idea! I guess I did not expect such a difference.
          I should explain that we started by calculating our monthly expenses, opened a ‘house expenses account’ for this, and put a set amount of money in it for taxes, utilities, insurance, etc. Set and forget. During our accumulation years we paid purselves first, then had fun with what was left, and often we still had money left to invest. We are now retired and still have our house account. We just don’t save anymore, though I admit I still love stock trading and any money left at the end of the month still goes into stocks.

          • Rob says:

            good points.

            Great to hear Christine. It sounds like you are living the dream now. Your financial planning was fantastic. Nice work!

  3. I’m in the same boat. I always aggressively pay myself first, and whatever is left I either spend, or throw into other investments.

    I’m probably one of the less frugal money bloggers – but life is short – need to enjoy it now too. Pay yourself first, and everything will work out in the end.
    Jordan @moneymaaster.com recently posted…Time to get excited Canada!My Profile

    • Rob says:

      hey Jordan

      couldnt agree more. I kinda feel the same. I like to tip pretty well when we go out to eat, we hand out full choc bars at halloween (as divy dad pointed out, this aint something you see most bloggers do)

      Live and love life now, but continue saving for the future.

      cheers man!

  4. DivvyDad says:

    We did budget at one time as well, but now we are also big proponents of paying ourselves first and we have been at this for awhile so we generally know what we are spending money on. With that said, I do still track our monthly expenditures once per month and then at the end of the year we evaluate and see where we spent less or more than we expected to based on our historical trends.

    We are fortunate to be able to invest a decent amount of money every month, cover our bills and commitments, and still have some money for less frugal spending. As you noted, some months we don’t have as much discretionary spending and then I will direct extra into investments.

    I guess one could say we technically still budget since I am tracking it, but in my mind it is not akin to what most consider budgeting. Part of that may be because the typical reaction to the word budget is one of restriction, or being miserly, and I don’t feel that fits us at all.
    DivvyDad recently posted…Recent Buy :: BlackRock, Inc.My Profile

    • Rob says:

      hey dd

      I got to say thats a pretty good system. Might even giver a go just to keep a eye on the little stuff.

      Anyways whatever you guys are doing is working. You been buying stocks left right and center, like todays blackrock buy!

      keep it up man.

  5. I have not done a real budget in years! We simply have a general idea of what we need to save and just work towards getting expenses to fit in with the rest of our income. Sometimes, things go upside down and our saving-goal falls by the wayside. Oh well, we move on to the next month!

    • Rob says:

      hey Enoch

      seems to be the general consensus around here. I guess it depends which side of the blogosphere your on. haha.

      thanks for swinging by!

  6. Russ says:

    Hi hi.

    Me and my Wife have a twist to the whole budget thing we find works for us.
    We have 2 joint bank accounts.
    I was able to get my paycheque to split between the 2.

    Account 1 gets 600/week .
    Thats where the mortage , insurance , resp for the kids , internet , all bills come out of. Plus a bit of savings. We figured out what the bills would be for the year/month , over estimated a bit and worked backwards off that. Cant change hydro and mortgage much.

    Then the rest of the $$ go into account 2 for food , fun , gifts the rest.
    Thats what we spend because that is what is left over after the bills are paid.

    • Rob says:

      Hey Russ

      Thats a great setup. When me and my wife ( then gf) first moved into a place together thats almost exactly what we did.
      It works well too. Any financial planning is better than none.

      Cheers Russ.

  7. Budgeting can be very useful especially in the beginning stage of personal finance. Once you learn to control your money, you don’t have to budget anymore. I started to budget about 10 years ago and still do twice a month because of my preference. I also used my budget as an instrument to stress test mortgage payments before buying the property.

    • Rob says:

      hey German

      so true, both times we bought a house the budget was key to stress testing if we could afford one. The banks will easily say oh yeah we will give you x, but you dont necessarily want x. you want to feel comfortable still financially.


  8. Hey Rob,

    I think the important thing is that you at one time DID maintain a budget. As a result, you learned/figured out what your expenses were. You appreciate the exercise of knowing where your money is going and so now you can have some freedom regarding the necessity to do so.

    I feel there’s a place for a budget, but also feel there is flexibility to take a break from it once the engine is running smoothly.

    Take care,

    • Rob says:

      hey Ryan

      Welcome man, love seeing new faces around here.

      You make some great points. The budget did change our lives and opened our eyes to our finacial picture.


  9. GYM says:

    We don’t budget for our joint finances and I don’t budget for my own finances. I do pay myself first (love it) and we pay our joint account monthly too.

    I tracked how much we spent on food a few times and that got a bit depressing so stopped, haha!

    Great post Rob! No point arguing with your spouse when you are both doing a good job of tackling debt and adding to savings!

    • Rob says:

      haha Gym

      Seems like food is always the killer. Its so easy to get sidetracked in that area..

      Pay yourself first makes everything so easy.


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