Budgeting isn’t about restriction. It’s about regaining control, reducing stress, and building a solid foundation so you can make confident decisions about what you want your money to do for you.
We don’t believe you need to live in spreadsheets or track every receipt forever. What matters is that you have a Money Plan and a simple system you’ll actually stick with.
This page introduces our approach and points you to tools that work especially well for people rebuilding after insolvency.
Watch Our Course: How To Make A Money Plan aka Budget
Our short video course walks you through the essentials of money management without turning budgeting into a full‑time job.
In the course, you’ll learn how to:
- Understand where your money is going today (without judgment)
- Decide what you want your money to do for you
- Create a realistic Money Plan (Budget) that balances your income and expenses
- Choose a money management system that fits your personality and lifestyle
The course focuses less on “budgeting rules” and more on managing your money in a way that reduces stress and prevents future debt problems.
👉 If you haven’t already, we strongly recommend watching the course. In the meantime, you can read some material below to give you some background on good budgeting techniques.
Types of Budgeting (There Is No One Right Way)
Different people manage money differently. The best budget is the one you’ll actually use. Here are a few common approaches, with quick explanations.
Envelope or Jar System
You divide your money into categories (like groceries, gas, entertainment) and set aside a fixed amount for each. Traditionally this was done with cash envelopes; today many people use separate bank accounts.
Best for: People who like clear spending limits and visual boundaries.
Zero‑Based Budgeting
Every dollar of income is assigned a job—bills, savings, or spending—so that income minus expenses equals zero.
Best for: Detail‑oriented planners who like structure and don’t mind reviewing numbers regularly.
App‑Based Budgeting
Budgeting or tracking apps can help you monitor spending, categorize expenses, or plan ahead.
Best for: People who enjoy technology and want automated insights.
(Remember: apps are tools. They don’t make decisions for you.)
Pay‑As‑You‑Go Systems
Instead of tracking spending after the fact, you pay bills and set aside savings automatically as soon as you’re paid. This is our preferred method. We call it the No-Budget Budget. We explain more about this below and provide detail instructions in our online video course.
Best for: People who don’t want ongoing tracking and prefer a set‑it‑and‑forget‑it approach.
Our Preferred Approach: The No‑Budget Budget
For many insolvency clients, traditional budgeting feels overwhelming or unsustainable. That’s why we teach what we call the No‑Budget Budget.
We still recommend you start with a simple, one-time budget or Money Plan first so you know what your income needs to cover. After that, the focus shifts to systems, not tracking.
How the No‑Budget Budget Works
- Create your Money Plan once – You list your monthly income, essential bills, savings goals, and realistic spending limits at the beginning. This helps you develop a plan to live within your means but do what you want with your money.
- Automate the important stuff
- Make a list of every bill you pay every month, with amounts. Your list will include hydro, gas, telephone, cable and so on. (You should have this already if you did a Money Plan in our course.)
- Next, divide each bill by the number of pays you get in a month. If your hydro bill is $100 per month, and you get paid every week, you need to pay $25 to hydro every week.
- Then, go to internet banking at your bank, and program in your bill payments for each payday. Do it for the next six months, so you don’t have to worry about it. Set up a reminder for yourself for the end of the six months to check that the amount you are transferring is sufficient, and update accordingly.
- Set aside enough money every pay period into a separate bank account to cover annual charges like license renewals, insurance, property taxes, dental and health visits, Christmas.
- Finally, transfer money to savings and emergency funds automatically each pay period.
- Use what’s left with confidence – Once your bills and priorities are handled, the remaining money is yours to spend—without guilt and without tracking every purchase.
If the money runs out before payday, that’s your signal to pause spending until the next pay. No spreadsheets required.
Why This Works Especially Well After Insolvency
- Reduces decision fatigue and stress
- Prevents missed bills and overdrafts
- Helps rebuild trust in yourself and your money decisions
- Encourages consistency instead of perfection
Most importantly, it aligns with real life. You don’t need to record every coffee purchase to manage money well.
Tracking Is Optional
Some people like to track their spending occasionally to spot patterns or check progress. Others don’t—and that’s okay.
If you follow your Money Plan and your system is working, you are budgeting successfully, even if you never open a spreadsheet again.
Here are some videos on how this works:
Here’s part two:
Free Budgeting Worksheet
For those who like to use a computer spreadsheet, download our free excel budgeting workbook. This is the same worksheet we use in our online video course. This detailed budgeting tool will help you:
- Set financial goals.
- Track your current spending.
- Build a balanced budget.
- Track your results.
A Final Word on Budgeting
Budgeting isn’t about being “good with money.” It’s about deciding where your money should go and reducing risk.
Whether you choose envelopes, apps, or the No‑Budget Budget, the goal is the same:
- Pay your bills on time
- Avoid new debt
- Build savings for the future
This is how you move from surviving to building a financial foundation that lasts.