The "Budget" for people that don't want to budget.
The "Budget" for Those That Don't Want to Budget
Budgeting is effective but it’s hard and many people do not want to set up and maintain a budget. It is possible to work without a budget if you take the following steps, in this order, each month:
First - Pay Yourself
Sign up for your company retirement plan on day ONE and contribute 10% of your pay. If you don’t have a company plan, open an IRA and auto transfer 10% of your pay to your IRA each paycheck, up to the maximum allowed ($6,000 in 2020, plus $1,000 more if you are 50 or older)
Auto transfer 5% of your net paycheck to a bank savings account until you have 6 months’ worth of living expenses. This will build your emergency fund. It will take about 5 to 6 years if you have no emergencies.
If you have a large purchase you anticipate in the future, like a first home down payment or a new car, divide the amount you need by the paychecks you have in that time and auto transfer that amount each paycheck to a bank account (this is a separate account from your emergency fund).