Why I don’t Like Traditional Budgeting:
- Moralizes subjective decisions, too many “should”s and “shouldn’t”s
- The monthly categories are rigid, while actual expenses change from month to month (dining out, gifts, vacations)
- Underspending on one category doesn’t roll over to the next month
- Takes a lot of time and effort to run
- Large number of moving pieces
- Is reactive rather than proactive
- With long delays between decision and evaluation, you forget what was going on when you made the decision
- Anchors decisions on past budget, rather than current priorities
- Doesn’t prevent overspending
But I really like:
- Accumulating wealth
- Financial security
- Freedom to be frivolous
- Being generous
- Autonomy
- Commitment to goals
- Knowing where money is going in real time
- Having an adaptable system
- Making my money personal