How do you budget for something you can already afford?

[Anonymous]

Anonymous wrote:I don’t do a budget at all. I have 4 direct depots that happen with each paycheck.

1. Retirement
2. Brokerage account
3. Short term savings
4 college fund

I then blew everything else on whatever I want to spend it on. Sometimes I don’t blow it all and a bunch of money collects in my checking. In that case I usually add more to my brokerage and college fund.

Budgets are for people with spending problems and or cash flow problems.

I’ve always thought one of the most important things you can do for your older kids is to teach them the importance of having multiple financial accounts. Saved money that comes right off the top so you never see it. Bill pay account for fixed expenses that gets filled next. Tot up how much your bills are over the year, add a cushion, divide by number of paychecks. Check it every payday for billing errors and to reassess how much you’re putting in. Shunt the leftovers into an account hooked to your spending card for nonessential expenses, and some attached savings accounts for planned splurges. Check this one every couple days. When that’s gone, it’s gone.