Budgeting Tips

Balance vs Equilibrium


Conventional budget management stresses balance. In other words you must make sure you already have a dollar on hand for each dollar you plan to spend. On the other hand, Budulator emphasizes equilibrium. This means you must make sure funds continuously flow into your budget just as fast as they flow out of it. For example if your budget consists of a $50 per week gas line, then your income needs to be $50 per week. If you then include $1000 per year for electricity, then your income needs to be approximately $70 per week ($50 per week for gas plus another $20 per week for electricity). If we then add in another $1000 per year for vacation then your income needs to be approximately $90 per week ($50 for gas, $20 for electricity, and $20 for vacation).

With Budulator the primary objective is to determine the required flow rate for your entire budget, and then make sure your income flow rate matches that amount. With Budulator there is less emphasis on how much money you have on hand right now, and much more emphasis on the flow rate of the budget. The primary goal is to make sure that funds are continuously flowing into your budget at the required flow rate.

Of course there's more to it; but this simple explanation describes the basic principle behind Budulator. Ultimately this method is much more effective than the conventional method. The true benefits will be revealed in future blogs.

The Coin Drop


Budulator's logo contains a hand dropping a coin. This represents our core philosophy - it is better to set aside small amounts of money over longer periods of time, than to purchase by borrowing or using funds allocated for other purposes.


This method has the advantage of buffering your budget; because you always have the option of using the money for something else should the need arise. Purchasing with accumulated cash also makes things less expensive, because it eliminates the finance charges you would normally have to pay with credit purchases. 


Another advantage is that you are less inclined to suffer buyer's remorse (caused by purchasing impulsively), because you have more time to think through purchases and weigh your options long before you commit.

Why Use Budulator

Many of my clients tell me how much they love and appreciate our services; but most of them have a hard time relaying that enthusiasm to others. Clients sometimes tell me that others they refer to Budulator don't understand why anyone would be willing to pay to have their bills paid. 

I plan to use this blog to show the wisdom and prudence in chosing to use our services over other more conventional, but more stressful and time-consuming money management practices.  Budulator clients enjoy quality time spent with their families without the stress of paying bills and dealing with creditors.

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