i keep my budget very flexible. basically as long as i spend no more than 75% of my take home pay i'm in good shape.
one day i realized that when i hang out with my friends sometimes we go see movies, sometimes we eat out, and sometimes we shop. in a strict budget those would all come out of different budgeted categories, but for me they're all spending on the same thing (socializing with friends) so that made me decide that the categories don't matter as much as the total
I'd like to win a copy of this book because I need a better (simple and positive reinforced) understanding of my finances. I am seeking tutorials that actually work. Thank you for the opportunity!
It's good to find another success story! I'm a just-starting-out p.f. blogger, focused on getting out of debt AND finding peace with my situation in life. I think it's important to make that personal happiness or serenity part of the bigger picture. I think it's perfectly realistic to think that financial security and having fewer things (especially when you don't need them) will make me happier.
What's unrealistic is thinking having more money will automatically make you happier - it's what you do with it that counts, and how you feel about yourself at the end of the day!
Setting up a budget really helps you see where your money is going, and where you can save money. I do keep a budget, but will be flexible with it from month to month depending on expenses.
Do I NEED this or do I WANT this is always a question I ask myself. If it's a want, make a plan, and then buy it LATER.
Using the cash envelope system helps, food, entertainment, gas. I tend to be more mindful on what I buy when using cash vs. credit/debit card. When the cash is gone, it's gone.
General framework! I sat down a few months ago and worked out in a spreadsheet the percentages of my income I'm spending on:
+housing (rent, electric, water, cable)
+transportation (bus pass)
+retirement savings (403b, Roth IRA)
+other - this category is huge!
And I was happy with the numbers. Should redo it since I just opened a savings account this weekend and set up automated savings!
That is why I do couponing! I figure I can buy more things and the average of all those cheaper if I use coupons. My grandma always said..."never pay full price".
All honestly not many people do follow a budget. Budgets are a good tool but its hard to include in a budget expenses that come up. Like a car repair, someone going to the hospital, things of that nature.
Hyperinflation is definitely something the U.S. needs to avoid. We want America to come out of this recession stronger and more resilient than ever, and hyperinflation is definitely something that could destroy that. That, and if the public doesn’t start putting money into local resources instead of national, monopolizing chains. We have to think different to be different!
My husband and I were inspired to create a budget spreadsheet after reading the book 'Your Money or Your Life'. We had an informal budget before that, but a few years ago we created comprehensive budget spreadsheet from scratch, and track every penny we spend. We have numerous specific categories for all spending areas and even have gauge widgets for each category. As we track throughout each month, the gauges read green, yellow or red to let us know if we are getting close to our maximum for the month. It's been our most important tool to help trim the fat from our budget, and a real eye opener.
It has been a work in progress, and it took a lot of time to set up. But now it only takes about an hour a month to update. In addition to the spreadsheet, we have a monthly meeting we affectionately call our 'financial summit' to review our budget and how we are tracking to meet our financial goals. I would consider this our most important step towards financial independence.
More important than setting up a budget is the monitoring of your performance against your budget month to month. What it takes to be most successful in budgeting is diligent monitoring, before the end of the month if possible (credit cards, ATM withdrawals, cell phone minutes) or soon after the end of a billing cycle (water, phone, electricity). When you know your variance and you know where to change planned values or where to add buffer (or when for cyclical patterns) you'll have much more success in directing your money and knowing how much money you have left over for wants or more strategic goals.
For me it works better to work within a loosely-structured budget. I don't like to be bossed around—even by myself. That said, the parts of my budget that ARE structured (bills, rent, gas) are constant. Everything else falls under "spending money." I give myself an allowance every week. I pay for everything in cash, including groceries, eating out, gifts, and any other variable expenditure. It works well. I have been sticking to this budget for almost five years. Paying for things in cash makes me hold myself accountable. If I decide to splurge on something, that means I have to cut back in other areas. So, if I go out to dinner one night, I have to eat at home the next. It's fair.
I think the idea is not only to avoid the extra bag at the airport, but also having to carry it once you reach your destination.
