Are you exhausted from trying to stick to a traditional budget? You’re not alone.

Many of our clients reach a point where they feel trapped by the rigid category limits of conventional budgeting approaches.

Maya recently shared her frustration after six months of diligent budgeting – she was ready to throw in the towel. So here are some tips we offered to Maya.

The Healthier Alternative to Budgeting

Traditional budgeting requires you to pre-allocate specific amounts to different spending categories. This approach can create anxiety when you’re constantly checking if you’ve exceeded your $500 grocery limit or $200 gas budget.

Tracking, on the other hand, simply means understanding where your money goes after you’ve spent it. It’s about awareness rather than restriction.

Here is how to do track instead of budget:

1. Master the basics: Ensure your bills are paid on time, every time.
2. Track your spending: Connect your accounts to a tracking tool and review weekly or monthly to understand where your money goes.
3. Analyze your patterns: After tracking for 90 days, look for subscriptions you forgot about or payments for things you don’t even really value 3 months later. Ideally you’re looking for spending that doesn’t align with your values.
4. Make changes: Based on your actual spending patterns, cancel anything you’re not using anymore. Remove apps from your phone that you tend to spend on frequently. Use products completely before you buy new ones. Mostly, make a plan to spend differently based on what is important to you.

The Alternative: Reverse Budgeting

For someone like Maya, who’s already disciplined or has more income to go around, reverse budgeting might be the answer. With reverse budgeting, you:

• Automate your savings first (pay yourself first)
• Start with your current rate (4% in Maya’s case)
• Gradually increase it year over year (from 4% to 6% to 8% to 10%)
• Then, don’t worry about categorizing the rest of your spending because you know you are putting your savings first.

At $60,000 annual income, reaching a 10% savings rate puts Maya well above average.

Tips to Make It Easier:

• Schedule 10 minutes once a week to review the previous week’s transactions. When you do it more often, it takes less time.
• Find outside help to keep you motivated and on task.
• Reward yourself for consistency and every time you move your savings percentage up.

Align Spending With Values, Not Categories

The ultimate goal isn’t perfect category adherence but ensuring your spending reflects what truly matters to you.

When you track consistently, you’ll spot the Hulu subscription you haven’t used in a year or the impulse purchases that don’t bring lasting satisfaction.

This awareness naturally leads to better choices without the stress of rigid budgeting.

Ready for a Personalized Approach to Your Finances?

If you’re tired of traditional budgeting but still want financial progress, our coaches can help you develop a sustainable system that matches your personality and goals.

Schedule your free coaching session today to discover which financial approach will work best for your unique situation.

We’ll help you identify your Financial Vitals like Savings Rate (Sr), Burn Rate (Br), and Debt Rate (Dr) to create a personalized path toward financial wellness without the budgeting burnout.