Michael on September 2nd, 2009
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I’m not a fan of traditional budgeting.

You: What do you mean when you say “traditional budgeting?”

I’m talking about where you make a list of all of your expenses and try to ensure that you don’t spend more than, say $35 on entertainment or $50 on groceries for a week.

You: Sounds like classic budgeting to me. What’s not to like?

First, I have no patience for such a budgeting process.  Since I don’t recommend others do anything I’m not willing to do, I can’t endorse the technique.  Second, and more importantly, I don’t think budgets like those actually work.

You: Why not?

They’re too inflexible to deal with the spontaneity that makes life what it can be.  Instead of budgeting your spending, I recommend budgeting your saving. To get a better idea of what I’m talking about, check out my post at Mint.com:  3 Dangers of Conventional Budgeting

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2 Comments to “Budgeting Can Be Dangerous”

  1. kdice says:

    I just came across your site and am reading through the archives… I love the little conversations you have!

    I couldn’t agree with you more on this point. Move what you need to into different savings/ investment areas and recurring bills off the top, then whatever you have left is what you have to spend. I could never do the minutiae of tracking every penny…

  2. Michael says:

    @dkice- Thanks for stopping by and leaving your comment! Welcome aboard!

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