Why I DON’T Budget (and what I do instead)

[@hellocatwalkcity]

This was a requested video and I hope it will be helpful, or at the very least, thought-provoking as you consider your own money management system. Please leave me a comment down below. I’d love to hear what works for you!

[@ThePaperExhibition]

Omg. This is a beautiful video. It’s crazy because I decided a couple of months ago that I was no longer going to budget because it makes me feel so awful all the time. I let myself free. Ever since, money is flowing in and out effortlessly, I feel so good about money, I can trust myself with it, and I feel wealthy. Letting go of a budget allowed the energy of money in.

[@hellocatwalkcity]

How wonderful!! Thank you for sharing this with us! Enjoy the freedom and feel empowered!

[@ThunderVelvet]

Omg! This is the answer I’ve been looking for! Everytime I told myself I need to budget/not spend this month, I will go splurge everything on the next day. It makes me feel so mad & disappointed with myself. I shud learn to be disciplined and balanced instead ❤

[@hellocatwalkcity]

Aww good luck!! You’ll find your balance!

[@ameliarosescloset]

i really enjoy these videos, we don't do everything exactly the same but i feel we have alot of the same mindsets behind finances, i have however gone back to a budget recently as my spending was high and i find a budget helps me to back on track and refocus on my financial goals

[@AlexisBii]

Thank you so much for making this video!! I haven’t finished it yet but plan on sending it to my friend group after I do - I love the handbag content, but I REALLY love the mindset/finance content! 💕

[@hellocatwalkcity]

You’re so welcome! You’re the reason why I filmed this video! It was your request Alexis! I’m so glad you’ll be sharing it with friends. I hope it’s helpful. xx

[@rosemaryarnoldYT]

Interesting to hear and thank you for sharing. This system wouldn't work for me. I find that having a budget DOES helps me cultivate an abundant mindset and disciplines myself to prepare for the future. I think another tool is learning how to make MORE money which is not as widely taught as being really frugal.

[@hellocatwalkcity]

I love that!! If budgeting makes your feel abundant and disciplined, then keep at it!! I think that’s great. We all have a system that works best for us. As for making more money, my previous video (right before this one) may interest you. I share my 10 sources of income as well as previous side hustles I had to make extra money. Hope you’ll enjoy it and thanks for commenting here! xx

[@missevi6642]

Thank you for making this video, I thought I was the only one that felt this way and always felt restricted. Btw your hair is gorgeous ❤

[@sparklebydle]

This is so helpful and more people should see this video. You explained it straight to the point and it was a realistic way of saving money. I've been a sub since you started and I like how you include fun unboxing lux videos and also incorporate financial empowerment series to help and somewhat share your knowledge on how to be more financial savvy to your subscribers. - Nel xx

[@hellocatwalkcity]

Thank you so much! Im glad to hear that the video was helpful. xx

[@AlexisBii]

Loved this!! Something that came to mind is, budgeting really makes life out to be a zero sum game: either you're restricting your spending or you're breaking the budget, with no in between. It makes every non-essential expense seem wrong. IF you have buffer money, that's just not true! Sure, if you restrict further, you may have more dollars in the bank account, but dollars are not the only form of value in life. It really is reminiscent of diet culture. We know that starvation is objectively the fastest way to lose weight, but that's clearly not healthy nor sustainable, and I really wonder if budgeting is genuinely sustainable as a lifestyle - can most people really budget for 20, 30, 50 years? If not, what's the contingency plan? 🤔

[@hellocatwalkcity]

THIS!! 👏 👏 👏 You summed it up so perfectly!! Any system that is zero-sum is bound to be fraught with disappointment and/or guilt!

[@lainelee3632]

Totally love your mindset which is same to mine. One of the most important thing after getting married was as a couple we decided we'll only live on my husband's income (amount that is left over after tax and the IRA/401k equivalent in Singapore). Because of that I could in the past chose to be stay at home mum without stress when the kids were younger. I'm now working almost full time and can put aside over 50% of my monthly income on savings/investments. The rest is free for us to enjoy as we please, without any guilt. We've always lived way below our means. We don't buy too much house, that's often the biggest cost of living.

