Are you tired of budgeting?

Have you tried preparing your personal budget but cannot really stick to it? Are you like my accountant friend who keeps a budget but also have these unfavorable variances every month-end (meaning, she spent more than what she should)? Are you discouraged to maintain a budget anymore?

You are not alone!

Budgeting is a daunting task. Personally, I admit that budgeting does not work for me, at least at a certain extent.

Don’t get me wrong. Budgeting is wise and it is a must especially for huge companies. That’s the reason why businesses hire brilliant accountants and financial managers to do this for them. Nevertheless, when this is applied in the personal level, a number of times as I observed, it does not work in hitting the goal.

Accountant as I am, I tried having a detailed budget before but then I found myself not really following it. Well, I had this thinking that I am always within the budget but why is it that I am not hitting my target savings and investments at the end of the year?

Then came this realization: budgeting is just a tool, not the end goal. Hence, if the tool does not work for you, change it. With another tool, you can achieve your goal.

Focus on your financial goal, not on your budget.

If that detailed budget does not really work for you, try this alternative. It works for me. It may work for you, too.

The Basket System

I learned this from my mentor Bo Sanchez. Being a member of the Truly Rich Club, aside from from the stock updates and wealth strategies that I receive, I also get to have copies of Bo’s powerful financial talks. In one occasion, he shared about the basket system as an alternative to budgeting.

Very simple.

Use the 10-20-70 rule.

These represent percentages of your income.

10% for your tithe.
20% for your savings and investment.
70% for your living expenses.

That’s it!

(I reserve the discussion on the 10% tithe in another article.)

For the 20%, use this to fund your intended savings and investments. Start accumulating your emergency fund and start financing a stock market investment portfolio. Once you grow this, you can also use this to launch a business of your own or with your partner.

The remaining 70%, use it all for your day-to-day expenses. Use it for your meals, rent, transportation, and utilities. Use a little portion of it for movies, entertainment, or your little dreams – like that shiny shoes you saw at the store.

Prepare for the future and enjoy the present. The 10 & 20%. Then 70%.

For this to work, you have to set aside the 20% first.



Savings and investment should come first before expenses.

To do this, here’s a suggestion:

If you are a salaried individual like me, aside from your payroll account, open another account in the same bank. Now everytime you receive your payroll, before withdrawing cash for your expenses, transfer the 20% to your other account, a part of it, you may send to your account with your stock broker. Apply for internet banking to make this even faster and convenient. Do it online so that going to the bank at the end of the corner and the long lines won’t be your complaint.

The remaining 70% on your payroll account, spent it as you wish. Of course, prioritize your meals, transportation, rent and utilities before movies, entertainment, and ‘good’ gimmicks.

Yes, prepare for the future with your 10% and 20%; and enjoy the present with your 70%.

Try it out. This tool works for me. It may work for you, too.

I pray that you and I will hit our financial goal.

Make your way to prosper.

Live your life, young mind!

Chris Dao-anis


If you want to know more about the Truly Rich Club, click this link

Read also the 7 jar funds, Fix Your Financial System.

Learn to start investing in the stock market, Seven Simple Steps to Succeed in Stocks

Published by Chris Dao-anis

I help Filipino coaches, trainers & speakers deliver impactful presentations and write books to further reach and credibility.

4 thoughts on “Are you tired of budgeting?

  1. For my 70% expenses, you can notice that the Food, Fare and Miscellaneous are formatted to be aligned to the right portion.It lets me identify that I am budgeting for my Allowance Expense but it is broken down to three items: Food, Fare and Miscellaneous. I put miscellaneous under allowance in case I have “unexpected” expenditures (team lunch out, food trips with food and travel bloggers Metro Street Bites and Geejay Travel Log , and sudden meetups with friends). 2. Divide your Cash and Label. It will help if you don’t put all your cash in your atm because it becomes easy for you to withdraw cash anytime. Leave only the amount you will use for your allowance and withdraw all the amount that you will use to pay for rent, utilities, credit cards, tithes and investments. This helps you avoid spending the money intended for your other expenditures. For my stock investment, I immediately transfer it through online banking and deposit it to my COL Financial (previously known as Citiseconline) account to ensure that I follow my 20% budget for stocks and investments. Know more about stock investment for newbies here. Divide your cash, label them and put them in an envelope (or anywhere safe from your easily tempted hands).

    1. Great input, Daisy.

      Yes, you have to prevent yourself from being tempted so you can stick to your financial plan. Stay disciplined to achieve your financial goals.


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