Personal budgets

my budget looks great.....but

somehow every month I have atleast two $300-$500 bumps in the road....this month I had $1000 in car repairs on a fairly new vehicle (not under warranty), a plumbing issue $250 and a $533 power bill.

Power was $230-$280 all the way up to May....now it's $500....I told them they were thieves and if I could run a generator 24/7/360....I would....I also told them that they were all going to hell.

If things worked out the way they are suppose to....I'd be pretty comfortable.

 

I swear by Quicken. It's the only thing that keeps all my accounts straight. I don't use it for credit cards as I just pay those off each month. Mainly I use it for our saving and checking accounts. I hardly ever keep cash on me as I use my checkcard whenever I need cash. The most important thing we do each month is pay ourselves first, before we pay the first bill. We treat that payment just like a bill and never try to miss it. I have started doing that with my new daughter as well. I opened a savings account for her when she was born last December and the first of each month I put some money in it. Haven't missed a month yet. Budgeting, no matter what type you decide on, take discipline. Without that no budget will succeed.

 

This is good stuff. We NEVER had a budget. Seemed like money was no obstacle. Always had enough to do what we wanted...with plenty left to invest...

Then we had a kid...my wife started a "job share" at her work...then we had ANOTHER kid...things aren't like they used to be.

We are in the process of starting a budget. I don't think either of us really wants to REALLY look at our spending...especially my wife...damn she spends a LOT on lunches...and general BS from stores...

 

Meatpile, it's pretty cool how fucking nuts excited you get about finances.

 

I think my biggest budget problem is not enough income.

 

I've always had a hard time sticking to a budget, and I am in a lot of mess now because of it. However, when I was working part-time at Curves in January, one of the women who worked out there gave me a book she wrote. It's called "If We Only Knew Then What We Know Now" *wiping the dust off if it* - I read it, it was good and I swear by some of the techniques. She only published about $500 copies, so I am lucky to have this book.. she was only visiting in town from Michigan.

I'll share some of the tips she reccomends, and the ones I use:

- Avoid debt or don't spend money you don't have.
- Time is money, so don't waste it.
- Save for a rainy day.
- A penny saved is a penny earned.
- Have a strong work ethic.
- Take care of your own.
- The world doesn't owe you a thing.
- Build a better mousetrap and the world will beat a path to your door.
- Count your blessings.
- Give something back.

1. Set short & long-term goals:
Goal - Timeline (start year, acheive by year) - Strategy/Plan - Goal Acheived yes/no?

2. Get organized for success:
Think of your financial success as a business and write a business plan. Create assets (such as: cash, cash equivalents, property, investments) instead of debt and liabilities (such as: loans, credit cards, taxes, etc.)

3. Designate a portion of a room in your home as your office area, visit a local discount store/office supply store to purchase items for your home office. Create a file cabinet with folders labeled in all the important areas from a-z (keep all your recipts to file). Rent a safety deposit box at a bank to put valueable items (such as: jewelry, deeds, stocks, bonds, and other certificates that are extremely vaulable.)

Familiarize yoursel fwith your computer, software programs (including one for money management) and use of the internet. There are also low cost, easy to use tutorial programs to assist you in learning.

4. Making money and having money are not two sides of the same coin. "If you can't manage ten dollars, you won't manage a hundred dollars and lord don't give the fool a thousand, he'll just go crazy" - Isabella Owens Allen.

Know where your money goes. Keep track of the big expenditures, such as the rent or mortage, car notes, etc. The small things you spend will add up to surprising sums. Create a daily log of spending (name of item, amount spent) to track spending and don't leave anything out no matter how small the cost or form of payment. Write down everything and the cost of each item. Keep the log with you wherever you go to ensure that you record everything for at least 7 days. Add up the total amount you spent each day. Keep track for a minimum of 30 days, figure out your monthly total, keep it as a reference. Analyze the results Once you have a good handle on where your money goes, it is important to evaluate your spending habits. Think about if savings and investments are being sacrificed.

Create a table of your basic needs (food-groceries/dining out/other, clothing, shelter-rent/mortage/maintenance/other, transportation-car payment/car lease/public transportation/maintenance/other.)

