How do I make a budget if I hate budgeting?
Keep your budget easy. List your monthly after-tax income, fixed expenses, discretionary expenses, and savings targets, then determine how to allocate each dollar. Create a few big categories, then spend 10 minutes a week reviewing your budget. A budget is meant to help you decide where your money goes; you don't need to track every expense with perfection.
How to make a budget when you hate budgeting
Use the smallest budget that will allow you to make good decisions. There's no reason for an elaborate spreadsheet or many categories.
- Write down your monthly net pay. Your gross pay isn't what you're going to use in the budget. Instead, use the amount that ends up in your bank account once taxes and other items have been withheld.
- Write down your fixed bills. This category should include your rent/mortgage, utilities, insurance, debt payments, subscriptions, etc. Include all costs that you generally know about.
- Calculate your spending flexibility. For example, use a broad category such as "groceries," "transportation," "eating out," "household supplies," or "personal spending."
- Put money aside for what matters most to you. Savings, additional debt payments, yearly expenses, and other objectives should be considered before determining what's left for discretionary spending.
- Put the rest of the cash to work. The rest can go to fun spending, savings, debt repayment or just a general buffer.
Don't make your budget more complicated than necessary. "Food" might be one item on your list, instead of breaking it down further with grocery, coffee, take-out and restaurant budgets. You don't need to keep a record of every penny spent to have a helpful budget.
Spend around 10 minutes per week reviewing your balances, upcoming expenses and your budget categories. Change what needs to be changed. It's not a test, it's a choice.
Budget for normal life. Fun, entertainment and impulse spending can all be in the mix. A plan that permits some of these items may actually work better than one that excludes them. If your budget keeps failing, don't beat yourself up; change the plan!