The Secret to Getting Rich? Don’t Budget. Like Ever.

Financial gurus since the dawn of time have been pushing budgets as a necessary part of a good financial plan.  But do you really need one?  If you ask me, I'd say - No, you don't need a budget.

And it is not just me that thinks so.  There are millionaires and billionaires who say the same.

After all, you could spend hours upon hours crafting the most perfect budget ever and then never even look at it again.

Guilty.  As.  Charged.

However, with everything in life, it depends on the person.  For some, a budget might be a godsend.  And for others, it's a pain.

The good news is if budgeting is not for you, you don't have to do it.  You don't need to budget in order to take control of your finances.  There are other things you can do instead.

Let's start with the basics.

What is a Budget?

A budget is a document that tracks how much money you have coming in (income) and how much money you have going out (expenses).  It is used by most to keep track of and to cut spending.

Budgeting gives you an overview of your finances and can help you save more and achieve your financial goals.  But it does require lots of planning and consistency.  And it doesn't work for everyone.

Why Budgeting Doesn't Work for Most People

Ok.  I'll admit it.  I don't like budgeting.  Strike that.  I hate budgeting.  It is absolutely boring and very time consuming.  And, quite frankly, just not for me.

But I have found I'm not alone in my dislike of budgeting.  There are others out there who, like me, do not fancy those wee spreadsheets that can feel more like a chore rather than a path to financial freedom.

So what are the other reasons budgeting just doesn't work?  Here's the word on the street.

Budgeting Can Uncover Things You Don't Want to Know

When you budget properly, you go through everything.  Bills, Spending. Income.  And for some, looking at their financial situation, I mean really looking at it, can be overwhelming.

Because when it comes to time to face the music for your lifestyle habits or choices, there's no turning back.  What's been seen cannot be unseen.

But, let's be serious.  We are all adults here.  There should be no reason why we can't woman up and face reality head on.  Right? Right?

It Can Cause Marital Friction

Money, being the number one cause of most failed marriages, it's not hard to see how budgeting can make married life a little rougher.  And some people are just not willing to take that risk.

So they avoid money talks and budgeting all together.  Which I don't recommend.

You should be able to talk to your spouse about money without it causing a riff so deep Moses couldn't cross it.  And if you do have that problem, you may need to seek outside help so you guys can work through it.

Budgeting Feels Confining

The name of the game when it comes to budgeting is limitation.  In order to reach your financial goals, you need to limit your spending and increase your savings.

So, your budget acts as a rulebook for what you can and cannot spend your money on.  And you must follow it if you want to achieve your goals.  So it is binding.

For some people, this is too much restriction, and they can feel bound or suppressed.  If you feel this way too, budgeting just might not be for you.

Some People are too Prideful or Lazy

Cocky much?  Or just can't be bothered?  Well, join the party!

There are plenty of people who feel like they don't need budgeting because they don't want to be seen as needing help with their finances.  

Or those who just can't be asked to take the time and effort to keep up with budgeting.  And budgeting does take a lot of time and continued maintenance.  So I get it.

Many Just Don't Know How

Are you part of the no idea camp?  Yeah.  I was too.

When you are just starting out learning about your finances, you may not know how exactly you're supposed to make a budget. 

What does a good budget look like?  What should I include in my budget?  How much money should I allot for each expense?

All these questions and more could be swirling in your head and making you not so sure about this whole budgeting thing.  So with all these questions and not many answers, many people give up without even trying.

Some Have Tried and Failed

Another good reason why a lot of people don't like budgeting?  Because they've tried it before and failed miserably.

I don't know about you but having something become a complete fail does not inspire me to do it again.  It didn't work the first time so why should it work now?

There are a lot of people who, for one reason or other, tried budgeting and it just didn't work for them.  And because of this, they are not so willing to try it again.

Many Believe it's a Waste of Time and Money

Spending loads of time crafting a perfect budget and then not using it, is an absolute waste of time.  And since that is exactly what most people do, it is no wonder they see it as a waste of time.

