I have read a number of blogs that swear one cannot save money without a budget. I beg to differ. When we were saving for a down payment for a house, we saved $40,000 in one year while making around $60,000 annually without a budget. (Y was in Iraq so his income was tax-free).
I followed two basic rules to save this much money.
1. We paid ourselves first.
2. We stopped spending when the money was gone.
First of all, when Y's paycheck was deposited, I transferred it all to our savings account. I did it on the day he was paid.
Second of all, I didn't spend any money when it ran out. This required a little bit of planning. If I had to fill up the car weekly and I didn't get paid for two weeks, I had to make sure I had enough money to fill it up next week. I paid the rent and utilities with my pay.
I didn't budget until much later in life and even now I will go months without budgeting. I have budgeted for the last two months more so to track our spending.
It is annoying to me when a blogger insists that you will end up destitute without budgeting. In a way, budgeting is for people with money. It allows us to spend money without any guilt. One will end up destitute if they don't save any money throughout their life but budgeting is not the only way to save money.
What about you? Do you budget? Have you saved money without budgeting?