How do you manage your money/budget structure

[Blackdanger***]

Do you spend without thinking? Do you have a very strict budget where all expenses are journalized?

When i first moved out from my parents house 6-7 years ago i got a huge wakeup call about money management and how expensive things are. From buying your groceries, to paying utilities/TV/Internet, to going to the pharmacy. I could have never expected life to cost so much.

The first couple of years i struggled, and even though i was technically making enough money to live on my own fine, i would come up short at the end of the month. CC account went up and soon i was in a decent amount of debt. One day i looked at how much money was spent in convenience stores, restaurants, etc and was shocked.

I've stabilized over the years and recently became a home owner, i could have never done it without a very strict budget.


I'm paid bi-monthly and everything is set up according to those 2 paydays.

I basically do my budget twice per month, on payday. Each monthly bill is linked with one of the two paydays. I pay them off immediately. I have a seperate account for gasoline and groceries/pharmacy items. I transfer fixed amounts of money to that account when i'm paid. In the end, i'm left with my savings. I allow myself some personal spending money, and the rest is transfered into placements and a savings account.

I don't have any card that gives me access to my savings. If i want to dip into it, i need to go to the bank, and wait in line for a tellar. This discourages me from dipping into it when i'm low stack.

I use my CC for all my expenses, but when i get home pay it off immediately. Its just to build a good credit line, I don't like spending money that i don't have.

How do you do it?

 

[Diktaattori]

I don't

 

[Josh]

Generally speaking, I spend money way too easily without thinking. It's just in the last few years that I've started budgeting effectively, which in turn has helped reign in my spending.

Budgeting is a great way to see the path clearly towards achieving goals. I've laid out my budget for the first half of 2013. I'll be taking 10 weeks off to travel this spring, and it's very reassuring to know that there won't be any guessing or surprises. I'll have plenty of loot to return home to, and can then lay out my budget for the second half of the year.

 

[CrazyN8]

I use a phone app. When I get paid it tells me all my bills and when they are due and I pay all of them up to the date of my next paycheck. It also tells me exactly how much I have in checking/savings as long as I keep it up-to-date. Savings get automatically taken form my check, never even see the money. I just stopped using credit altogether.

 

[Average Joe]

 

[SammyPops]

Wealthy Barber 101- automatic savings/pay ourselves first and avoid certain expensive unnecessary expenses.

 

[Average Joe]

But in all honesty. Read the richest man in bablon if you haven't already, and take your own lunch to work.

 

[Grob]

Similar to TS, when I first started out on my own I knew my income could only go so far so I made myself an excel spreadsheet and entered in every expense. Didn't matter if it was a 15 cent interest charge, I put it on the sheet.

At any given time I knew exactly how much money I had available. Seeing it on a form really opened my eyes to how much I spent on food and entertainment.

I never spent money I didn't have. I used my credit cards for everything, but they had to be paid off in full every month.

Interest is a real killer. I hate giving money to the banks and credit card companies but in cases of home/auto ownership, a necessary evil. I paid off my first car and condo by budgeting and going on an accelerated payment plan. Instead of monthly payments, bi-weekly. If I could afford an extra $50 a month, I would put that towards my car. Whenever I got a raise, I increased my home payments.

One other thing I did was to set up a savings account. Every month after all bills were covered, I would set aside 10% of what income was left. Then I would divide up the remaining to cover food and entertainment.

 

[Aliens]

I'm a student and I live off my gibill from the army and my part time job income. I just make sure I don't make stupid expensive buys throughout the month, and I keep my eye on my account to make sure it isn't low, I try to keep at least 1000 dollars in my savings and another in my checking as a buffer just in case, but besides that I just make sure I don't bite off more than I can chew and everything works out pretty well month to month.

 

[The Clinch]

Honestly, I don't live outside my means.

Grew up watching family, friends, and strangers happily dig themselves into debt.. And why? Not out necessity, but the "gotta have now" mindset, greed, stupidity, etc... Just scared me early on and I told myself I'd never become one of those people.

Only times I've had gregarious debt was tied to vehicles and college. Haven't owned a credit card and currently debt free.

 

[JuliaB4GSP]

Yeah, fairly loose budget. I know my expenses for every month and make sure I know how much I can save each month and how much buffer room to spend on extras. If you have health care and a full time job you can budget yourself and your family through anything.

It's crazy to me, my friends with less than I have making about the same with the huge credit card bills and always being behind. It's sad that in many relationships one person brings big debt with them and it eats away at the other person's savings. Both my brothers had to pay their wives' debts when they got married, they had a ton of money and then were both just getting by after they paid their spouses' debts. It'll never go back to the majority of people only spending what they're able to and only taking low interest loans out.

 

[Neb]

hmm, I dont manage it. I generally know my income and unless I do crazy stuff I manage.

I know I should save on certain things (always eating in restaurants vs cooking myself) but as long as I can do that and still do city trips and go on holidays, I dont feel like changing my pattern.

 

[Blackdanger***]

For the ones not managing anything, how old are you? Whats your housing situation? Are you thinking longterm? Do you plan on having kids?

 

[Neb]

For the ones not managing anything, how old are you? Whats your housing situation? Are you thinking longterm? Do you plan on having kids?

28, living alone in an appartment in a nice area of town. Not really longterm, but will buy something next year instead of renting (same expenses anyway). No kids in the next few years, no pets either

 

[therealdope]

We track everything. I would highly advise you all do the same. You should run your personal expenses like a business and that involves more than just tracking expenses.

1. track expenses: know what you need, and what you spend
2. Budget: what you need to spend, and what you would like to spend
3. control: stick to the budget plan.

Sounds boring but it beats having financial trouble.

 

[Gawd]

I don't bother with a budget, as long as I restrict my wife's spending money we'll be fine.

But then of course, I make teh 100 k.

 

[lion paw]

Well for one,I take my own lunch to work.off.I cook just enough for 5 days.When its payday,I pay a chunk of my credit cards off.Pay the rent,car insurance etc.Furthermore, I use my credit card and get close to the limit,I put it in my drawer.I use my credit cards mostly for gas or emergencies(auto repair,etc.).
If I want to buy bs,I use cash.

 

[Blackdanger***]

28, living alone in an appartment in a nice area of town. Not really longterm, but will buy something next year instead of renting (same expenses anyway). No kids in the next few years, no pets either

you're shooting yourself in the foot if thats what you think.

interest rate on mortgage?
notary fees?
welcoming tax?
yearly taxes?
general house maintenance/repairs?
higher utility payments?

 

[Satsui Ryu]

I don't budget more as I set a goal to be able to have zero credit card debt at the end of the month and I strive to have a certain amount in my bank account. I adjust my spending habits based on how far I am off of my thresholds.

 

[Neb]

you're shooting yourself in the foot if thats what you think.

interest rate on mortgage?
notary fees?
welcoming tax?
yearly taxes?
general house maintenance/repairs?
higher utility payments?

I did the calculation already, its almost the same as renting where I live, you only mentioned the cons of buying, not the pros. I pay around 1300 USD rent a month, I can get quite a good mortgage with the same monthly fee (with all the extra costs included). When my situation changes, I will either sell the property or rent it.