Reply to How do you budget for something you can already afford?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]

Lol what? Every business has a budget though. It's important to know where your money goes.[/quote]

Sound like PP got someone to think of a budget that would work with his/her brain/personality and set an auto plan in motion.

We are very HNWIs and budgeting season (Dec/Jan) is my favorite.  I just "budgeted" $64k this year for vacations.  (Now I look forward to planning them). I may not spend it, but it's been earmarked. Grocery  $1.5k; property tax $30k; kid tuition $75k; I could go on... most wealthy people budget (or have someone do it for them).  If not, they won't be wealthy long....

OP- start by setting up 3 categories
1. Essential Spend
2. Savings
3. Lifestyle

Define what goes where for you and track where you are. Then set some goals, like 50% essential spend, 30% savings etc.

You can lump or split however you want. For example, essential spend for us includes all home costs, taxes, groceries, medical, etc. I even include the lawn service, housekeeper, and private school there. Lifestyle are things like club membership, vacations, clothing, etc.  These are YOUR categories, you decide how to define them.

I don't think twice about the cost, for example, of a carton of eggs (I notice, I just don't question purchasing) if I stay in budget month to month; or replacing a school uniform when the kiddo spills paint (again) as long as the allocation to that category is ok.  Once you set your structure it's easy to maintain, fun even...

And you don't even have to know the price of a gallon of milk.[/quote]

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