Trying Not to Spend

My cousin (who is a lot smarter than me) once told me that she used to think she would not have to budget as long as she didn't spend very much. She had since discovered that a budget was a necessity.

It took me a few years to figure out she was right.

Why doesn't the try-not-to-spend-too-much method work? I think there are a couple of reasons. First, without a budget we have no reason to prioritize. It is easier for us to justify purchases as something we need or deserve, and we have nothing to curtail us but a vague sense that we have spent too much. Second, we forget. I never feel like I have spent much, but the record we keep of our expenses tells me otherwise. It's a good reminder to count the extras I have and be grateful.