Re:The Golden Rule of Personal Finance
by stewx on Thursday November 10, 2022 @08:45AM
(#33546268)
Budgets are not needed if you pay yourself first (i.e., save towards your goals as soon as you are paid) and only spend the money you have left over. Then you can't go into debt and you are meeting all your goals.
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Re:The Golden Rule of Personal Finance
by wisnoskij on Thursday November 10, 2022 @09:35AM
(#33547018)
I think this misunderstands the point of a budget.
A budget is not primarily designed to develop a growing savings account, tho that is a very good side effect.
A budget is designed so that when the rent becomes due on the 29th, or you are hungry and you want want to consume food on the day before your paycheck comes in, you don't discover you have $2.50 to your name.
You could put money aside for food every day, and for rent, and utility, as well, and that would be called a budget. IN fact just paying yourself first, is just a really simplistic underdeveloped budget.
Re:The Golden Rule of Personal Finance
by samsolomon on Thursday November 10, 2022 @09:04AM
(#33546569)
Yeah, the reverse budget. I'm a fan of this. It might not be quite as efficient, but there's almost no mental overhead.
Re:The Golden Rule of Personal Finance
by CGamesPlay on Thursday November 10, 2022 @09:00AM
(#33546508)
Plans aren't needed if nothing ever goes wrong. What happens on the day you can't pay yourself first? That's what the budget should answer for you.
That sounds like a budget.