Military Finances 101: Four Easy Ways to Simplify Your Budgeting Process

Back when I was on Active Duty, we had the concept of KISS (Keep it Simple Stupid). Complicated plans tend to not get executed well. The same thing applies to your money and budget. Budgeting doesn’t have to be a daunting, time-consuming task filled with number crunching and tracking. While traditional methods such as spreadsheets and budgeting apps can help, they often complicate rather than simplify the process. 

If you dread undergoing a budgeting process, you're not alone. Luckily, there are ways to streamline your budgeting routine that can work seamlessly with your lifestyle. Here are five easy ways to simplify your budgeting process that go beyond apps and spreadsheets.

1. Implement the One-Number Budget Rule

Traditional budgeting often involves allocating a set amount for multiple spending categories, such as groceries, dining out, entertainment, and transportation. This process can quickly become complicated, and expenditures can be hard to track. Instead, consider using the One-Number Budget approach.¹

How it works:

• Calculate your fixed expenses (rent/mortgage, utilities, insurance, debt payments, etc.).
• Determine your savings goal and automate that portion.
• The remaining amount is your "one-number budget"—this is what you can spend freely for the month.

By focusing on a single number rather than tracking amounts in multiple categories, you remove a major point of budgeting stress and make it easier to stick to your plan.

2. Automate and Batch Your Bills to One Pay Date

One common budgeting concern is juggling multiple bill due dates throughout the month. Missing a payment can result in late fees and added stress. Instead, simplify your financial management by batching your bills to one payday.

How to do it:

• Contact service providers (utilities, phone, insurance, etc.) and ask if they can adjust your billing cycle to align with your paycheck schedule.
• Set up automatic payments so you never miss a due date.
• If possible, set all bill payments to withdraw on the same day each month so you can easily see what funds remain for discretionary spending during the rest of the month.

This approach reduces mental clutter and ensures that you always have the necessary funds to cover your bills and that you know exactly when they will be withdrawn every month.

3. Leverage a Cash Flow Cushion Strategy

For individuals who are invested in the market, maintaining liquidity and flexibility is key when thinking about a budget. Instead of focusing on detailed line-item budgeting, prioritize maintaining a substantial cash flow cushion.² Having an extra amount of readily available funds allows you to worry less about minor fluctuations in expenses.

How it works:

• Set a target buffer amount in your primary checking account (ex, three to six months' worth of discretionary expenses).
• Replenish this buffer automatically whenever it dips below your target.
• Use this cushion as a way to absorb unexpected expenses without disrupting your investment or long-term savings strategy.

This method ensures financial stability and flexibility without the need for strict tracking.

4. Switch to a No-Cash, No-Debt Envelope System

You may be familiar with the cash envelope budgeting method, where you allocate cash into envelopes for specific spending categories. However, in a digital world, this system can feel outdated. Instead, try a digital adaptation that removes the risk of debt and still enforces spending limits.

How to do it:

• Open multiple checking accounts (or use separate sub-accounts) for different spending categories, such as groceries, fun money, and essentials. Check with your bank to ensure there aren’t any additional fees associated with these accounts.
• Fund each account at the start of the month based on your planned expenses.
• Use a debit card linked to each category-specific account. This prevents overspending because you can only use what’s available.

This budgeting method keeps you accountable without the hassle of carrying cash, making it a modern, practical twist on the traditional envelope system.

Budgeting doesn’t have to be complicated or overwhelming. Whether you choose the One-Number Budget approach, maintain a cash flow cushion, or implement the core-satellite investment approach, the key is to simplify the budgeting process while meeting your financial goals.

Military Finances are Different

We know, most people should have a budget. Most don't face the same consequences if they run into money problems. Get yourself into trouble financially can cost you a security clearance, or worse. That's not the only way a military member's finances are different than a civilian's. That's why we think that if you wear or wore a uniform, you should work with a financial advisor that understands your unique circumstances. If you'd like to find out how we work with people like you, use the button below to schedule a free, initial consultation.

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If you found this article useful, you might like the following blog posts:

Military Finances 101: A Financial Survival Guide for New Parents

Military Finances 101: If Inflation is Coming Down, Why is Everything Still so Expensive?

Military Finances 101: Start Your Financial Plan

1. https://www.ellevest.com/magazine/budget-and-planning/one-number-approach
2. https://www.investopedia.com/terms/l/liquiditycushion.asp
3. https://www.investopedia.com/articles/financial-theory/08/core-satellite-investing.asp

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.