Frugal Living, Lifestyle

Budgeting Without a Budget




IMG_20160826_090153Accountants are reluctant to tell people what they do for a living. When I’m asked I sometimes say I’m a farmer. And whatever you do don’t say you are an accountant with plenty of free time on your hands; if you do, you are screwed. In a weak moment I mentioned my occupation at a writer’s conference and seven year of my life evaporated as the treasurer. In my younger days I ended up an elder in my church for the better part of two decades. Age has helped me weigh my words more carefully.

Working in a non-profit requires budgeting. It is the only budgeting I have ever done in my life. Budgets personally annoy me. Budgeted expenses are always spent while budgeted revenue is iffier. Hence, the organization is always broke and they look at the treasurer for answers. How do you tell the church council to stop spending so fucking much money? At the writer’s group I could say just that, but it never sunk in. Budgeting is a waste of time in its familiar format. I have a better idea.

Do as I Do and As I Say

Before we start I need to define the difference between goals and budgets. Generally goals are things you want to accomplish. You might have an income or a net worth goal, but I doubt anyone would have a spending goal, as in I want to spend at least this much this year. Budgets create a financial framework for a group to work within, including a family or even an individual.

My money management method is a blending of the two disciplines: goals and budgets. Even though I don’t have a budget, I track my income and expenses like a hawk. The accountant in me wants to record everything. Rather than a budget telling me what I can and can’t do, I am more interested in watching the trend of my income and spending.Continue reading