I am definitely in the zone of loosely budgeting. I really like to be able to have fun and treat my kids to things I didn't have. Saving is important but is it important enough to budget so tightly that you can never go out and eat or to a show? I really have a hard time with this and it shows since my savings is practically non-existent.

I definitely see what you are saying, FrugalFran. It does sound nice in theory to save as much as you can, but then you run into the issue of not being able to enjoy it as you get older. My parents were a little bit like this and now that they are in their mid-70's they just don't want to do certain things now.

I think budgets become tight when you take on too many expenses. That was my case so I'm trimming the fat. This will leave me more play money and loosen things up a bit.

Very true! It certainty is a give and take. A splurge every once in a while is okay (especially if you can find cheap splurges!) and it can give you motivation to save more in the future. BUT you never want your current purchases to destroy your future.

Breakinger wrote:

FrankN wrote: I used to have a very flexible budget. However I have recently gotten married and we are trying to save for a house and for kids down the road so I have had to turn it rather tight. When you need to provide for other things, it usually tightens the budget quite a bit!

This is exactly what has happened in our situation, FrankN. Our budget never used to be tight until we purchased our house and had three kids. Now we have to make sure that there is enough for all. Hopefully, once everyone is grown up we can loosen our budget again. What do you think?

Breakinger, I think you're in the same boat as most people. Family responsibilities come along and you need to tighten up with the hope of having some fun money to spend when the kids are grown and on their own. That's just pretty much the way life goes, but I do agree with Frank that you need to use a little of it now once in a while. Being comfortable later on is important, but you can't save all the fun for the retirement years.

FrankN wrote: I used to have a very flexible budget. However I have recently gotten married and we are trying to save for a house and for kids down the road so I have had to turn it rather tight. When you need to provide for other things, it usually tightens the budget quite a bit!

This is exactly what has happened in our situation, FrankN. Our budget never used to be tight until we purchased our house and had three kids. Now we have to make sure that there is enough for all. Hopefully, once everyone is grown up we can loosen our budget again. What do you think?

The tough part of a very tight budget is we get tired of telling ourselves "NO" and we throw it out the window. So, some flexibility allows us to keep the home fires burning and yet have a little fun money. In light of playing catch-up financially, keeping the budget tight may be all you can do at this time. Remember, you need to have some fun (recreation) or you will explode

My budget is so tight you can hear it squeak in the dead of the night. I have a lot of financial catching up to do and I'm keeping my focus.

I used to have a very flexible budget. However I have recently gotten married and we are trying to save for a house and for kids down the road so I have had to turn it rather tight. When you need to provide for other things, it usually tightens the budget quite a bit!

I have always had a budget and it's always been a tight one. I want to make sure that all of the important stuff is paid for and whatever is left gets saved. I'm too am amazed at how many people don't budget their money. They really don't know what they are missing out on.

I've done both, but I am currently about to transition from a loose budget to a tight one. I have a certain amount of money I want to save this year and I'm going to have to cut out some of the frivolous stuff to make it happen.

This is spot on. Tight for when you have to be and loosen it up for extra savings. I am just really glad to see that other people think the same. Budgets help you save money.

I would agree with your approach, and I think that is the right philosophy.

I have a tight budget when I need to and a loose budget when I can. I tend to loosen up the wallet during this time of the year. I believe that being frugal should take priority over being a spendthrift.

I believe it is good to experience both a tight and a loose budget. Depending on your circumstances and time in life, you will need both, and will know how you react to both. The tighter budget will help you stay in check, but there are certain situations that you cannot control, and you need to be able to have a more loose budget to be able to plan for the unknown.