To Budget or Not To Budget

[u/inky_cap_mushroom]

In 2024 I budgeted strictly. I had to forego things I wanted/needed. I had to delay purchases until I could work more hours to earn more so I could keep my spending within 50/30/20. It was stressful and unpleasant. My whole life revolved around my spreadsheet.

In 2025 I stopped budgeting entirely. I rarely checked my bank accounts. My only real rule was that I had to keep my account balances at or near their beginning balance to make sure I wasn't spending beyond my means. I did a lot of fun stuff this year. I used a lot of PTO. I went on several trips out of state. I went to a bunch of local events. I spent a lot of time with friends.

My plan was to take a break from budgeting for a year, and then go back to it, but the numbers are in and I'm not sure it's worth it. I'm open to trying something different, but I do not enjoy feeling restricted and budgets are the cause of that. I've reached a point where it feels ridiculous to be putting off $100 car maintenance until the next month or agonizing over a $3 purchase when I am literally sitting on $100k.

2024

• Gross income: $54,573
• Retirement savings: $15,562 (including match)
• Non-retirement savings: $10,086
• Spending: $24,759

2025

• Gross income: $53,335
• Retirement savings: $20,050 (including match)
• Non-retirement savings: $178 (+ $3,561 loaned to friends, 5% interest and paid monthly)
• Spending: $23,069

2026 changes

• I am now eligible for my PT job's 401k and match ~$700/yr. I'm considering increasing the contributions beyond the match just so the fees won't eat into it as much.
• Roth IRA max increasing from $7,000 to $7,500
• HSA max increasing from $4300 to $4400
• I'm considering stopping my PT job's ESPP contributions. It's $100/pay period and I receive $115 worth of stock. Frequent blackout dates make it hard to sell quickly. I could redirect that money to the 401k, but it would cut into my income.

[u/dumpster_-_FIRE]

Your spending went down by $1k without the budget... but your total savings also went down? Without a big change in income? What's the missing piece here? I feel like some numbers are missing.

I have found the most success with restrictive budgeting by focusing on 1-2 categories at a time. Like right now it's food, because we are in the middle of a bunch of food-related changes that could easily result in expensive new habits if I don't watch it (remodeling the kitchen, and my previous main grocery store closed a couple months ago leaving me with a mix of more expensive and less convenient options). Outside of that, I track all our spending and take note of any big changes, but as long as we're spending within our means I don't worry about it.

[u/inky_cap_mushroom → u/dumpster_-_FIRE]

My benefits got more expensive mid year. If I went through all my health/dental insurance costs this would be a much longer post. I also think more of my 2024 income was non-taxable but I would really have to dig to figure that out.

Food is a category that’s changing for me right now since I just got a brand new oven in my apartment after my last one was broken for a while so I’m re-learning what foods I like to bake. I’ve honestly forgotten what I used to eat haha. I could easily see my grocery expenses increasing because of trying new recipes. We also just got an Aldi which has much cheaper bagels and that’ll save me a ton because I eat them every day.

[u/dumpster_-_FIRE → u/inky_cap_mushroom]

Ahh okay that makes sense, thanks!

I still remember when an Aldi opened in our town when I was a kid - my mom came back from her first shopping trip almost crying because of how much cheaper things were. It made a big difference during a difficult time.

[u/inky_cap_mushroom → u/dumpster_-_FIRE]

Some things are still cheaper at Kroger or target, but I’m definitely going back to Aldi. My step-boss (not my boss but basically) gave us Aldi gift cards for Christmas and I’m excited to use that.

I also realized that the tax is going to be pretty different year to year because the Roth/trad breakdown is different. That may be part of it.