Also, you say that FedExing is cheaper. Really? Since when can we overnight (or even slower) a 50 lbs. bag for $25 or less? which is what the airline charges per piece of luggage.
I follow an extremely tight budget that is kept on an Excel spreadsheet. There are line items showing the dollar amount dedicated to every single thing I spend each month: mortgage, car payment, insurance, groceries, gas, etc. Then there are separate tabs to track what I actually spend on a weekly basis. For instance, my monthly grocery budget is $400. Each week, I enter what I actually spend at the grocery. At the end of the month, whatever total is below $400 goes to savings, in addition to the regularly scheduled monthly amount. No matter, I never go over the dollar amounts budgeted for each category, because I simply can’t afford to.
It took a tragedy for me to get to the point where I follow a budget religiously. I am thankful for that tragedy, because I have gained a multitude of financial knowledge from it.
The not-so-old bills (any with the larger, off-center portrait) are adequately secure: They have the color-shifting ink (except the $5), the watermark, the security thread, and the micro-printing. Really, the only thing they're missing is the color (which isn't really a security feature, just one more thing that the counterfeiters need get right, making their job that little bit harder).
Personally, for the really old bills with the centered portrait (pre-1996 for the $100, pre-2000 for the $5 and $10), I'm okay with declining to take them right now. For the smaller denominations it probably doesn't matter, but a pre-1996 $100 or pre-1997 $50 has too high of a chance of being counterfeit.
It is, by the way, perfectly okay to refuse to take a bill that seems at all iffy. Some people misunderstand the "legal tender for all debts public and private" to mean that you can't refuse currency, but you can always refuse currency that you think might be counterfeit.
This year I quit my job and my husband and I opened our own shop. As of late, we stick much more closely to spending guidelines. I won't say we have a budget, as specific amounts aren't allocated to specific things. We do know how much money is available for work expenses, food, clothing, recreation, and so on. Our loose budget guides us on planning our spending, and allows us to splurge or tighten the reigns on spending as needed.
Most important for good budgeting: Be realistic when you set up your categories and amounts. If you set yourself up to fail, it does no good. Tracking spending over a month or two is best for knowing how much you're spending. Make sure to account for car insurance and other non-monthly expenses -- I divide these type of expenses out and save a little each month in ING. It took us about 3 years to actually budget 100%. Three things that have made us successful in budgeting are assigning bills to specific paychecks so the money is there when the bill arrives, using ING Direct subaccounts for car insurance, pest control, etc., and having a second budget, so to speak, after all of our bills and regular savings are subtracted. Gas, food money and entertainment are much easier to budget when you don't have to track all the other bills quite so closely.
I do budget - and I think I do it effectively, to partially answer your question. I track my spending against set amounts for the month (on GoogleDocs) and when I go over in any category, I have to take it out of the amount I earmark each month for savings. Budgeting, to me, is making sure all my bills are paid and I'm saving towards goals. While there might be some thoughtless use of monies, most of it is thoughtful (even if it's automatedly thoughtful!).
Most months there's some taking from Peter's sub-account to pay Paul's sub-account...but the benefit is that I can see where I'm overspending consciously whereas if I *weren't* tracking/budgeting, I'd never be able to examine why such chunks of change go missing. Now I know I overshop on groceries and throw out (aka compost) a lot of food. And now I can correct that when I'm standing at the food coop, vs not knowing at all. No, I don't need anything not on my list.
My budget consists of monthly "operational budget" stuff (eating out, groceries, cat supplies, laundry, house stuff, entertainment, misc.) and then I have rolling subaccounts for clothes, gifts, donations, annual fees/taxes/CSA/record fair, vacation, hair salon, cats' vetting and regular ol' savings that I take from as I need it.
Generally I'm about $100 off (in the red! of course!) off my "operational budget", so I save $100 less than I'd planned. This month is the first month it's looking like I'm going to break even! Woo!
If anyone bothered to do research before buying into the fact that VPI is the largest pet insurer (and heavily marketed), they would read all the mixed reviews on their payouts. http://www.petinsurancereview.com/reviewStart.asp
I went with PetPlan for my dog and couldn't be happier with their service. They paid out exactly as I expected (100% after my $200 deductible) for a $900 fractured tooth surgery that my dog had.