[@hellocatwalkcity]

Wow!! I love this!!

[@MarwahAbdelaal]

Nice! I’ve been following a pretty similar method since 2020! I’m still learning and improving .. Thanks for sharing 😊

[@hellocatwalkcity]

We’re all still learning and improving - never ends! 😉

[@kaitlinbeste]

I love this! I think the comparison is helpful. And also for me personally for both Baby steps is better even if I backslide I don't beat myself up anymore

[@hellocatwalkcity]

Absolutely! No sense in making ourselves feel bad or guilty. We will all trip up once in a while and this method allows for a lot more freedom and flexibility. So glad you enjoyed the video!

[@Jessiestyle]

This was super helpful!! I think this way of saving seems not as overwhelming and is sustainable long term! 🌷

[@hellocatwalkcity]

I’m so glad you think so Jessie! Thanks for stopping by! 😉

[@Jessiestyle]

@@hellocatwalkcity 🥰🥰🥰

[@kmartin1550]

I totally agree with and appreciate your outlook and guidance!

[@hairbysaskia]

This makes so much sense.. actually going to put this method to work

[@hellocatwalkcity]

I’m so glad it makes sense to you too!

[@LittleImpaler]

You do realize this is budgeting. Don't burn a hoke in your pocket and always put money aside for a raining day.

[@AdeleP-co2hg]

I went and searched for your video on this topic after watching your most recent one. I agree with you whole heartedly. I have this save x% if not more each month mantra. It’s easy once I gotten used to it. I don’t budget as well. But I always am very careful on what I spent. There are months when I save more than my target % but there are times, not often that I would buy something that I want… what I’m bad at though is I don’t budget on what I eat! 😅😅

[@hellocatwalkcity]

I’m so glad you found this video and can relate to it! I’m actually planning another video soon about saving % rates and the impact it has on how long we work… it’ll be interesting!

[@kimhoang9635]

Thanks Hanna for doing these types of videos occasionally. It’s healthy to think healthy financially. For me IRAs are a must and savings is always a goal. During the pandemic I super splurge big time luxury handbags. Not I hv quite enough and I’m missing the financial savings. Agreed that at the end of the day it’s all about a healthy balance. TFS. Big hugs fr San Francisco Bay Area ❤

[@hellocatwalkcity]

Absolutely! I think many of us spent more on goodies during the past few years so you’re not alone. Now may be a great time to pause and evaluate! Thanks for watching!

[@activerewriting]

Excellent video. I like that you call budgeting and dieting “deprivation tools”… and don’t use positive words for the two because these things are actually not sustainable. This is actually a really underrated idea but one that can serve us very well in life.

[@AlexisBii]

Agree!!

[@lv_lover3393]

Thanks for sharing I do similar to this all expenses first then savings which for me can change each week as I’m self employed, also I have a separate vacation savings. What’s left is separate savings for mainly bags and luxuries (I’m planning on staying on ban island for a while as I’m on 20 bags and I want to enjoy what I have) so I will up my savings a little while still putting money aside because spending again will come 🤦🏼‍♀️ my friends in real life say I couldn’t justify spending that much on a bag it could go into savings or a vacation but I already have separate funds for that ! I feel I’m constantly explaining myself. ❤

[@hellocatwalkcity]

Sounds like you have a clear system that’s working well for you! 👏 I love that you’re pausing to enjoy the bags you already have! ❤️

[@jamelsydney2737]

Loving your balance and moderation mindset videos, these concepts really resonate with me. Can you share what percentage of your salary goes toward your savings account? I’ve heard people put as much as 30% as direct debit to their savings but that seems quite a lot to me.

[@hellocatwalkcity]

I’m so glad the videos are resonating with you! At the moment, I have approximately 37% of my income going into savings, but that includes everything from 401k to IRA to brokerage accounts for investing to liquid savings / emergency account. That last bit is about 18%. We reside in a high cost of living area (NYC) so saving an ample amount is important for us as we’d like the option to retire here if we want to, without having to move. Hope this helps!

