No Budget

An Easier Approach to Budgeting – The No Budget Budget

Budgeting on paper isn’t for everyone. At Hoyes, Michalos we have found that the simple process of paying your bills as frequently as you get paid works for many of our clients. We call it the NO-BUDGET BUDGET.

Here’s the secret: Pay your bills every payday.

That’s it.

  1. First, make a list of every bill you pay every month, with amounts. Your list will include hydro, gas, telephone, cable, and so on.
  2. Next, divide each bill by the number of pays you get in a month. If your hydro bill is $100 per month, and you get paid every week, you need to pay $25 to hydro every week.
  3. Then, go to internet banking at your bank, and program in your bill payments for each payday. Do it for the next six months, so you don’t have to worry about it.
  4. You’re done. Every pay day your bills are automatically paid. No more worries about which bill is due on which day, because on payday, everything gets paid!

Yes, money management can be that easy. Following this approach, you will be much less likely to reach the end of the month and find yourself with more bills to pay and no cash left to pay them.

Here’s Part Two with more details:

If you’d like more information, listen to one of our podcasts about the topic “Is Making a Budget A Waste of Your Time?” with Gail Vaz-Oxlade.

I may get mixed reviews about the advice that I share on today’s episode, but for many, budgeting is a waste of time. Budgeting takes discipline, it takes time and it takes some skill to use a budgeting spreadsheet or app. Because it’s difficult, for some people it can actually have a negative impact on their finances. They lose motivation or interest, and eventually discouraged, stop paying attention to their finances all together.

I’m not advocating that people shouldn’t manage their money, but I am suggesting that you need to find a solution that will work for you and your finances, with the No Budget Budget.

Budgeting Contents: