Confession: I Don’t Budget.. I Do This Instead

It wasn’t until recently that I realized that I’m misusing the word “budget.” There are certainly personality types that love spreadsheets and crunching numbers. I most certainly am not that type of person.

Why I haven’t thought to write about this until now, I’m not entirely sure. When I use the word “budget” in my writing, what I typically mean is “not overspending.” It’s a little more nuanced than that, so I thought I’d share my “un-budgeting” method that’s worked well for me.

I set up several mini accounts

I can never understand people who have just 2-3 accounts.. Like, how do they not overspend? I don’t get it!

Here’s what I have:

• PNC Free Checking
• PNC Virtual Wallet Reserve
• Edward Jones Traditional IRA
• PNC Virtual Wallet Spend
• Edward Jones Roth IRA
• PNC Virtual Wallet Growth
• Edward Jones Mutual Fund

Does that overwhelm you? It shouldn’t! Read on…

I automate my money to funnel in to each of my accounts.

When my paycheck hits my account, a certain amount goes in to each of my accounts so I never miss it! I choose to manually pay my bills and mortgages rather than automate them (this is just a matter of personal preference), which works well for me.

• PNC Free Checking- $x for every day spending
• PNC Virtual Wallet Reserve- $x toward long-term bills (in my case, my condo fees are only paid quarterly, so I hold it here)
• Edward Jones Traditional IRA- No contributions at the moment; I have this account because it was a rollover from my 403b
• PNC Virtual Wallet Spend- $x/paycheck toward Christmas presents (yes, I save year round for this)
• Edward Jones Roth IRA: $500/month to max out the contributions for retirement investing
• PNC Virtual Wallet Growth- $x toward an emergency fund
• Edward Jones Mutual Fund: $x for investing/long term savings

I check my Free Checking Account daily

I’m sorry, did you I lose you here? This is where my “other type of type-a” comes in. When I only have a certain amount in my checking account, I allow myself to do whatever I want with it. I’ll use it for groceries (first and foremost), nights out, an occasional clothing or home decor purchase, or some other fun treat. I generally know how much I’m spending but checking daily helps me stay on track. If I know I’ve overdone it one day, I just know that I need to rein it in the next few. For me, it feels way less restrictive than mapping out every dollar I have and putting it to use.

Wait, did I say that groceries come out of my fun money?

I did! First of all, I will say that I’m a bit of a weirdo in that I adore grocery shopping, meal planning and cooking so I do have fun spending it! Because I’m almost always only cooking for me (Jim eats at my place 1-2 nights a week), my groceries are usually not expensive at all AND I typically only shop once every two weeks. When the weather is chilly, I almost always make a big pot of soup (this, this, this sweet potato chili and this are my favorites), eat it 1-2 times for lunch or dinner and freeze the rest in mason jars, making sure I completely cool the soup first. When I’m not eating soup or stew, it’s typically a sandwich with my sourdough (yes, I’m still making at least a loaf a week), a salad, some kind of pasta with chicken or sausage or a chicken breast. All to say, I like to cook but am not extravagant about it. Grocery shopping doesn’t have to be expensive when you’re thoughtful about it… And I’ve also found that people sometimes allot more than they necessarily need to for groceries when they’re making a budget so #justsayin…

Are you overwhelmed? Don’t be!

Trust me when I say that once you get the hang of “un-budgeting,” you’ll never go back. Not seeing your money every day is, in a weird way, very liberating. You can pay your bills, save for retirement, and save for Christmas without ever feeling like you’re missing the money. It’s pretty great, in my opinion.

Stay tuned for more information about this but feel free to leave any questions you have about un-budgeting in the comments section below!