Do you always need a budget? Most financial experts tend to agree that a budget is the best way to manage your money and reach financial goals.
Others, however, take issue with conventional budgeting. Dana Miranda, personal finance journalist and author of “You Don’t Need a Budget,” has made the argument that budget culture is akin to diet culture as it rewards those with enough willpower to stick to spending restrictions.
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Ultimately, whether you need a budget or not depends on your own unique financial circumstances, but it’s possible you might not need it. GOBankingRates developed a short quiz consisting of six questions with yes or no answers provided in the A and B columns. Tally up your answers and see whether you really need a budget.
1. Are You Paying Yourself First? (i.e. Automating Money Into Savings)
A) Yes
B) No
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2. Do You Have a Stable Income?
A) Yes
B) No
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3. Do You Live Below Your Means?
A) Yes
B) No
4. Do You Embrace Frugal Habits To Save Money?
A) Yes
B) No
5. Would You Apply For a Better Paying Job or Work a Side Hustle, If You Needed More Money?
A) Yes
B) No
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6. Are You Worried About Money?
A) No
B) Yes
Your Results
If you picked mostly A’s … You don’t necessarily need a budget. However, this doesn’t mean you shouldn’t have a plan for your finances. Be aware of the money you have coming in and going out every month and what’s available to spend. If you receive a raise or bonus, don’t spend it on something expensive or impulsive. Instead, consider increasing the automated amount going toward your savings or retirement accounts by a certain percentage.
If you picked mostly B’s … You could use some help tracking your spending habits. If you want to test out a budget, check out our step-by-step guide for setting up a budget. For those who would rather not traditionally budget, now’s the time to explore the method of paying yourself first to reach your financial goals.
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This article originally appeared on GOBankingRates.com: You Don’t Need a Budget If You Pass This Quiz
