The No Budget, Budget

The No Budget-Budget—sounds enticing, doesn’t it? And that it is. Just FYI, it’s just about everyone’s favorite except the people that LOVE spreadsheets. Not budgeting at all sure is easy, but oftentimes it’s a formula for disaster. Bills arrive and you flip because you don’t know how you’ll pay them. Or you find something you genuinely long for—a new device, a rare piece of art, tickets to a stand-up routine that’s rolling through your city—but don’t have the money immediately available…so you put it on a credit card and sink lower into debt. (Or rise higher—you pick the metaphor.) Perhaps you miss out on something fabulous you could have easily afforded—an impromptu trip with your BFF, say—because you spent your money on, well, those comedy tickets.

You don’t have to “constrain” yourself by following a tight budget if your earnings or savings exceed your expenses, but you do have to deal with all of these consequences. Using the No Budget-Budget can help you avoid these pitfalls. Here’s how it works: Determine how much you earn after taxes and what you must pay each month. Keep in mind items such as car and homeowner’s insurance, if you don’t pay these monthly. Now, add up what you make and subtract your bills. If your monthly earnings are 50% more than your regular, must-have expenses after taxes, you’re a frontline candidate for a No Budget-Budget. (If you’re in the hole, you’ll either have to snip or start bringing in more money.)

Once you’ve determined that a No Budget-Budget will work for you, set it up by:

• Arranging for direct deposits.
• Setting up automatic bill pay.
• Arranging to have at least 20% of your take-home pay automatically sent to a separate savings and/or retirement account each payday.

Whatever’s left each month after that is yours to save for fulfilling your “soul” wishes—items and experiences that are in tune with your priorities and values; that are guaranteed to enhance your life and offer fulfillment. And when it’s gone, it’s gone. That’s it. This highlights, again, the importance of identifying what’s important to you: Is it the present, or the future and retirement? Is it investing in furthering your career, or spending quality time with your family, or visiting a culturally diverse place that will serve as its own form of education? When working with your budget —position your decision in line with your deeper core values.

Tune into your body, mind, and spirit, then associate all of you with your bank account—not as a way to define yourself but as a method to access your internal compass. For example: If traveling is an important value for you, trim your spending elsewhere and bolster up the travel line. If health ranks high in your heart, increase the grocery line item to incorporate organic, unprocessed foods, kitchen gadgets that will render making your own meals all the more appealing, or evenings out at farm-to-table restaurants.

If nurturing your children is critical to you, sharpen your pencil to see if you can stay at home with them rather than paying for childcare, either by working remotely, cutting expenses elsewhere, or creating a home-based business. Ultimately, it’s far more satisfying to connect money with your soul purpose. Your life, after all, is your career.

Monthly After-tax Income: $__________________

Minus Must-Have Spending: $__________________

Must-Have Spending

If so, set up automatic savings and bill pay.

Automatic Saving (20% of Total)