I'd like to first make it clear that by 'without budgeting', I mean that I do not set specific, hard budgets for my spending. Some people find this really effective, and I have heard of people doing ' cash budgeting ', where each month they take out say £300 in cash and put it in an envelope marked 'Groceries', and only use what is in that envelope. When it's gone, it's gone; you've used up the budget.
This sounds like an interesting method, particularly if you really need to save and don't have any wriggle room in your bank balance. However, I have never tried it, as I find a more relaxed method works fine for me. I sometimes set 'soft' budgets, but they are more like a general guideline, and if I need to spend more than this I don't beat myself up about it. Likewise, if I end up spending less, I don't then feel the temptation to spend that extra £30 I've budgeted for! ...[Continue reading on The Cornish Life]