When I needed a budgeting framework that is easy to apply and does not constrain me within a budget I used Arkad’s rules. This worked really well for two reasons. One, I could automate the negative wealth repayment and get on with my life instead of obsessing over it all the time. As a result my quality of life improved, my work improved and my work results improved. This will soon pay off, I believe, in career and financial terms. Two, we built an emergency fund and started building savings/investments. This made me feel less fearful about the future and, let us face it, less vulnerable to any adverse future developments. So, Arkad’s budgeting was good for quite some time.
Several months ago I noticed that we spend hardly anything on fun and on ourselves. This wasn’t because there was nothing left to spend but because of the way in which we budgeted: fun was not in our budgeting frame. Having realised this, and the detrimental effects it has on family life and individual feeling of worth, I started playing around with the budgeting frame. After all this is one of the advantages of budgeting: if it doesn’t work you look at it and re-work it rather than feeling as a complete failure.