Budget tips

[SoreArms]

I've never succesfully implemented one but like to start

if you have a budget

What were the biggest obstacles you had to overcome when first following your budget?

What are some of the things that helped you follow your budget?

I get paid weekly, but most bills/expenses need to be factored monthly (and are usually due around the same time of the month). How do I create a weekly budget with the months expenses in mind?

Any other do's, don'ts, and tips in general would be greatly helpful.


Thanks in advance,

Financial Newb

 

[bran987]

I've never succesfully implemented one but like to start

if you have a budget

What were the biggest obstacles you had to overcome when first following your budget?

What are some of the things that helped you follow your budget?

I get paid weekly, but most bills/expenses need to be factored monthly (and are usually due around the same time of the month). How do I create a weekly budget with the months expenses in mind?

Any other do's, don'ts, and tips in general would be greatly helpful.


Thanks in advance,

Financial Newb

you've set up much more complicated spreadsheets for let's just say.. other purposes you've told me about?

just take your weekly check and multiply it by 4, that's a month

actually, it is easier to calculate a lot of items on a weekly basis, i.e.

food
gas
etc..

one of the hardest parts about making a budget is that you tend to delude yourself. just like when a person is starting to actually count calories for the first time, there are 150 calories in the little tiny bag of potato chips here, 300 calories in those 2 beers after work they forgot about...

you gotta think hard, for awhile I didn't realize I spend $50-100/month on books! things like haircuts for $10-20 there are lots of items like that.

be honest. figure out what you need to spend in order to enjoy your life within reason, and budget accordingly.

a lot of people say 'take 10% of your paycheck and put that towards paying off debt/investing, you can spend the rest'

I say screw that, if you figure out your budget and you can get by being happy on 70% on your paycheck, put the other 30% towards debt instead of spending it for spending's sake. you'll get out of debt 3x faster (actually more than 3x faster because every month you are slowly killing the compounding against you)

I am of course talking about bad debt like credit cards. mortgages/student debts are different because of tax deductions etc.

those are some suggestions

 

[MattTheSkywalker]

orb

step 1: write down every single thing you spend money on. You buys a soda for $1, add "Soda, $1" to your list.

Do this for a month.

 

[SoreArms]

orb

step 1: write down every single thing you spend money on. You buys a soda for $1, add "Soda, $1" to your list.

Do this for a month.

Yeah, I actually already started doign that this week

Similar to what Bran mentioned above, I remembered that when I first started watching my diet, I wrote everything I ate for a couple of weeks to see what I was consuming before I altered my diet. So I assumed it might be smart to do the same with my moneys.

I already see dry cleaning might have to get toned down a bit, so far $70 just this week!

Thanks to both of you guys for the responses

 

[Razorguns]

honestly..

i rarely concentrate or dwell on what i spend. For the concentration of "spending the money" winds up distracting you from the ultimate goal of "making the money".

Money is MEANT to be spent and enjoyed. Unless i'm freeballing WAY more than I earn, and getting myself in trouble -- i don't sit there and agonize over the fact that i spent $20 extra for better seats at a concert. I'd rather go home and agonize over why i can't afford it, and how i can change that reality.

Same problem -- different approach.

As long as you're "spending within your means" -- you should be okay. Of course many magazines encourage you to document every cent you spend, blah blah. That'll cut down on your monthly costs, and ultimately keep more money in your pocket -- but it has a inherent danger in it's implementation. That danger of removing your focus of how i can *make* more money so i can get the things that i want and enjoy merely than just forcing myself to live with the cheaper tv. A "quick-fix" as far as i'm concerned.

 

[bran987]

honestly..

i rarely concentrate or dwell on what i spend. For the concentration of "spending the money" winds up distracting you from the ultimate goal of "making the money".

Money is MEANT to be spent and enjoyed. Unless i'm freeballing WAY more than I earn, and getting myself in trouble -- i don't sit there and agonize over the fact that i spent $20 extra for better seats at a concert. I'd rather go home and agonize over why i can't afford it, and how i can change that reality.

Same problem -- different approach.

As long as you're "spending within your means" -- you should be okay. Of course many magazines encourage you to document every cent you spend, blah blah. That'll cut down on your monthly costs, and ultimately keep more money in your pocket -- but it has a inherent danger in it's implementation. That danger of removing your focus of how i can *make* more money so i can get the things that i want and enjoy merely than just forcing myself to live with the cheaper tv. A "quick-fix" as far as i'm concerned.

he lives paycheck to paycheck, has messed up his credit, and has credit card debt, this is bad advice IMO and the mindset that gets people into this situation.

if you ever checked the percentage of millionaires who use coupons, you would be surprised. there's nothing wrong with being frugal. it doesn't mean you can't order extra guacamole at Chipotle, but some people do need to keep a budget - at least for awhile.

 

[SoreArms]

Unless i'm freeballing WAY more than I earn, and getting myself in trouble

Unfortunately Bran is correct

I always seem to spend above my means.

 

[bran987]

I think he just got a little too philosophical about it all
just because you are aware of your budget and maybe even cut back on things
doesn't mean you can't dream/invest/start other ventures
nothing taken to an extreme is good, and that includes being a penny pincher but
it just means you're more aware of yourself and that's never bad

 

[Razorguns]

Yes. I agree.

Problem is -- TOO many people equate the motivation people get with "He was broke. $50k in debt. desolate. And had nothing to lose -- so he went ALL OUT and the made millions" with the type of motivation you can ONLY get when you hit rock bottom.

You can EASILY (and more important, more successfully) have that same motivation get you that reward of millions while NOT at rock bottom. Granted, you may still have your day/job -- but you can use your present financial resources, and leisuire of available time to carefully and accurately plan out your business, venture and define it accordingly. You can do all that, WITHOUT having to go broke first.

 

[MattTheSkywalker]

if you ever checked the percentage of millionaires who use coupons, you would be surprised.

word. Someone very close to me is a nine-figure guy, ($100M+) and absolutely HAMMERS people on everything he buys. He bought a car a while back, and he hammered the dealer for like 3 hours. I think he saved $4,000. He wanted a rental house out of town and hammered the owner of the house for an hour to save $750/month.

I asked him about it - I said, "In the time you spent meating up the dealer, you made enough money to buy 5 cars. Why did you hammer him so bad?"

And he said "I guess I have always been that way". It was just second nature to him.

There is a lesson there...and no, he is not hammering these peons to amuse himself.