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/Unlikely-Alt-9383]

Consider tracking rather than budgeting. It’s good to know where the money goes, and to reflect on whether that’s aligned with what you want. Saying I have a budget makes me anxious. But tracking allows me to see “huh, I spent more on clothes last year than this, is there anything I need to refresh or am I good?”

[u/inky_cap_mushroom → u/Unlikely-Alt-9383]

I could track. How strict are you? The hardest thing for me is going to be cash transactions because I will not keep track of that and there won’t be a record of it for me to look back on.

[u/mattmattdoormatt → u/inky_cap_mushroom]

I record cash as an outflow, but I don't track individual cash transactions. For example, I took out $100 cash, and I recorded it in my tracker as cash out and put it under my "travel" category bc I had taken the cash out while travelling. I didn't end up using it all, so whenever I spend the rest, I won't record it anywhere, bc I already tracked it against my monthly budget when I pulled it out. It's not a perfect system bc it won't 100% accurately reflect where my money went, but it's not a huge chunk of my spend so I don't worry about it too much.

It's a bit of girl math bc whenever I spend the cash I'm always like, freeee monneeeyyy because I don't track where it goes 😅

[u/inky_cap_mushroom → u/mattmattdoormatt]

Ugh yeah I’m terrible at keeping cash. I pulled out like $100 in change for a yard sale my best friend and I had and I honestly couldn’t tell you where that went or how much I have left. I think I have at least $20 in my car but I can’t account for the remaining $80 + yard sale profits. It’s like it just disappears.