1953: [Part 1] Pay Yourself Last: Why You Don’t Need A Budget by Steven Keys
Optimal Finance Daily - Financial Independence and Money Advice
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Why You Don't Need a Budget
If you budget 35 hundred dollars for your vacation, guess how much you're going to spend while you're away? At least 35 hundred dollars, regardless of whether you really need to. Once money is designated for a specific purpose, people have a psychological tendency to spend it all no matter what. In reality, money is fungable. You don't have to spend money on yor vacation just because it was in a savings account labelled vacation savings. If you can take a great trip for less than you planned, the rest of that money can be kept, freeing you from mandatory work sooner.
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