2 Reasons I'll Never Budget Again

When you read personal finance advice on the internet, you're often told to make and live on a budget. And in some cases, this is good advice -- especially if you're really struggling with your finances or if you're just getting started with money management.

For me, though, I will never budget again -- and there are some very good reasons for that. The reasons I have for not budgeting may apply to many other people as well, and they show why there's more than one way to grow your net worth and ensure you're using your money wisely.

Here's why I've sworn off budgeting for good -- and why you may want to as well.

1. Budgeting often doesn't work very well

Almost no one likes budgeting. Many people simply don't want to sit down and give every dollar a job. And even people with a budget often can't follow it. In fact, more than 8 out of 10 people who have a budget admit to blowing it and overspending.

Even as a financial writer, I've always been bad at following budgets. It's too hard to predict exactly what I'll want to spend on at any given time. And, it's annoying and challenging to constantly feel as if you have to deprive yourself just to stick with a budget. It's like a crash diet that inevitably leads to binge eating.

Since I got tired of making budgets I didn't follow, I tried a different approach instead. I limited my fixed or ongoing costs by not committing to a large mortgage or car payment. I automated my savings so money for my goals automatically transfers to retirement and savings accounts. And now, I just spend the rest of my money guilt free.

This has worked far better than budgeting because I don't have to choose to save -- it just happens automatically. And I don't have to try to juggle numbers, moving my grocery money to my entertainment money if I want to spend extra on concert tickets one month. I just know I can spend the money in my checking account on whatever I want, and I don't have to follow rigid categories.

If you are tired of blowing your budget, try to automate your finances instead. Aim to keep fixed costs below 50% of the income you bring in, try to save around 15% to 20%, and take care of these expenses first. Then, enjoy what you have left.

2. Focusing on limiting spending isn't the best mindset

I also gave up on budgeting for another important reason. Focusing on spending costs creates a scarcity mindset and can be very limiting, since there are only so many spending cuts you can make. Rather than obsessing about whether I'm devoting too much money to store-bought coffee or dining out, I focused on increasing my income instead.

There's no real limit to how much more you can make if you develop your job skills, start a side business or side hustle, or look for other earning opportunities. And if you can increase your income, it becomes a lot easier to effortlessly live within your means -- which is what happened to me.

If you can automate your finances and focus on earning more over time, you shouldn't have to budget ever again, either. If you're tired of trying to live on your limited dollars and feeling stressed about the process, give these techniques a try and see if they work better for you.