If you’ve tried different budgeting strategies over the years only to find that they take too much work, or don’t actually help you learn how to spend less money in the long run, the anti-budget may be right for you. This unique budgeting approach is perfect for those who are serious about their financial goals, but have had trouble sticking to a budget in the past.
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What Is the Anti-Budget Budget?
Also called the “No Budget” budget, the anti-budget is fairly self-explanatory just by reading its name. This model differs from the more structured budgets we’ve highlighted because it’s more intuitive and far less prescriptive. With an anti-budget, you simply try to save as much as you can each month and avoid spending money that you don’t have.
However, just because there are no “rules” to follow, doesn’t mean it’s not effective. For instance, you may choose to save a certain dollar amount each month when you get paid, and just live off what’s left until the next payday. Then, you’ll start the process over again as you informally monitor your spending.
Advantages of the Anti-Budget Budget
- There are no rules so you’re free to customize your saving and spending amounts however you like.
- It’s one of the easiest types of personal budgets to implement and stick with.
Disadvantages of the Anti-Budget Budget
- Highly unstructured, so those who need more support may not do well with it.
- Not good for individuals who are already struggling to reign in their spending.
Who Is ‘No-Budgeting' Best For?
This kind of budget is ideal for someone who doesn’t want a lot of fuss when they’re budgeting each month (which is ideal, because there are no rules with an anti-budget). It’s also best for people who are already fairly well-disciplined with their spending habits and can keep track of their finances on their own.
Anti-Budget Budget Example
With an anti-budget, you’ll look at how much you make each month and decide from this how much to save. It’s really that easy, but let’s look at some numbers.
Suppose you make $3,000 a month in take-home pay and you want to start saving $500 of that. How you save doesn’t matter – you may wish to automate a $500 transfer at the beginning of each month, take out two withdrawals of $250 a month if you receive bi-monthly paychecks, or manually transfer the money into a separate savings account.
Monthly Income and Savings Examples
| Monthly Income | Initial Savings Amount | Remaining Amount for Expenses |
|---|---|---|
| $2,500 | $300 | $2,200 |
| $3,000 | $500 | $2,500 |
| $3,500 | $700 | $2,800 |
| $4,000 | $800 | $3,200 |
| $5,000 | $1,000 | $4,000 |
After you take out the $500, you’ll now have $2,500 each month to meet all of your expenses including any non-essential spending like entertainment, dining out, or travel. After that, it’s on you to make sure that $2,500 lasts as long as it needs to.
How Does the Anti-Budget Budget Compare?
| Type of Personal Budget | Description |
|---|---|
| Traditional Budget | Subtracts monthly expenses from income, ideal for beginners. |
| 50/30/20 Budget | Divides income into 50% for needs, 30% for wants, and 20% for savings/debt. |
| Zero-Based Budget | Allocates every dollar of income to specific categories until it equals zero. |
| Goal-Based Budget | Focuses on specific financial goals with some flexibility. |
| Spending Cap Budget | Sets a maximum cap on monthly spending to encourage savings. |
| Envelope System Budget | Uses physical cash in envelopes for different spending categories. |
| Pay Yourself First Budget | Prioritizes savings by setting aside money for savings first. |
| Sub-Savings Accounts Budget | Creates detailed savings goals within a primary savings account. |
| Anti-Budget Budget | A relaxed approach: save first, pay bills, and spend the rest freely. |
Does the Anti-Budget Budget Really Work?
The right budget will work for the right person, and for many people, an anti-budget is the perfect transition into the world of budgeting. Since it’s flexible and non-formulaic, those who may be averse to a strict approach will find a lot of freedom to both save money and have freedom with the rest of their spending.
However, if you already struggle with saving money or impulsive buying, the anti-budget may not be the best option for you. But, if a more casual approach fits in with your lifestyle, then an anti-budget can be the perfect choice.
Can I use an app with an anti-budget?
Since there are no real guidelines with an anti-budget, you can use any app if you feel it will help with your personal finance goals. That said, there’s one app that seems specifically tailored to the anti-budgeter you may want to check out. The Oops app caters to the Gen Z crowd and is marketed as an easy way to track finances. Users simply link their bank account to the app and whenever they see a careless transaction they can flag it as an “oops.” This way, you start informally tracking your spending habits and seeing areas where you could make changes.
How can I most effectively use an anti-budget?
Almost any budget can benefit from automation and the anti-budget is no different. Once you decide on an amount you want to save each month, set up an automatic transfer that either goes into a savings account, another investment account, or towards debt.
I don’t think I make enough money. Can I still do the anti-budget?
With any budget, starting small is often the best strategy to ensure the routine will last. Even if you only put away 1% of your monthly income, that's still something! So if you make $3,000 a month you’d start by saving only $30. Do this for a month or two and then increase it up to 2% so you’re putting away $60. Keep slowly increasing by one percent every month or two and before you know it you’ll be saving up real money.
