Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

Budgets Suck — Try This Instead

11 Dec 2025 · 1 min

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In this monologue, Ramit Sethi argues that traditional, restrictive, backwards‑looking budgets are miserable and cause unnecessary guilt by forcing you to track every small expense. He proposes a forward‑thinking "conscious spending plan" that allocates money for guilt‑free enjoyment while automatically handling savings, investing, and fixed costs. The approach promises clarity, eliminates obsessive focus on minor purchases, and lets you concentrate on the big financial wins.

Chapters

The problem is budgets suck. I don't keep a budget. You can use a conscious spending plan. It works differently than a restrictive, backwards-looking budget because it's actually a forwards-thinking plan. Budgets force you to track every single dollar. You're sitting there tracking the price of olives. Now you have to cut out drinks with your friends. You feel guilty when you buy one of those little freaking Hershey chocolate bars that brings you joy. It's a miserable way to live. When you have a conscious spending plan, you're going to have clarity knowing exactly how much you can enjoy guilt-free while still automatically saving, investing, and paying your fixed costs. You're going to be playing financial whack-a-mole. Oh, and then you're going to be this puritanical, typical American. Oh, I'm so bad. I shouldn't have gotten that latte. I'm so bad. Punish me. Stop this bullshit. Okay? Stop wasting energy obsessing over small purchases while ignoring the big wins. Make a freaking plan. You'll have clarity knowing exactly what to do.