A Typical budget You are asked to decide how to allow you to do so Spending In advance, then follow every dollar you spend to make sure to follow the plan.
This boredom Lower For most lifestyles, that is why the study after study shows budgets Informed and uninterrupted.
“Most people do not maintain a budget. Why are we?” Financial teacher and author “”Money for husbands“We have to collect months of spending in a complex spreading schedule for … What? You feel bad about our spending?”
Sethi and other financial experts retracted against this model work “giving every dollar job” to manage money and offered new ways to stay on top of your money without Stress and accounting From the budget.
Here are four ways to abandon your budget and money management without resorting to restrictions, shame, or constant counting of pennies.
1. Establishing a plan 80/20 (original “anti -budget”)
Paula Pant, writer and Foundation for the Financial Media Company bearing anything, formulated the term “budget control” in 2013 when a Money management plan 80/20 “The easiest budget ever.”
Pant -budget’s anti -budget plan aims to help you allocate money to provide and deal with debts, investment with them, without worrying about the rest of your spending. It includes two simple steps:
- Decide the amount you want to save (recommend at least 20 % of your income but it says you can start with less than 1 %).
- Drag this amount from the top.
Once you allocate your savings for each salary, Pant writes, “relax around the rest.”
Pant stands the simple anti -budget in a blatant opposition Not practical in advising advice. It has created a 8/20 plan for the majority of people who will never adhere to restrictions and tracking, but they still want to make progress in financial goals.
Since 2013, however, Living costs It rose sharply compared to stagnant wages. This makes it difficult for people to save 20 % of their salaries and even difficult to “relax around the rest” without a strong plan to make sure to pay bills.
Dissolved financial experts built the Budget anti -budget position to build plans to keep tension in tension with the processing of payment facts for life in 2025.
2. Use values -based spending
Jin Smith and Jel Siraiani, authors “Buy what you love without breaking” and hosts Frogal Friends PodcastOften a pant talisman is quoted, “You can bear costs anythingBut not Everything“
Their book puts the distinctive “values -based spending” approach, which avoids the Persnickety budget and helps you choose what must be purchased based on what you can most.
“This method does not start with mathematics, but it begins with the most important things for you with permission to spend!” Smith said in an email. “It is better to say” yes “and easier” with our spending in a way that is in line with the needs of everyone. “
“It is related to the best and easier saying with our spending in a way that is in line with the needs of everyone.”
Smith and Seriani compares the traditional budget with a Yiu diet: “full of restriction, deprivation, shame and messages about” cutting “,” trimming “,” counting every small penny. “The values -based spending, on the other hand,” emphasizes self -understanding, individualism and flexibility. “
In their book, they notice the first step to “buy what you love” is to know what you like. They created a framework they call Four F to help you naming the highest values. Four Fns represents the categories of things that these people have identified more: family, friends, faith and work.
Using this framework, you can look at your spending and habits and determine the deeper needs you try to meet: for example, maintain family relationships, spend time with your children, communicate with friends, explore spiritual or success in a job you are interested in.
“We prefer to focus on values before the numbers,” Smith said. “When we can start the most important things, determine how we want to spend (or not spend) on them, then we can define simple categories for the place where our money is going every month, with room for adjustments as needed.”
Once this deep need is determined, you can decide whether it is necessary to spend money to fulfill it or not. You may buy holiday gifts to communicate with the family or expensive lunch meals to spend time with friends, for example. Are these purchases necessary, or can you meet the needs without spending?
Smith said that determining the values that they are trying to honor and where spending is or unnecessary [and] More creativity in the roads [you] Keep.
3. Follow the conscious spending plan
Sethi, founder of the financial education platform I will teach you to be richHundreds of thousands of followers encourage “living your rich life outside the spreadsheet.”
“If you follow every dollar, a good idea in the same way,” Seathi said: It is a wonderful advice that almost no one can follow. “
Sethi encourages people to “focus on questions worth $ 30,000, not $ 3 questions, by automating your investments and focusing on major spending areas of three to five.”
“Tracking every dollar is a good idea in the same way that” follow every minute of your day to become more productive “: it is a great advice that almost no one can follow.”
To support this approach, it is presented to him Conscious spending planHow to go to savings and spending in four main categories:
- Fixed costs (Including bills, debt payments, grocery stores, clothes and other living costs): from 50 % to 60 % of the home seizure wage.
- InvestmentsIncluding retirement: 5 % to 10 % of home salaries, “although more better,” added.
- Savings For holidays, gifts, emergency situations and more: 5 % to 10 % of the home seizure fee.
- Steel -free spending (Unwanted, on anything you want): 20 % to 35 %.
Similar to the Pant approach, Sethi said: “You do not need to spend hours every month in entering the data in a spreadsheet. Just click on your four main numbers, and continue your life.”
4. Create a map of money
In my book, “You do not need a budget“I recommend creating”Map of money“To stay aware of your financial situation and spending without worrying.
Similar to Sethi Automatic spending, the money map focuses on four columns of your money:
- resources: Money, assets, assistance, and credit available for spending.
- Obligations: The bills and expenditures that you have approved every month.
- Goals: Savings and debt plans.
- Spending: The amount available for spending on everything else.
The money map gives you seeing your available resources (beyond the post -income) and the methods you want to use money. You can use this understanding to prepare an automated budget-control method to finance your obligations and goals, then spend it freely from the remainder-which I call “yes” box.
Unlike PANT or Sethi plans, the money map does not give priority to using money on another person or recommends any percentage of resources towards any category. Instead, it gives you a vision of how financial decisions on your general financial situation, so-on the values-based spending in Smith and Sirianni-you can use money in any way that suits you.
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