How to save without a budget?

I will show you only the last method. With it, you do not keep a budget, but keep control of your own finances. At least in the minimal sense of the word.

Who doesn't have to run a household budget?

A home budget is a conscious control over your own finances. It is always worth keeping an eye on your money, because as you know, your horse's eye fattens. However, if you do not want to keep a budget, because from the eyes, then from the heart, make sure that you meet the following conditions, and everything will be fine:

• Certain earnings - The constancy of earnings is a clear situation. The constant flow of cash gives you much more predictability (don't confuse it with security) than seasonal work or remuneration based on commissions or bonuses.
• High earnings — Not necessarily on a country scale and market rates in the industry. Your income is supposed to be high enough for you and cover all expenses without any problems. Ideally, at the end of the month you should still have at least a small amount of savings.
• No debts - You finance everything on an ongoing basis from your account, not consumer loans. You cover a possible mortgage installment without problems.
• Costs in check -Since you are not wasteful and have not fallen into the trap of lifestyle inflation, then you just know what you are doing. To some extent, you already have your finances under control.

Semi-budget

Out of chronicling duty, I will present you with a half-way solution. It appears on the Internet and in books under various names, such as “jar system” or “model budget”. It looks like this:

• Fixed liabilities 60% - Basic expenses such as bills, rent, food, etc., the foundations necessary for daily existence.
• Irregular expenses 10% - Costs that you will incur in a few months.
• Cravings 10% - The amount you allocate to enjoy life.
• Short-term savings 10% - Building wealth.
• Retirement investments 10% - When you retire at the same time and pay off the last installment of the mortgage, thanks to them - regardless of how much (if any) you receive from the ZUS - you will have at least something to eat.

Basic expenses always appear, the rest - depending on the publication, but you can also find categories such as large purchases, pleasures, education, financial freedom, charity and many others.

I absolutely do not recommend, and even advise against using this method for several reasons.

First, it is a solution promoted by authors from the states. Most of them became financial experts at the time when it was necessary to sell a book about it. In addition, ours and their realities are very different. Another thing is that the percentages will not match. Not so much because of their proportions, because they can be adjusted, which will simply diverge month after month. And finally, perhaps the biggest obvious: since you have to control 5 categories and juggle their weight every month, then you are simply keeping a budget. Only lousy. Either do it right, or not at all — and don't waste time on half-measures.

How to control money without a budget?

In this case, the control is banally simple. You need two bank accounts or a master account with a sub-account. It is important that you see the amount separated. Now put in the subaccount the equivalent of your monthly salary and start using it from the beginning to the end of the month. Pay only from this one account. Fully natural, without guarding yourself and special sparing. Live as before and do not change any financial decisions. Just remember that you should only have 1 payout value available in your account.

How it looks in practice:

Your account balance: PLN 25,000 - main account.
Your monthly salary: 4.000 zł - additional account or sub-account.

When you pay from an account where you have access to all your funds, you don't feel the difference and basically have no idea what's going on. Sometimes you spend less and sometimes more. It even happens that you save something, but in general you have no idea about it. I know it is. Otherwise, you would not have read this material.

I have a simple test for you that will see if you can control your finances without running a budget. It will take a month and only requires you to make a transfer and check your account balance.

1. Transfer the equivalent of your salary to a separate account or sub-account. During the month, spend money only from it. Regardless of whether you pay by card or cash. It doesn't make any difference, but it will be more convenient for you to stick to one payment method at all times. At least for the first month of testing.
2. Spend money normally. Forget about any form of budgeting. Do not hold back from spending. Just live as before. If you start to change anything, then you will interfere with the result.
3. Check your account balance. At the end of the month, check if there is anything left in the account. If so, well done! You don't have to keep a budget and keep an eye on all those boring like company meeting tables.
4. Make up the monthly amount for expenses. Restore your account balance to the amount necessary for you. In the test, it turned out that 3,700 PLN is enough? Transfer only so much, let the rest remain in the main account. It turns out that you save $300 a month.

That's all you have to do. Transfer yourself the appropriate amount once a month. Isn't it banally simple? Now, the only thing you need to care about is not exceeding this value. Not everyone has to be interested in finances or keeping a budget. Keep your carefree freedom while building savings at the same time. I hope that's enough and you won't have to worry about looking for a hole in the whole thing.