I think pet insurance for me is worth it for big emergencies - that's why I went with the $200 deductible... Lowers the cost of my premium, and I don't mind paying for the little things.
I'd love to read this book. I'm going to be needing to make a big purchase in the next year and could really use help finding a budget that works for me that I can stick with so I can track my spending and cut where I can and save money. I've tried budgeting in the past with several different styles and nothing has stuck with me, yet.
I track my expenses in GnuCash, then plot my monthly income and expenses (similar to the methods in Your Money or Your Life). As long as the average difference between those two, i.e. my savings, is "enough", I don't worry about budgeting. However, if my expenses start to creep up or my income changes, I have this tracked data that I can use to inform adjustments to my spending.
I budget using Mvelopes. It is a little difficult to use at times, but I'm getting used to it. I do love building up my accounts and then paying my bills, rather than just paying them as they come in. I can definitely see where my money is going to. It also keeps me in check.
I created a spreadsheet at the beginning of the year with multiple spending categories (gas, food, shop, entertainment, etc) and put a threshold values for each. I recorded my transactions diligently and found out that I'm over the budget for some categories but under on others. Then I look at why and how I went over the budget for certain categories and try to cut down the costs for next months and so on. So far, it has worked out nicely but I still spend more than I anticipated at the beginning of the year. I hope to keep up with this and make changes for next year to save up more so I can travel more!
I've got a budget, and I try to stick to it (the online program I use allows me to keep track of my status). Sometimes though I'll be super low in one category but really high or over in another. My mom taught me the importance of a budget, and she's who inspired me to make one. I think now that I'm moving and in a transition period, I might need to tweak my budget though.
i do have a blog post written about it http://www.carrieactually.com/interest-personal-data-collection-check-mi...
i keep my budget very flexible. basically as long as i spend no more than 75% of my take home pay i'm in good shape.
one day i realized that when i hang out with my friends sometimes we go see movies, sometimes we eat out, and sometimes we shop. in a strict budget those would all come out of different budgeted categories, but for me they're all spending on the same thing (socializing with friends) so that made me decide that the categories don't matter as much as the total
I'd like to win a copy of this book because I need a better (simple and positive reinforced) understanding of my finances. I am seeking tutorials that actually work. Thank you for the opportunity!
It's good to find another success story! I'm a just-starting-out p.f. blogger, focused on getting out of debt AND finding peace with my situation in life. I think it's important to make that personal happiness or serenity part of the bigger picture. I think it's perfectly realistic to think that financial security and having fewer things (especially when you don't need them) will make me happier.
What's unrealistic is thinking having more money will automatically make you happier - it's what you do with it that counts, and how you feel about yourself at the end of the day!
I'll be sure to check out your blog, too!
Setting up a budget really helps you see where your money is going, and where you can save money. I do keep a budget, but will be flexible with it from month to month depending on expenses.
Do I NEED this or do I WANT this is always a question I ask myself. If it's a want, make a plan, and then buy it LATER.
Using the cash envelope system helps, food, entertainment, gas. I tend to be more mindful on what I buy when using cash vs. credit/debit card. When the cash is gone, it's gone.
General framework! I sat down a few months ago and worked out in a spreadsheet the percentages of my income I'm spending on:
+housing (rent, electric, water, cable)
+transportation (bus pass)
+retirement savings (403b, Roth IRA)
+other - this category is huge!
And I was happy with the numbers. Should redo it since I just opened a savings account this weekend and set up automated savings!
That is why I do couponing! I figure I can buy more things and the average of all those cheaper if I use coupons. My grandma always said..."never pay full price".
All honestly not many people do follow a budget. Budgets are a good tool but its hard to include in a budget expenses that come up. Like a car repair, someone going to the hospital, things of that nature.
Hyperinflation is definitely something the U.S. needs to avoid. We want America to come out of this recession stronger and more resilient than ever, and hyperinflation is definitely something that could destroy that. That, and if the public doesn’t start putting money into local resources instead of national, monopolizing chains. We have to think different to be different!
