Financial and learning to Budget.....

[longlegzs80]

I'm in a financial pickle. My money situation isn't growing and I am always tight for cash. For those of you in the same position or been there, what have you done to save money or how did you budget? Does anyone here budget their money? My paycheck is a live from week to week on little money kinda thing and I need some help on budgeting to help my money be saved.

[Spirit]

Hi longlegzs80,

 

When I lived alone after high school, I saved money by buying food essential to me nutrition-wise: my groceries were limited basically to cereal, milk, juice, bread, pasta, rice, fruits, vegetables, and lean meats for eating mainly these foods kept me in good health; plus these groceries were cheap relative to pre-packaged meals and snack foods!

 

In my experience, buying non-essential foods and snacks such as coffee, soda-pop, chips, candies, specialty jams, and such had me spending per year hundreds of additional dollars on top of my budget for essential groceries.

 

I also reduced my spending greatly by eating at restaurants only on rare yet special occasions; I always brown-bagged my lunch and dinner for school and work.

[JamesM]

I would strongly suggest that you read a book by Dave Ramsey.

 

Financial Peace

The Total Money Makeover

 

I think you will find these quite helpful.

[Enema]

Get a little notebook.

 

Write down every time you spend money, how much it was and what it was for.

 

Review at the end of the month and see where it's all going. Should be common sense what you can/can't cut out to save more money.

[lrae]

Ideally 15% of your gross (before tax) earnings should be put away for emergency savings/dream fulfillment/retirement and 15% of your net (after tax) earnings should be applied to any outstanding debt. Especially high interest credit card debt!!!

 

The easy way for me to save $$ is to transfer it into an account (that I can't easily access) on the day I get paid. I have spoken with my bank and they automatically transfer my set amount for me every two weeks (I get paid bi-weekly).

 

If 15% seems too much of a hit at the start, start with a smaller amount, get used to living without it and then increase your savings percentage until you reach 15%. For example, try 5% gross into your savings (even 1% works) and then increase your savings amount by 1% every 4 months until you reach 15%.

 

When you do it in increments like this you will hardly notice a change in your lifestyle but your savings after a year will be a lot more than you had the year before!!

 

A good way to cut down your spending - pay cash for everything! Don't use credit cards or your debit card. Also set a purchase ceiling for yourself (say $100). If you want to purchase something that costs over $100, walk away and think about wether you really want, need it, and can afford it for two days. If you still really want that item after your cooling off period - then purchase it.

[Gunny376]

It depends upon to which level you want to take it. Me,

Myself and I, could go out and live off the land if I had

to ~ but I’ve been trained to do so not just through the

Marine Corps but through the Scouts.

 

Over and over I keep beating these two subject to Death.

 

The two most important areas of our lives ~ day to day~

are the two that we’re the least prepared for in adult-hood.

 

Marriage and personal finances. Nothing in High School

nor college prepares us. If you’re fortunate to have been

raised by parents who have been raised by parents (that’s

not a double phrase ~ it’s a generational thing) you know

what the deal is.

 

You know what a rip-off’s the "pay-day" loan bubba’s are.

And you know what a rip-off the "title-loan" bubba’s are.

 

One poster mentioned Dave Ramsey ~ and he’s good and

has a good handle and program. I’ve read his book, and I’ve

listened to his programs on the radio.

 

But, I’ve got to side with Mary Hunt, and her "Debt Free

Living" Program. She’s got a website, but because of LS

policy ~ I can’t link you. It’s a paid website, ($2 a month)

for which you get complete access to her website, back

newsletters, forums and such. Her website is chalked full

of ideas about how to get really good at getting by on little or

nothing.

 

Goggle ~ Mary Hunt and Debt Free Living

[Curmudgeon]

My wife and I got reaL serious about our financial future immediately upon marrying 10 years ago since we both started from $0 other than our retirements. Approximately 18% of my gross income every month goes into savings, a 401(k) and a mutual market fund account. As I receive raises and promotions we continue to live on what we live on now and invest the entire gross raise in tax-deferred funds. That ensures continued growth and our current standard of living is just fine for us.

 

We each permit ourselves a monthly "allowance" and I've created a zero-based, monthly budget for each of us -- her's for the household expenses and mine for the bills and investments. My wife retired early so has no working expenses. I walk to and from work (about a mile and a half each way) and I pack and take my own lunch at least four days a week and limit myself to a single cup of coffee after i leave home each mornng.

 

We don't use our credit cards except our highest balance, lowest interest card which has a cash-back feature. We put most of our spending on it during the month which we track on a spreadsheet and pay off at the end of the month so we get cash-back credit for the purchases but pay no interest. That's all we use it for. We have monthly budget spreadsheets for each of us so we know what we've spent for the month, what we've spent it on and what we have left. Any money left in either account at the end of the month rolls over into savings. All accounts are joint but we each operate out of separate ones.

 

I think the best way to get started is to record everything you spend for a couple of months to see where your money is going. Then you can figure out what you can adjust or cut back on. That's a good start to money management. Always save a little, even if it's very little because it WILL grow over time and inspire you to do better.

 

You can do it!

[Trialbyfire]

Three things will kill any tight budget:

 

- alcohol

- eating out

- car

[Porn_Guy]

Three things will kill any tight budget:

 

- alcohol

- eating out

- car

If you're a man you can add dating to that list.

[Trialbyfire]

If you're a man you can add dating to that list.

I can see that. Paying for two on a consistent basis can be expensive.

[Curmudgeon]

I agree with the first two. As for the car, I know what the fixed expenses are and budget for them. I then add $150 a month to that line item for the unexpected. If the unexpected doesn't happen then it rolls over into the following month so it continues to build. Thankfully, for anything really expensive, we have the cash reserves to cover it if need be.

 

Those roll-over funds will also be a part of the down payment on a new car we expect to buy a year from now. Thankfully, we only need one car since I walk to and from work and my wife's retired.

[Trialbyfire]

I'm going by the following premises for the car:

 

- Insurance

- Gas

- Possible monthly payments (lease or finance situation)

- regular scheduled maintenance

- unscheduled maintenance