The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / FIRE Wannabees

URL:  http://boards.fool.com/monica-i-never-used-to-have-a-budget-but-i-had-a-19470508.aspx

Subject:  Re: Budgeting Date:  8/18/2003  11:35 AM
Author:  FriedaChopsticks Number:  467 of 5068

Monica,

I never used to have a budget, but I had a rough idea where my money was going. I didn't say "oh, I'm $50 over budget in groceries this month", or anything. But I knew to cut back on X if I spent Y.

One month I realized that I had a little more outgoing than incoming.
I had used Quicken as my electronic checkbook register, but didn't really do anything with it. So I started running reports on where I was spending my money because I had no idea where the leaks were in my financial canoe. Taking an honest look at my expenses showed that I was taking out too much cash each week and that I wasn't prepared for major medical costs not covered by my insurance. Oops.

Sitting down and creating a budget helped me realize what I *really* spend my money on vs. what I *thought* I spent my money on. It was a big difference, and I thought I was pretty good with my money.

HOWEVER, I know quite a few people who don't have a budget and they are fine. They sort of keep it in their head. So, YMMV, of course.

Frieda
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us