Why You May Want to Go Without a Budget in 2023

You're not doomed to financial failure if you ditch your budget this year.

The start of a new year is a great time to form positive financial habits. And that's why people are often advised to set up a budget and start following one, or to update an existing budget and give it a refresh.

That's certainly not bad advice. But it may not work for you. And if you decide to ditch your budget in 2023, you're not necessarily resigning yourself to financial ruin.

Why budgeting doesn't always work

The concept of a budget is simple. Figure out what you spend money on each month and how much you spend, and then compare your total spending to your take-home pay. If those numbers don't seem to play nice with each other, it's a sign that you should cut your spending or eliminate certain expense categories.

But there are several problems with budgeting you might encounter. For one thing, it can be time-consuming, and also, let's face it -- a little boring.

Plus, it's not as if budgeting is a one-time thing you do. Rather, you're supposed to set up a budget but then check in every month to make sure you're following it. That can get cumbersome.

Another issue with budgeting? Sometimes, bills can fluctuate, and that can be hard to account for. Many consumers, for example, saw their food costs rise in 2022 as inflation reared its ugly head.

So, let's say you've budgeted $500 a month for food, only due to a factor outside your control, like inflation, that isn't enough to fully feed your family. Should you feel bad about going over budget? That would be a firm "no." You need to eat, and sometimes, all of the coupon-clipping in the world won't be enough to bring your food costs down.

Also, budgeting can feel like you're backed into a wall. Say you have $100 a month budgeted for entertainment but you really want to see a concert that will cost you $120 for a pair of tickets. Suddenly, you have to scramble to free up $20 from another expense category. That can add an element of stress to your plate -- and make you feel like you shouldn't treat yourself to a show you'll really enjoy.

That's why budgeting isn't the right solution for everyone. And if you've tried it before and failed at it, you may want to try a different tactic in 2023.

Automate your savings instead

The main purpose of a budget is to give you a sense of where your money goes so you can meet your financial goals. But it may be possible to do that with having to refer to a spreadsheet all the time.

Let's say your goal is to add $6,000 to your savings account in 2023. If you arrange for $500 to leave your checking account at the start of each month and land in your savings account automatically, you can meet that goal. And if you can do so while managing to cover your remaining expenses (essential and otherwise) without racking up debt, then maybe you don't need to stress over the smaller details of a budget, and maybe you don't have to grapple with feelings of guilt because you spent $542 on groceries one month instead of the $500 you were hoping to spend.

Budgeting should improve your financial picture. But it's not your only option for doing so. And if it just doesn't work for you, there are other routes you can take to work toward your financial goals and objectives.