Then if you add on to that the fact that some will undoubtedly pay for budgeting apps with all the latest bells and whistles, it could make your foray into the budgeting world and little pricey.  And an utter waste if you never end up using it.

The 3 BIG Reasons You Should Never Budget

There a definitely a lot of reasons why you shouldn't have a budget but for this post, we'll just keep it to the BIG 3.  These are by far the biggest reasons you should never ever budget.

You Probably Won't Stick With It

Now, I don't want to tell you what you can and cannot do but budgeting is right up there with New Year's Resolutions.  

It's something that you get all riled up and exciting about starting and doing, but then it just gets tossed by the wayside completely forgotten because ya know, Life.

Then you swear when you go for round 2 that this time it'll be different.  This time you will actually follow through on it and stick to your budget.  And... come now, you know the story.  It never happens.

So what's the point is starting something that you probably can't or won't commit to long term?

Can you say waste of time?

Waste of Your Precious Time

I know you've heard the saying, "Time is money."  Well, let me tell you, time is wayyyy more precious than money.  

If you lose money, you can always find a way to make it back.  But with time, once it's gone, it's gone forever.  There is no way you can make it back.  No matter how hard you try.

So how is budgeting a waste of this precious commodity?  Well, for starters it takes a lot of time to really plan out a well crafted budget. Then it takes even more time as you should revisit and revise your budget regularly.  

And what's more, you would typically track your actual expenses and compare it to your original budget to see how well you are doing.  This is really time intensive.  

Especially if you are OCD and just really want to go through a bunch of receipts to make sure you are being as accurate as possible.

Not to mention, if you are like me, you will spend hours whipping up a totally killer budget on your fancy excel spreadsheet, only to ... Never.  Look.  At it.  Again.

Really?! Such a waste of time!  Precious time that you could have been using to hang out with loved ones or ... make more money.  Go figure.

So save yourself the time and the headache.  Skip the budget.

Budgeting Stifles Growth

Budgeting in and of itself is all about restrictions and limitations. Placing limits on the amount of money you spend on clothes, on entertainment, and on food.  

Budgeting means placing limitations not only on your lifestyle but also in your mind. 

The basis of budgeting is to control your money by cutting down your expenses.  So when you budget, you are trying to squeeze your life into a box.  Your Budget Box.

But this is very confining and draining and, frankly, probably why most people fail.

Budgeting and Your Mindset

With all these limitations and restrictions, is there any room for growth and creativity?  The answer is no.

Because when you focus on ways to limit something, you mind is geared solely towards restricting.  You can't also be thinking creatively or with an eye toward growth because the two contradict each other.

And in terms of having a growth money mindset, this is a bad thing. Instead of thinking expansively, your thinking becomes constricted when you budget.

You become focused on how you can cut costs rather than how you can grow your wealth.  But if you ever want to escape your 9 to 5 or have enough money to officially be financially independent, you should be focusing on growth and not limitation.

Budgeting can keep you leading the mediocre life you've always led up till now.  With budgeting there is no option to grow.

Because of this, I will give budgeting a hard pass now and forever.  And I think you should too.

The 3 Things You Should Do Instead 

Now, you may be at a lost.  If I don't budget, how can I take control of my finances?  What should I do instead?

Believe it or not, the only thing you truly need to take control of your finances is awareness.  Although some people find that through having a budget, you don't actually need one.

If you just do these 3 things, you will be well on your way to achieving financial freedom and the life of your dreams.   All without having to touch a budget.

Stay Aware of Your Finances

Awareness is key.  If you are not aware of your financial situation, there's no way you'd be able to take control of it.

Being aware of your finances simply means, for starters, knowing just how much money you need to survive.  Talk about Adulting 101. 

You should know your main expenses like your rent, transportation, food, and utilities like the back of your hand.  How much they are, when they are due, etc.

