BAM! That’s how it’s done, son!

We only started having a budget last March. Our net worth has skyrocketed. We feel like we have a plan for buying a house in the next few years, and without our budget, we wouldn’t be able to handle it.

I sum it up with this quick story: Friends got married last year. We budgeted over the 4 months coming up to the wedding. Drove out, had a blast, and on the Sunday after a friend said “Man, this was fun but I can’t believe how much money I spent. I’m going to have to shuffle some money around so I can pay some bills….” My wife and I were shocked. We didn’t even think about how much we had spent. Checked the budget when we got home and saw that we actually were $150 under budget! BAM!

I imagine that its as simple as:
“Those who budget are at least trying to pay attention to their financial health, and are therefore more likely to tailor the outcome in their favor.”

If you are not paying attention, it will all slip through your fingers.

You’re a smart man.

Thank you!! That means a lot :)

Yeah, I think everyone budgets to a degree – even if it’s in their head and it’s rudimentary. My guess is that Mr. MMM knows he makes well over what he needs in any given month – especially with the awesome success of this blog – so that he doesn’t need to concern himself much with cash flow. He knows more is coming in than going out because he’s a jedi master at keeping his expenses crazy low. (I don’t know who or what jedi is actually, but hopefully I used him/it right in that thought ;)).

Her clothes will just fly off – enjoy!