I hate budgeting.  I hate having to think, every time I go out for a meal “is this in my budget”.  17121706878_0b0d1e7a11_m  I couldn’t live that way, and so  I don’t.

But I also don’t like spending like crazy.   I don’t want to run around making random purchases on shit I don’t need.

So here is how I keep tracking of my spending.

A Daily Target

I know how much money I make each month.  I take that amount and then subtract the major expenses.  The rent on my pad, the rent on my office, internet bill etc etc.  I’m left with a number.  I divide this number by 30 and that is how much I can spend each day.

It’s as simple as that.  It’t not going to win any accounting awards, and that is the whole point.  It’s designed to give me a rough idea of how much I can afford to spend each day.

Some days I spend a lot less.  And so the next day, when I’m out at the shops and see a nice bottle of wine, I think to myself, “hmm yesterday I spent hardly anything, this bottle isn’t going to blow me out.”

I still manage to save

Using this daily target method I still manage to save money.  However if you’ve read this blog you’ll know I’m not a huge fan of putting money away in stocks or a savings account.  That’s dumb money.  I put my money into other businesses in order to increase my monthly cash flow.  Not save it away for when I retire.  I do have a savings account with plenty in it for emergencies.   But that’s it.

This method of budgeting isn’t about saving every penny.  It’s about being prepared.  Removing the stress of not knowing if you can afford to pay the bills at the end of the month.

what do you think?  Let me know in the comments.