It’s the most common advice that you’ll get from almost every financial adviser:Start a budget.
Tracking your income and spending is one of the first steps to getting your financial house in order.
Yet most people hate budgeting.
Only about a third of American households maintain a monthly budget,according to CreditDonkey.
Here’s how the no-budget budgeting system works and whether it might be right for you.
What is the no-budget budget?
A no-budget budget might seem like an oxymoron, but it’s a fairly accurate name.
Note: This budget only works if you’re earning more money than your required expenses every month.
How do I set up a no-budget budget?
You’re not quite finished, though.
To make the most of the no-budget budget, you’ll need to automate your spending and saving.
Sign up for direct deposit, for example, and set up automatic payments for your monthly bills.
In other words, integrate your savings and long-term goals into your fixed expenses.
That doesn’t mean you should spend recklessly.
Once your monthly expendable income is gone, you’ll have nothing left.
If you don’t spend all your discretionary money each month, that’s great.
Simply shift any extra money into a savings account or pay down additional debt.
Then you could start over fresh in the next month or pay cycle.
Who’s a good candidate for the no-budget budget?
The no-budget budget works best for people with steady incomes that don’t change from month to month.
It’s also good for people who spend on occasional expensive items like concert tickets or fine dining.
For more, see our picks for thebest savings apps.
