Excellent post, and a good analysis on how you budget. I’ve mentioned how I manage my money many times and sorry to the legacy community members who may have read this already .
I budget based on a fixed amount of spending money each week that I don’t need to account for. Everything else I have automated through direct debits or standing orders bouncing money about or deducting it. I do very little to do with bills anymore except adjust it when I gain a new long term bill.
My Budgeting:
My salary enters account A and my bills (direct debits etc.) come out of that account as usual. If bills fluctuate, I budget whatever was the highest I ever paid for that bill even if it has since dropped. I have then worked out my surplus money after all my billing deductions. I have standing orders set weekly to automatically move money from account A to account B to use as weekly spending money and monthly to account C for my savings. I should have an account D for yearly debits like @garete uses in his setup below.
If/when I run out of money in account B I have to wait until the next ‘weekly payday’. I could cheat but it physiologically helps better spread my payments as I only ever look at the balance of account B. I never look at the balance in account A (except, as I said, to do any adjustments), I treat it as if it isn’t there. Any spare money in Account A is swept into my savings before payday and I will get warning texts if it somehow is about to run out of money early. All my non-bill spending, including food and travel, needs to come out of account B.
Essentially, I try to imitate https://squirrel.me/ without actually paying for their service. I’ve tried to use services like YNAB but I find its not worth the hassle. In the end, I worked out how to live within a fixed budget each week without thinking about bills at all because of making sure my main account is always in a surplus. I have been thinking of moving to a daily budget but never get round to sorting it out.
@garete made an excellent illustration of his similar setup which I always seem to use in my explanations.