Create a table of your wants (extras, not essentials)

5. Create your "un-budget" (write down your income "gross=before taxes / and net=after taxes) Start your "unbudget" by starting in the confort zone of most Americans, cnsumer spending. Your long and short-term goals will serve as your financial target. Now take your basic needs list and expand it to include eleven categories under the major heading of monthly expenses: home, utilities, transportation, health care, food, clothing and grooming, travel and entertainment, charitable contributions, savings, loan repayments, and miscellaneous. (customize it to meet your needs) Then figure out the average cost in each of your caegories.

Moment of truth - is your net income greater than your total expenses? Calculate the difference. Hopefully your income is greater than your expenses. If it is not, don't panic. You're in the same situation as most Americans. If you expenses exceed your income, you have 2 choices: increase your income by getting a second job and/or cut spending.

Helpful Hints for Success
Pay yourself first - at least 10% of your earnings should go into savings. Your personal finances is a business and you are in charge (the boss). You deserve at least this amount as the CEO/CFO.

Give 10% of your earnings to charitable nonprofit organizations. When you help build a sense of community and benevolence toward others, you get more in return than you give. (not to mention the tax breaks)

Learn to say no to yourself.

Live at or below your means (on < 80% of your net income). Successful money management is based on the choices you make. When your goals dictate your choices you feel empowered and in control of the decisions you make.

------------------
Here is a link, and although this is not affiliated with her book in any way, I found it online and think that it could be of some use to those of you who are looking for budgeting and financial help. http://www.homemoneyhelp.com/

There is a lot more, but I just left it at this due to the topic of budget... I wanted to write this out anyways cuz I need to return the book to her when i'm finished. I hope you enjoyed it like I did.

 

What's the deal with organic milk?? If she has to have it, have her switch to designer protein-whey..make it with water and fruit for smoothies..sounds like organic is very expensive..maybe she should drink the whey smoothies for the protein and do without the organic..do the babies drink it as well? Consider the Designer Whey from GNC..I can tell you it is healthier than milk.

 

Good tips, but this link doesn't work.

 

I generally try to cut out the middle man - on everything

Plan excursions (need to go to the store/post office/gas station - do it all one round trip on the way to/from work: saves gas, time, and money)

Shop in bulk (only go to the grocery/druggist/home store) for perishables or items of immediate need (rare)

Shop SALE items only - even with groceries - if you can get yourself on this rotation and stock up on sale items when they come around, you'll find that you always have what you need and you never pay full price for anything. I've been doing this for years. Especially helpful with clothing/shoes - shop only clearance racks, buy timeless classics, and plan ahead

Use cash. If you can't pay cash for it you don't need it. You'd be surprised what this eliminates out of your spending. For those with runaway debit transactions, if you force yourself to go to the ATM and use cash only, you'll find this especially effective on conservation. It also eliminates those extra "hold fees" they tack onto your accounts sometimes which can bounce other transactions

Set aside enough every month to pay all of your household bills & general maintenance. From what's left, set up what I call "Christmas Accounts" for projects, vacations, savings, retirement, emergency fund, etc. I have a savings account I work out of. I've broken the monies in there down on paper according to what I plan to spend it on. Every so often I add to those monies. For example, this weekend my "new carpet fund" hit 4K (my target for getting new carpet), so I plan to shop the best deals, probably open a credit card with purchase to save an additional 10%, then turn around and pay the credit card off in one fell swoop and be done with it (no interest, so who cares about that 21% rate? then close that account and cut up that card)

Keep a credit card only for emergencies or credit card required purchases only, and then pay off that credit debt before you do anything else! I have emergency credit cards which I've used for emergency once or twice, but generally I plan enough annually for emergency funding that I haven't really found this necessary. I usually only use a credit card only for large or cc required purchases (for example, I recently bought a trip at auction which required a credit card transaction. I then transferred the money to pay it off before the cc company ever printed a bill)

For those who absolutely have to have credit cards to survive, take a permanent marker and write the APR on the back of each card so you know which is the lowest card to use (if you must make those payments). This will also remind you every time you use the card that you're paying sooo much more than the original price (all that interest adds up)

I think the best advice ever, is to always keep an emergency backup fund. You never know when these come in handy. I keep a few months stash in mine, came in really handy several years ago when I decided to make an unplanned career change