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How do you stay consistent with a budget? My financial management is a rollercoaster. (lemm.ee)

submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]

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How do you manage to stick it out long term with budgeting? I use YNAB in periods for my economy. And every such period, they usually last 3 months to 1,5 year or so, my economy is in amazing condition.

Then I forget about if for a while, sometimes I find it a bit cumbersome and lose track. Suddenly I stop using it, and at that point I start splurging on stuff I really shouldn’t.

So then I start budgeting again.. rinse and repeat. It’s a stupid cycle I’d like to get out of. Any tips and ideas, how do budget pros in here keep at it?

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[–] [email protected] 10 points 1 year ago (2 children)

If you're having trouble with abstract money discipline. Consider using cash.

There's an envelope of methodology, you take your income, you put it in different envelopes for different budget items. When the envelope is empty you can't spend anymore.

Don't use credit cards, don't use debt, don't use debit cards, make sure all the money you spend is cash physical money that has to leave your hands.

The envelope methodology can be really helpful for people, cuz they can see how much money is left in the envelope, and they know when they need to stop. It's very physical.

[–] [email protected] 6 points 1 year ago (1 children)

That would likely work quite well, unfortunately I live in Sweden and I kid you not when I say about 50% of establishments do not take cash.

Not all good being in a cashless society.

[–] [email protected] 6 points 1 year ago* (last edited 1 year ago)

Hey that's convenient! You can save 50% of your impulse shopping by just not being able to purchase anything.

I don't know about the swedish economic system, but some systems allow prepaid debit cards kind of like gift cards but tied to a single person to be used. And that would kind of act like cash, load $100 on to it or whatever, and then when you burn through it you have to be deliberate about adding more money to it. Transactions declined is better than spending over.

Instead of looking ar it as an inconvenience, roleplay Jason Bourne, you're hiding from the government surveillance state, how far can you go without tying your identity to purchases. It's a fun game

[–] [email protected] 2 points 1 year ago

Yeah, I think I remember reading that when paying cash the areas of the brain that register pain are activated in ways that paying with ‘convenient’ methods don’t.

Personally, I pay via credit card, and pay that off weekly—so I’m never caught off guard with how much I owe. Probably not the greatest thing in the world regarding a credit score, but it keeps me on top of my finances.