From there, you will know how much you need to make to survive.  And voila!  You are Adulting in all its basic glory.

Of course, if you want to have an enjoyable life, you're going to wanna have some perks.  Going out with friends, shopping, traveling, etc.  But in all this you should still be aware of how much you are spending in relation to how much you are earning.

Such costs should definitely not exceed your income.  Otherwise, you'll find yourself with some serious debt that keeps on rising.

Being aware of your expenses doesn't mean you have to physically write it down every month.  But, if you notice your cell phone bill or electricity bill has been steadily increasing month after month, you may want to stop and see what is actually going on.

Or if your account is looking a little lower than usual.  Pause.  And find out why.

Being aware is easy.  It just takes... awareness.

Automate Your Savings (Pay Yourself First)

The ultimate trick to financial wellness and never having to budget ever, is automating your savings.

Have you ever heard of the Pay Yourself First concept?  It basically means that when you get your money, before you even think about paying your bills, you pay yourself first.

This could mean building up your emergency fund, contributing to a retirement account, or saving up for that down payment on your dream house.

Whatever it is, you take your desired amount of money and move it immediately to your special savings account.  This way you know you are on track for your financial goals.

The best part is there are plenty of banks and apps that will help you automate your savings.  There are even some that allow you to create different savings buckets for any and everything you'd want to save money for: traveling, a wedding, having children, etc.

When you automate your savings and pay yourself first, you are ensuring that you will always have money.  You don't need to budget because you are already saving the money you should be saving.

So to get started, create your savings goal now!  

Only you know how much you will need to retire or have the perfect wedding.  Start automating your savings.  And while your at it, automate your investing too. 

Ensure your future financial success.  

Focus on Making More Money (and Paying Off Debt)

Time to break away from that budgeting chokehold and focus on ways to make more money.

Budgeting forces you to focus on making cuts when instead what you should be doing is figuring out how to make more money so that you can lead the life that you want.

Once you shift your focus from limitation to expansion the world becomes a sea of limitless possibilities.  When your intention is to make more money, you will find ways to do so.

You might get a part time job, start a side hustle, start a business.  

No matter the route you pick the point is instead of putting limitations on yourself and your money, you will be allowing it to grow.

Create Money Goals

To truly get what you want you need to set a goal for yourself.  How much money do you want to have coming in each and every month?

As with everything, don't play it small here.  Really shoot for the stars!  Think about the lifestyle you want to create and how much that lifestyle would cost.  Then go about making it happen. 

Having a specific number in mind keeps you focused and helps you stay on track.  So set a number then hustle to get 'er done!

Create Debt Payoff Timeline

Along with focusing on making more money, you should be focusing on paying off your debt.  Debt is that hole in your sail that will prevent the wind from taking you to amazing, far-off places.

It is a weight that will constantly drag you down.  So you definitely want to focus on paying it off.

Plus, paying off your debt will give you much greater returns than trying to cut your expenses ever will.  So make this a priority instead of budgeting.

When do you want to be debt free by?  How much do you need to pay each month to accomplish this?

Take some time to get some clarity in this.  Then it is off to the races!

Other tips for budgeting alternatives:

Become a Minimalist: 

Becoming a minimalist is not only great for the environment and the world overall but it is excellent for your wallet.  When you are not spending your money on things, there is a whole lot more of it to go around. 

You can save, invest, or do whatever you like with it.  And the bonus is, as a minimalist, there's definitely no need to have a budget.  You're not buying anything anyways.

All in All

Yes, I'm a wee bit biased in my opinions on having a budget.  And yes, I am totally trying to persuade you to my point of view.

Come to the dark side.  

It's actually much brighter than you think!

But, while I know not budgeting is right for me, I also know it may not be the same for you.  Budgeting may be just what you need to turn your financial situation around.

So don't just take my word for it.  Do your own research.  Study the pros and cons of budgeting.  The final decisions always has been and always will be.  Yours.