Lazy Budgeting: Planning $500+ Purchases Ahead of Time
Posted by Cap in Personal Finance |Not to brag or anything, but my discretionary income is rather healthy. How so? Well, the main reason is because I live (and look) like a bum. Hah. But regardless of how stable my financial life is, I always plan any purchases over $500 ahead of time.
Calling it “lazy budgeting” is sort of misleading, as I don’t really budget — the entire act is more of a reminder for myself. For example, for the month of November (or whenever), if I’ll be spending an extra X amount on so and so… I make a mental note or jot the dollar amount and the planned purchase date on a sticky note, notepad, or a text document on my desktop.
Holiday gift for the family? Mental note. Jewelry for the mistress? Sticky note. Monthly payment to the loan shark? Sharpie-written note on forearm.
What are some of the benefits of making a note on these purchases?
- No surprises when the bill comes the following months.
- Know exactly how much I need to transfer to checking to cover expenses.
- No freak-outs when credit card company calls to verify large purchases.
- Accountability: can’t pretend I didn’t spent the money.
If you’re lazy and you don’t budget like me, you should at the very least consider making a mental or visual note whenever you have a large upcoming expense. A visual cue to the actual spending can actually be pretty powerful, as I’ve found myself at times changing my mind on a large purchase simply because I got sick of staring at the sticky note on top of the monitor.
“Birthday present for sister? Pff. Forget it.” *tears off sticky note*
Teehee.
9 Comments to “Lazy Budgeting: Planning $500+ Purchases Ahead of Time”
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January 28th, 2009 at 9:35 pm
Hi. Love reading your site; I’m in the process of catching up on all of it. I’ve added you to my blogroll. And…I don’t buy birthday presents for my sister, either.
January 28th, 2009 at 10:02 pm
Yes Cap. You are the ugliest bum I’ve never seen. ;-)
January 29th, 2009 at 9:57 am
Great post really interesting. It is so true how many people have debts just because of buying things they don’t need. I think i am gonna do a post on how people buy certain things that are not needed and their reasons for buying them. Thank you.
February 2nd, 2009 at 12:46 am
Hey, there is nothing wrong with living like a bum. The majority of people in the mid-west do it and look how happy they are. Even if you earn a decent income living like a bum can save you heaps of money. Just make sure you have basic hygiene on your side.
February 13th, 2009 at 8:40 am
Agreed, simply paying attention is more than half the battle… I’m a budget nerd so I tend to obsess over my spreadsheets but with a little automation I’m about to run our household opps budget in about 30 mins per month…
February 21st, 2009 at 9:06 pm
Lazy budgeting – hey I do that!
Just having the figure you intend to spend in mind makes a HUGE difference.
February 24th, 2009 at 4:49 pm
Great ideas – have been using a similar system for almost a year. Feels great to pay cash for big purchases and not worry about paying the bill later that month.
February 26th, 2009 at 2:02 pm
Anything to eliminate bills is great. One way I found is to use a prepaid phone.
I already eliminated my land line and got out of my contract when the company changed it’s terms. (Did you know that if they do that, it voids the contract? They don’t tell you that, but I saw it on the Consumerist site and it worked! No termination fee too. Haha.)
Anyway, I got a prepaid Net10 phone and everything is 10 cent a minute even International calls which is great since my son is traveling right now.
But the best thing about this is that there aren’t any bills and I know what my costs are because I pay upfront for my calls. It’s great!
So yes, lazy budgeting is a fine idea, but this is too since it requires a bit of thought before the fact and controls costs.
January 24th, 2010 at 2:54 pm
Agreed. Prepaid rocks.
I have Straight Talk on the Verizon network. Bought it at Walmart and it’s an amazing deal. The Samsung Finesse is a very cool smartphone and paying only $45 a month for unlimited everything is the best deal going!
Who needs an iPhone? LOL!