Never really wanted to create a budget? The budget in itself is not necessary, to stop and think about your money is the part that is crucial.
When money is coming in and you are not tracking it, the money will be used really fast. To determine your spending either backtrack last month or start a month spending as much as other months and examine what you are spending on. From that moment onwards you can decide where you continue and where you will reduce or completely stop spending.
Never spend your money before you have earned it – Thomas Jefferson
When you have determined what you will use your money on there is another important part. Don’t pre-spend your money before you received it. Using your money before receiving it has the negative effect of having the tendency to spend more than what you have. It becomes even worse if you start to borrow money because the money hasn’t arrived yet. Besides having lost the money you also have to pay the interest.
The advantage of not having a budget is that you are not forced inside the lines. At the same time this is disadvantage, lines would help you decide how much you want to spend and how much you allow yourself. If you a certain what to use your money on you can potentially rock it out without having to put on a strict budget. If you pass under a certain amount you know that you have to purchase less. From the moment you realise that it wont work out without budget you can still give it a go to tidy up your spending.