How to budget without budgeting

How to budget without budgeting - 600pxThere’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.


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.

The main benefit of this system is not so much the system itself, it’s the fact that it forces you to think about how you’re spending your money.

This is especially powerful for couples and we recommend couples sit down and do this exercise together.

Money problems are one of the major causes of stress and relationship breakdown in today’s world. So having a system like this that couples can work on together helps ensure that you’re working as a team and both on the same page.

So I hope you got value from this post. Feel free to leave us your comments and ideas below.

p.s. We are passionate about teaching people how to build and protect wealth. If you’d like to organise a free consultation with one of our experts and learn more about how we can help you, click here.

About Invest for Living

At Invest for Living our aim is to help people make better financial decisions and ultimately live a happier life. We aren't controlled by any big institutions so our goal is not to try and sell you a product. Instead we pride ourselves on providing financial advice that makes sense and is easy to understand. It's not always the sexiest approach but in our 30 plus years of experience, financial strategies that have stood the test of time always work out best.
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