How to budget without budgeting

There’s a lot of information out there about ways to save money and cut back your spending like:

• going to the supermarket with a list of what you need and only buying stuff on that list, or
• only buying clothes that will go with at least two or three other items in your wardrobe, or
• swap catching up with friends at that expensive restaurant or bar with something else like a fun picnic.

This post is going to be a little different.

It’s not that those other money saving tips aren’t good, it’s just not going to be the theme of this post.

Instead we want to show you a simple strategy that anyone can use to help them save more money.

It goes without saying that it first starts with living within your means. What that really means is that you should be spending less than you make and investing the difference. This is the foundation for getting you to financial freedom.

However, very few people are shown effective ways of how to actually do this…It’s not like managing your money is a compulsory subject taught in schools.

MANAGE YOUR MONEY LIKE A BUSINESS

A great way to manage your money is to think of your personal finances like a business. All good business manage their money very strategically and there is no reason why your personal finances should be any different.

One way to do this is to utilise what we call a “bucket strategy”.

Basically, this is where you set up different bank accounts (i.e. buckets) and you then allocate your income into the different accounts each week or month.

Watch this quick video for an example of what we mean.