[@ashleyhernandez1539]

Really helpful and honest, thank you!

[@taniasarah5616]

Thank you for this content. It is very thought provoking. I have not ever tried this method as I love my current budget style (which some may think is a bit elaborate and labour intensive but I really enjoy it), however I always do an end of year review and am always open to tinkering. I'll be taking a few gems away from this video!!! Appreciated xx

[@hellocatwalkcity]

Oh thank you so much for this comment! It’s great to know that you’re using the budgeting method and most importantly, enjoying it! It’s funny, I completely understand when you say that it may be “a bit elaborate and labour intensive” because I have certain habits and systems that I rely on that feel this way too but I thoroughly enjoy it in my own way. 😂 As long as it’s working for you, more power to you! And thanks for being open to my pov as well.

[@jennifershin543]

Thank you for this video🙏🏻❤️ I’m also loving the comments and getting more ideas. Love this community🤩

[@allofnews41]

Please continue !!❤

[@hellocatwalkcity]

❤❤❤

[@lovepchan]

Have you done videos on time management? If not, please do one.

[@hellocatwalkcity]

I will give this some thought!

[@vffashionista7429]

Excellent video - thank you for sharing.

[@vffashionista7429]

KZbinrs are called influencers. As such, there should b more KZbinrs like you. Really - thank you again!

[@YosheaLux]

Thus was a great video! I love ❤️ the examples. Love the color of your hair

[@hellocatwalkcity]

Thank you so much!

[@dtropea2063]

Thank you! Your video made so much sense!

[@hellocatwalkcity]

I’m so glad it made sense!!! xx

[@angelinechua4171]

I agree with you . I always tell my 2 kids to save , save and save while they’re young . When i was still working i max my contribution on my 403 B. I retired early and now enjoying my retirement . Just lucky my husband is a good provider

[@hellocatwalkcity]

Good for you!!! I’m sure your kids will thank you in the future.

[@ΙΩΑΝΝΗΣ-ΠΑΥΛΟΣΚΩΝΣΤΑΝΤΑΚΑΤΟΣ]

budgeting is what you want it to be. You can chose i want to budget 3000 for fun this month one month that you want to have a lot of fun. That is budgeting, planning what you will spend before you spend it, it does not mean you even save money, you could even go to debt and budget, the difference is you plan on what you will spend before. most people will try to save though. Also a budget is something you do each month so you can have an algorithm that you save a percentage of your income saved if you want. Finaly you can save money for big purchase in your budget on a Big purchase fund. *Not saying you should or should not budget, i am saying what you describe is not mutually exclusive with budgeting.

[@mandyschneider80]

I do something similar every time I get paid. It’s the 50/30/20 rule. 50% Needs, 30% Wants and 20% Savings.

[@lolipena8051]

I need to start doing the percentage for my savings versus a set amount. I can see the “damage” (more bags) it’s causing lol

[@jenniferw8963]

I put the "buffer money" in savigns and weigh the pros and cons of discretionary expenses each and every time :) Each month I literally pay all my bills and purchase necesseties and put every remaining penny into federal money market -- save a few hundred in checking as a small buffer. Then when I want to do something discretionary I pull from savings.. it makes me think more about the worth of the discretionary expense because it is depleting savings.

[@hellocatwalkcity]

You and I could sit down and talk for hours! 😊

[@jenniferw8963]

@@hellocatwalkcity :)

[@lolipena8051]

Question what percentage would you recommend for your saving categories.

[@hellocatwalkcity]

I think that will depend on each person and what your income / expenses / savings goals are. Generally, I max out the tax savings vehicles - so I put in the max for my 401k, IRA, HSA, etc and then I have a separate savings account for emergency/future. All combined, it’s about 38-40% of my income. But as I said in the video, that percentage has fluctuated over the years. There were years when I was younger and I was barely saving 10%. So it’s hard to give a recommendation unless I know your financial specifics. Hope that makes sense!

[@ma.cristinalobigas6783]

Thank you so much for this video ❤

[@hellocatwalkcity]

You’re so welcome!

