The Anti-Budget, aka: the Budget for People Who Hate Budgets
No matter the level of financial education you’ve received thus far - whether that’s from elementary school, your parents, the internet or a degree in finance - there’s probably a topic that constantly pops up, and yet remains one few truly know how to handle with grace, understanding and flexibility.
Budgeting.
Ever dreaded, and yet one of the “necessary evils” of being an adult, trying to do adult things and ✨ live in a society. ✨ And honestly? Budgeting sucks.
Unless… you don’t budget.
Like… at all.
Like… ever.
Okay, okay, not true, we’re getting ahead of ourselves here. Budgeting remains one of the most vital tools and techniques when it comes to managing your personal and business finances. That’s why it’s still a constant topic of conversation and remains on literally every finance curriculum out there in the world, despite the controversies and opinions surrounding it. But this cool concept called Anti-Budget kind of ticks all of the boxes you need in order to:
Become financially aware and empowered;
Meet savings and investment goals;
Take care of all of your bills and other financial obligations; and
Treat yo’ damn self.
And the best part? It takes out the tediousness of traditional budgeting. It cuts out number crunching, and it definitely helps to eliminate the scarcity mindset that is rampant throughout conventional money management.
“Too good to be true?” you say? Let’s find out.
What is the Anti-Budget?
The Anti-Budget was created by Paula Pant of Afford Anything in 2013 as a way to simplify traditional budgeting into a way everyone - and we mean everyone - can understand. In her words,
“The purpose of a ‘budget’ is to make sure you’re saving enough. So cut to chase: pull your savings from the top, and whatever is leftover is the amount you can spend. End of story.”
But when we - and Paula - say “savings,” we’re not just thinking about our savings accounts and/or emergency funds. We’re talking about your debt, your investments, college funds, your vacation to Reykjavik… literally any of your personal financial priorities can be met using the Anti-Budget method (if done properly, of course).
So… exactly how does this work?
Basic Anti-Budget Rules
The Anti-Budget operates on a few basic principles:
Pay Yourself First
Pay Your Bills
F*cking Chill About the Rest
… that’s it. Well, obviously, there’s a bit more to it, and a few different ways to personalize and customize the Anti-Budget system to suit your specific needs, habits and financial situation. But basically? The Anti-Budget focuses on what you need to ✨ live in a society, ✨ first and foremost, and leaves everything else up to you. No categorizing, no itemizing, no restrictions, nada.
So, How Do I Start?
1. Know Your Expenses and Know Your Debts
This - obviously - varies from individual to individual. We don’t know your finances. We don’t know your goals or priorities. We don’t know your life. Everyone has their own financial and personal obligations and goals that determine where they focus their energy. Sit down, write all of your necessary expenses (rent, utilities, cell phone bills, insurance, etc.), write down all of your debts (student loans, etc.), and write down other financial obligations or priorities (your 401(k), your investments, etc…). This is essentially an exercise in determining your financial hierarchy of need (which could be an entire series of books unto themselves, but we are starting small, okur?)
2. Automate, Automate, Automate
So, now you’ve figured out the big financial responsibilities you have to ✨ live in a society. ✨ What exactly do you do with that information? Simple - automation. There are obviously situations where automation isn’t possible (we’re sure some of y’all have had those landlords who only accept checks, for example) but there are plenty of options for automatic payments towards cell phone bills, utilities, mortgage payments, rent, your retirement accounts. And what’s also excellent about automation is how customizable it can be. Depending on when you get paid throughout the month (or when you pay yourself), the idea of dropping all of that necessary expenditure in one go could be pretty devastating - that’s why you can pick your payment dates to spread your obligations out! Seriously. Even if it’s not “technically” offered in your Terms of Service, giving the provider a call and more likely than not, they’ll set you up.
3. Be Flexible
When first starting out on your Anti-Budget journey - or any budgeting journey, for that matter - you’re most likely going to be unable to start hitting all of your big goals immediately. That’s why you should be willing to be flexible. Maybe you’re a small business owner and the money isn’t flowing as easily as in earlier months. Perhaps you’ve moved cities and/or changed jobs. Or maybe you’ve encountered some health difficulties and have medical bills to pay (yayyy America). That’s when you take a look at your financial hierarchy of needs, and lower/delay some of your savings goals until things become more manageable and financially stable.
Remember our Favorite Flight Attendant Saying: before you put the oxygen mask on the passenger next to you, put it on yourself. Similarly, if you’re in survival mode, focus on building back up your financial foundation before going after anything else.
4. Focus on the Big Picture
The Anti-Budget isn’t about the little sh*t. It isn’t about writing down every little thing you purchase at any given moment. Honestly, it’s super stressful, very tedious and can - frankly - be pretty triggering when you’re working through any previous financial trauma you’ve encountered, or you’re battling your scarcity mindset. Sometimes you just wanna snag an unplanned jar of Crunchy Cookie Butter from Trader Joe’s on your way out, ya know? Should that ruin your carefully crafted financial plans? No.
Any Tips for Anti-Budget Success?
Again, a lot of this has to do with your own personal needs and customization desires. But here are a few little tips we think will help get you on the right path to crafting an Anti-Budget strategy that works for you and your lifestyle.
Set up balance alerts. This is always helpful for any financial situation, and is something we highly recommend when starting your Anti-Budget journey.
Check your accounts. Yes, we know we’ve said about the Anti-Budget being pretty hands-off, and “F*cking Chill About the Rest,” but when you’re crafting your Anti-Budget strategy, it’s always a good idea to make sure that you didn’t overshoot (or undershoot) the mark.
Start small. It’s recommended to save anywhere between 20-50% of your income per month. If that seems like a lot? It definitely can be. So, if you’re a little worried about making that kind of commitment right away, start with 1%. Do that for a month, and grow from there.
Plan the year ahead. If you know how much your mortgage payments are, or the maximum yearly contribution for your new Roth IRA? Plan for it! Make it a priority, by knowing the details.
Why Does TFCFO Love It?
We’ve said it above, and we’ll say it again, but the Anti-Budget is just… easy. It’s straightforward. It’s a budget that can ultimately suit the needs of anyone who employs it within their day-to-day life, regardless of their financial knowledge, experience or situation. And something we really love about it? It takes shame out of the game. We really mean it when we say that whatever money is leftover after you’ve fulfilled your financial obligations is for you to do whatever the f*ck you want with.
“✨ Living in a society ✨ is already hard enough without worrying whether or not you can buy that plant, or get your nails done, or enjoy a night out. Everything that you need to take care of? It’s already getting taken care of, so what is there to worry about? What is there to be ashamed of?”
Literally. Nothing.
You’ve heard of budgeting before, but it doesn’t have to be this dreaded, “necessary evil” that’s meant to shame, restrict and deny. It can become one of the primary tools guiding you to financial security and freedom.
“Too good to be true?” you say? Nah. We don’t think so. 😉
You can learn more about the Anti-Budget from the Confident Money Podcast, hosted by our very own Katelyn Magnuson! The entire second season is dedicated to all things personal finance, with S02E16, “Mastering the Anti-Budget” diving even deeper into what makes this financial strategy one of the best weapons in your “Making-Money-My-B*tch” arsenal. Slam that subscribe button, Your Majesties!
Disclaimer: The information provided in this blog is for educational purposes only and does not constitute financial or tax advice. Reach out to The Freelance CFO team with any questions regarding specific financial concerns, or seek the services of a fiduciary.
