BudgetMem: Training-Free Selective Memory for Cost-Efficient Long-Context Processing in Language Models

Processing long documents with large language models (LLMs) is expensive: a single query over a 100K-token document can cost from tens of cents to over a dollar in API fees, depending on the model, and memory grows linearly with context length. We introduce BudgetMem, a training-free architecture that keeps only high-salience content under an explicit memory budget. Unlike token-level neural compressors such as LLMLingua, BudgetMem makes chunk-level keep-or-discard decisions from interpretable features: entity density, TF-IDF importance, position, numerical density, discourse markers, and question presence. Across four benchmarks, BudgetMem matches the uncompressed baseline on template-generated structured documents (F1 = 0.859 vs. 0.855) while discarding 70% of chunks. As a pre-retrieval filter on the same documents it outperforms LLMLingua-2 by a wide margin (0.859 vs. 0.554), because token-level compression destroys the phrasal structure that retrieval depends on; the advantage holds across model scale and family (Llama-3.2-3B, Qwen2.5-7B), under dense retrieval (0.918 vs. 0.530), and in LLMLingua-2's intended direct-feed mode (0.797 vs. 0.720). On real NLP research papers (Qasper), BudgetMem is competitive but not free, trailing the full baseline by 7.4% and LLMLingua-2 by 5.5% relative F1 at a 72% storage reduction. Removing discourse markers or numerical density hurts most, although TF-IDF alone scores as well on template documents. The pipeline needs no trained models or GPU for compression and runs on a 10/month Colab instance.