You don’t need a budget

Budgeting is difficult for many people. Sticking to a budget can feel like a punishment sometimes. It is like you are depriving yourself. The good news is that you don’t really need a budget.

Instead pay yourself first and track all your expenditure. So if you are paid one million a month remove at least 10% and save/invest it in a unit trust. So remove 100k and save it. Then spend the rest of the 900k as you wish. The only caveat is that you must record everything! Don’t try to stick to a budget. So each time you spend just write it down.

This is a psychological trick. When you pay yourself first you kind of give yourself permission to spend on guilt free stuff. When you actually record your expenditure your brain quietly reflects on what you have just done. Overtime you will begin to automatically cut out useless spending. Once you become a bit more comfortable then you can progress to setting up a budget.

You don’t need a budget. Just pay yourself first and track your expenses.

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