My husband and I were inspired to create a budget spreadsheet after reading the book 'Your Money or Your Life'. We had an informal budget before that, but a few years ago we created comprehensive budget spreadsheet from scratch, and track every penny we spend. We have numerous specific categories for all spending areas and even have gauge widgets for each category. As we track throughout each month, the gauges read green, yellow or red to let us know if we are getting close to our maximum for the month. It's been our most important tool to help trim the fat from our budget, and a real eye opener.
It has been a work in progress, and it took a lot of time to set up. But now it only takes about an hour a month to update. In addition to the spreadsheet, we have a monthly meeting we affectionately call our 'financial summit' to review our budget and how we are tracking to meet our financial goals. I would consider this our most important step towards financial independence.
More important than setting up a budget is the monitoring of your performance against your budget month to month. What it takes to be most successful in budgeting is diligent monitoring, before the end of the month if possible (credit cards, ATM withdrawals, cell phone minutes) or soon after the end of a billing cycle (water, phone, electricity). When you know your variance and you know where to change planned values or where to add buffer (or when for cyclical patterns) you'll have much more success in directing your money and knowing how much money you have left over for wants or more strategic goals.
For me it works better to work within a loosely-structured budget. I don't like to be bossed around—even by myself. That said, the parts of my budget that ARE structured (bills, rent, gas) are constant. Everything else falls under "spending money." I give myself an allowance every week. I pay for everything in cash, including groceries, eating out, gifts, and any other variable expenditure. It works well. I have been sticking to this budget for almost five years. Paying for things in cash makes me hold myself accountable. If I decide to splurge on something, that means I have to cut back in other areas. So, if I go out to dinner one night, I have to eat at home the next. It's fair.
JB,
I think the idea is not only to avoid the extra bag at the airport, but also having to carry it once you reach your destination.
Also, you say that FedExing is cheaper. Really? Since when can we overnight (or even slower) a 50 lbs. bag for $25 or less? which is what the airline charges per piece of luggage.
I follow an extremely tight budget that is kept on an Excel spreadsheet. There are line items showing the dollar amount dedicated to every single thing I spend each month: mortgage, car payment, insurance, groceries, gas, etc. Then there are separate tabs to track what I actually spend on a weekly basis. For instance, my monthly grocery budget is $400. Each week, I enter what I actually spend at the grocery. At the end of the month, whatever total is below $400 goes to savings, in addition to the regularly scheduled monthly amount. No matter, I never go over the dollar amounts budgeted for each category, because I simply can’t afford to.
It took a tragedy for me to get to the point where I follow a budget religiously. I am thankful for that tragedy, because I have gained a multitude of financial knowledge from it.
The not-so-old bills (any with the larger, off-center portrait) are adequately secure: They have the color-shifting ink (except the $5), the watermark, the security thread, and the micro-printing. Really, the only thing they're missing is the color (which isn't really a security feature, just one more thing that the counterfeiters need get right, making their job that little bit harder).
Personally, for the really old bills with the centered portrait (pre-1996 for the $100, pre-2000 for the $5 and $10), I'm okay with declining to take them right now. For the smaller denominations it probably doesn't matter, but a pre-1996 $100 or pre-1997 $50 has too high of a chance of being counterfeit.
It is, by the way, perfectly okay to refuse to take a bill that seems at all iffy. Some people misunderstand the "legal tender for all debts public and private" to mean that you can't refuse currency, but you can always refuse currency that you think might be counterfeit.
This year I quit my job and my husband and I opened our own shop. As of late, we stick much more closely to spending guidelines. I won't say we have a budget, as specific amounts aren't allocated to specific things. We do know how much money is available for work expenses, food, clothing, recreation, and so on. Our loose budget guides us on planning our spending, and allows us to splurge or tighten the reigns on spending as needed.