[@melodiejptony5206]

Love listening to you, thank you for the video again

[@hellocatwalkcity]

Aw thank you!

[@slevin787]

Very well articulated

[@hellocatwalkcity]

Thank you very much

[@joycemechaber5819]

What you are talking about is "paying yourself FIRST". That is what I was always taught and I taught my kids.

[@hellocatwalkcity]

Haha yes!! 👍 That’s exactly what I said in the video! PYF!

[@HeyTammy]

Love this video!! Which bank do you keep your savings at or which high yield bank do you use?

[@hellocatwalkcity]

So glad you enjoyed the video! I’d suggest you check the current rates at Goldman Sachs, Barclays, and CapitalOne!

[@things_i_fancy]

Thanks for the advice! How do you avoid debt? I usually use my buffer money to pay off my credit card but sometimes it’s not enough 😅

[@hellocatwalkcity]

Great question! I actually keep track of my discretionary spending every month. So it’s not a surprise. 😊

[@chanellover2143]

I’m confused because what you do IS a budget. Meaning you prioritise saving, so you’re not just randomly spending your money, and after savings and bills what you have left is fun money, that’s exactly what a budget is :/ unless I misunderstood.

[@hellocatwalkcity]

Yes in a sense, that’s right! I prioritize my savings and use the leftover as desired. However when looking at the true definition of budgeting, many consider it as, “I can spend X amount on food every month, X amount on entertainment, X on gifts, X on self care, X for travel … etc etc.” I don’t do that, is all. I don’t have a set dollar amount for specific categories. It’s like a diet, when people tell themselves they can have only X amount of calories for dinner. I just know myself and I would feel too restricted so I just go about it slightly different.

[@jenniferw8963]

Hey girl, I don't budget either. I save as much as possible and when I buy something discretionary I weight the pros and cons each time, always considering how much value the expense will bring to my life. Realizing it will always cost something: a depletion of savings. That's discretionary.. and I don't see why one would want to budget necesseties as they are relateively fixed and don't chagne. I save about 1/2 my net income each month.

[@DC-sy7td]

Thank you ❤️

[@sabbyg1316]

I love your shirt! Where did you get it?

[@hellocatwalkcity]

Theory!

[@sabbyg1316]

@@hellocatwalkcity it doesn’t seem that they carry that shirt anymore, at least on the website but the designs are beautiful thank you!

[@mariac6759]

Money I don't see, I can't spend so a portion of my paycheck automatically goes to an investment account. Whatever is left over I can spend for monthly expenses plus some fripperies. If I don't have the money for it, I will wait and save until I have enough. Most of the time, I have already lost interest so I spared myself many unnecessary purchases driven by emotions.

[@hellocatwalkcity]

👏 👏 👏

[@deblovesvids9687]

I love your shirt. Where is it from?

[@hellocatwalkcity]

Theory!

[@LittleImpaler]

Budgeting is important. Unless you want to declare bankruptcy. Happen to my aunt twice. Because she doesn't keep track of her money.

[@yulianagonzalez2428]

Hi sweetheart I love your plant 🪴 so pretty I have couple of them I love them so much 1st here

[@hellocatwalkcity]

Aw thank you for noticing my plant babies! 🪴

[@GirlGoneLux]

I loveeee your financial videos & totally agree with your approach!! I especially love sharing & discussing financial literacy with other women. I just filmed a similar video today that’s going up tomorrow - Top Tips on Affording Luxury Items & starting your luxury handbag collection ❤🎉

[@hellocatwalkcity]

Wonderful! That’s a great video idea! I’m sure it will be helpful to many.

[@GirlGoneLux]

@@hellocatwalkcity thank you!! 🥰💕

[@isaaccarnellkingiv2624]

Soooo Basically you have a budget, just not in the traditional since

[@hellocatwalkcity]

Yes essentially it’s just flipped! I start with my savings target first so whatever is left is just extra. It’s just a different mindset! Thanks for stopping by.

[@Mia-sp8jc]

🎯🎯🎯