You Don’t Need No Stinkin’ Budget!

That’s right, you don’t … if you are doing or have done one or more of the following:

  • You know how much you need to save each month for your various goals and meet or exceed those amounts each year.
  • You regularly review the items on your checking account statements, including transfers to and from other accounts.
  • You aren’t carrying balances on any credit cards.
  • You track your spending details online and are living below your means.
  • You track your spending on a spreadsheet or accounting program on your computer and the amounts match the flows in and out of your checking account.
  • Your budget accounts for major, infrequent expenses, such as car purchases, home décor, insurance deductibles, family emergencies, property taxes, etc., and you have a cash reserve to cover them as they arise.
  • You know the year you can retire comfortably based on what your portfolio needs to be to maintain your planned lifestyle.
  • You know the most you can safely spend each year after you retire and it is more than what you plan on spending.
  • You have enough income sources in retirement such that you don’t need to tap into the principal of your portfolio. This is the ultimate financial achievement

How many of these are Yes for you? If it's the last one, you are all set!!

If you feel you need to get started on all of this, the easiest one is to start tracking your spending online. You set it up and then start to receive weekly notifications to your inbox with a summary.

This will catch every dollar … and light a fire under your butt as you (as it did mine) start to see the numbers.

You’ll start to ask yourself, “Do I need something or just want it? If I stop spending money on something, will it have an impact on everything else?”

Do you have a different way to manage your spending that works for you? If so, what is it and how do you do it?

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