Most important for good budgeting: Be realistic when you set up your categories and amounts. If you set yourself up to fail, it does no good. Tracking spending over a month or two is best for knowing how much you're spending. Make sure to account for car insurance and other non-monthly expenses -- I divide these type of expenses out and save a little each month in ING. It took us about 3 years to actually budget 100%. Three things that have made us successful in budgeting are assigning bills to specific paychecks so the money is there when the bill arrives, using ING Direct subaccounts for car insurance, pest control, etc., and having a second budget, so to speak, after all of our bills and regular savings are subtracted. Gas, food money and entertainment are much easier to budget when you don't have to track all the other bills quite so closely.
I do budget - and I think I do it effectively, to partially answer your question. I track my spending against set amounts for the month (on GoogleDocs) and when I go over in any category, I have to take it out of the amount I earmark each month for savings. Budgeting, to me, is making sure all my bills are paid and I'm saving towards goals. While there might be some thoughtless use of monies, most of it is thoughtful (even if it's automatedly thoughtful!).
Most months there's some taking from Peter's sub-account to pay Paul's sub-account...but the benefit is that I can see where I'm overspending consciously whereas if I *weren't* tracking/budgeting, I'd never be able to examine why such chunks of change go missing. Now I know I overshop on groceries and throw out (aka compost) a lot of food. And now I can correct that when I'm standing at the food coop, vs not knowing at all. No, I don't need anything not on my list.
My budget consists of monthly "operational budget" stuff (eating out, groceries, cat supplies, laundry, house stuff, entertainment, misc.) and then I have rolling subaccounts for clothes, gifts, donations, annual fees/taxes/CSA/record fair, vacation, hair salon, cats' vetting and regular ol' savings that I take from as I need it.
Generally I'm about $100 off (in the red! of course!) off my "operational budget", so I save $100 less than I'd planned. This month is the first month it's looking like I'm going to break even! Woo!
And in fact, I recently posted about how I don't think I'll ever be able to be "budget-free". http://jesseanneo.blogspot.com/2010/08/i-am-not-to-be-trusted.html
If anyone bothered to do research before buying into the fact that VPI is the largest pet insurer (and heavily marketed), they would read all the mixed reviews on their payouts. http://www.petinsurancereview.com/reviewStart.asp
I went with PetPlan for my dog and couldn't be happier with their service. They paid out exactly as I expected (100% after my $200 deductible) for a $900 fractured tooth surgery that my dog had.
I think pet insurance for me is worth it for big emergencies - that's why I went with the $200 deductible... Lowers the cost of my premium, and I don't mind paying for the little things.
Just knowing that we have a budget keeps my spending down, because I don't want to keep track of too much information!
I'd love to read this book. I'm going to be needing to make a big purchase in the next year and could really use help finding a budget that works for me that I can stick with so I can track my spending and cut where I can and save money. I've tried budgeting in the past with several different styles and nothing has stuck with me, yet.
"There is no free solution to credit score monitoring."
Credit Karma ain't bad. It's the Transunion score instead of the FICO score, but pretty close.
I track my expenses in GnuCash, then plot my monthly income and expenses (similar to the methods in Your Money or Your Life). As long as the average difference between those two, i.e. my savings, is "enough", I don't worry about budgeting. However, if my expenses start to creep up or my income changes, I have this tracked data that I can use to inform adjustments to my spending.
I budget using Mvelopes. It is a little difficult to use at times, but I'm getting used to it. I do love building up my accounts and then paying my bills, rather than just paying them as they come in. I can definitely see where my money is going to. It also keeps me in check.
I created a spreadsheet at the beginning of the year with multiple spending categories (gas, food, shop, entertainment, etc) and put a threshold values for each. I recorded my transactions diligently and found out that I'm over the budget for some categories but under on others. Then I look at why and how I went over the budget for certain categories and try to cut down the costs for next months and so on. So far, it has worked out nicely but I still spend more than I anticipated at the beginning of the year. I hope to keep up with this and make changes for next year to save up more so I can travel more!
I've got a budget, and I try to stick to it (the online program I use allows me to keep track of my status). Sometimes though I'll be super low in one category but really high or over in another. My mom taught me the importance of a budget, and she's who inspired me to make one. I think now that I'm moving and in a transition period, I might need to tweak my budget though.