Comments on: Money Poll #1: Budgeting http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/ personal finance tips, tricks, and commentary Sun, 22 Nov 2009 04:49:32 -0500 http://wordpress.org/?v=abc hourly 1 By: mb http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-124270 mb Sun, 14 Sep 2008 02:06:58 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-124270 I more or less aim for the 60% solution from msn.com, although its altlered considerably for me. http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/ASimplerWayToSaveThe60Solution.aspx I more or less aim for the 60% solution from msn.com, although its altlered considerably for me. http://articles.moneycentral.m.....ution.aspx

]]> By: EC http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1995 EC Sat, 25 Feb 2006 16:56:49 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1995 We're kind of using the envelope method without the envelopes, which kind of comes close to saving first and then letting the chips fall. Our checks are direct deposited, into two checking accounts. One checking account is for groceries and my walking around money. DH gets his WAM in cash. Then money goes into various savings accounts out of the main checking account for large/infrequent bills, Christmas, goals and emergencies. What's left is for monthly bills. I had to do fiddle with an overall budget to make sure the right amounts are going everywhere. But now that it's set up, I feel free to spend whatever I have in the "grocery" account because I know it's not needed for anything else. Until something major happens (like a big increase in property taxes or something) we won't have to think in terms of budgets for awhile. We’re kind of using the envelope method without the envelopes, which kind of comes close to saving first and then letting the chips fall. Our checks are direct deposited, into two checking accounts. One checking account is for groceries and my walking around money. DH gets his WAM in cash. Then money goes into various savings accounts out of the main checking account for large/infrequent bills, Christmas, goals and emergencies. What’s left is for monthly bills. I had to do fiddle with an overall budget to make sure the right amounts are going everywhere. But now that it’s set up, I feel free to spend whatever I have in the “grocery” account because I know it’s not needed for anything else. Until something major happens (like a big increase in property taxes or something) we won’t have to think in terms of budgets for awhile.

]]> By: Blog Mike http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1975 Blog Mike Thu, 23 Feb 2006 21:14:59 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1975 I live at home, go to school, and work part time. So my budgeting is a lot smaller then everyone else's. I take home about $250-300 after taxes. I use Quicken and enter all of my recurring debts and whatever left over I pay off my credit cards (most spent on food/groceries). Each month goes something like this: (I get paid on Wednesday) February 2006 Wednesday 1st $100- Stock DRIP $120- Car Payment Wednesday 8th $150- Car Insurance/Cell Phone (Both paid to parents) $50- Car Payment Wednesday 15th $200- Car Payment $50- Pay Credit Cards Wednesday 22nd $250- Car Payment I never have carried a balance on a credit card and all I want to do right now is to pay off my car. So obviously I am putting most of my paycheck to that. After paying off my car I will be maxing out my Roth IRA. I live at home, go to school, and work part time. So my budgeting is a lot smaller then everyone else’s. I take home about $250-300 after taxes. I use Quicken and enter all of my recurring debts and whatever left over I pay off my credit cards (most spent on food/groceries). Each month goes something like this:

(I get paid on Wednesday)

February 2006
Wednesday 1st
$100- Stock DRIP
$120- Car Payment

Wednesday 8th
$150- Car Insurance/Cell Phone (Both paid to parents)
$50- Car Payment

Wednesday 15th
$200- Car Payment
$50- Pay Credit Cards

Wednesday 22nd
$250- Car Payment

I never have carried a balance on a credit card and all I want to do right now is to pay off my car. So obviously I am putting most of my paycheck to that. After paying off my car I will be maxing out my Roth IRA.

]]> By: Matt http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1956 Matt Thu, 23 Feb 2006 05:52:24 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1956 I've tried the "plan the month's expenses in advance" thing, and it totally doesn't work for me. I find myself rebelling against my own plans, and thus ultimately fighting myself. (The one sure way to guarantee that you'll lose is to fight yourself.) At this point, I simply plan the month's _recurring_ expenses in advance. (And yes, both short and long term savings and investments count as recurring expenses, for these purposes.) Every recurring transfer of funds out of ready cash (except for my rent, for which I have to write a paper check) is automatically transferred from my checking account or debit card on the 5th of the month. What's left is working cash for the month. I have a pretty good notion of when irregularly-recurring expenses are going to happen and how much they're going to cost, and I simply plan for them by adding contributions to one of my savings accounts. (It's seperate from long-term savings, since I know in advance that it will often be emptied out, which long-term savings never would be except in an emergency.) If one adopts the "pay yourself first" (automatic savings/investment at the beginning of every income cycle) methodology, it eliminates most of the need for a detailed budget (and, along with that need, the uncontrolled rage that some of us feel at the prospect of having to _follow_ a detailed budget...even one we write ourselves). I’ve tried the “plan the month’s expenses in advance” thing, and it totally doesn’t work for me. I find myself rebelling against my own plans, and thus ultimately fighting myself. (The one sure way to guarantee that you’ll lose is to fight yourself.)

At this point, I simply plan the month’s _recurring_ expenses in advance. (And yes, both short and long term savings and investments count as recurring expenses, for these purposes.) Every recurring transfer of funds out of ready cash (except for my rent, for which I have to write a paper check) is automatically transferred from my checking account or debit card on the 5th of the month. What’s left is working cash for the month.

I have a pretty good notion of when irregularly-recurring expenses are going to happen and how much they’re going to cost, and I simply plan for them by adding contributions to one of my savings accounts. (It’s seperate from long-term savings, since I know in advance that it will often be emptied out, which long-term savings never would be except in an emergency.)

If one adopts the “pay yourself first” (automatic savings/investment at the beginning of every income cycle) methodology, it eliminates most of the need for a detailed budget (and, along with that need, the uncontrolled rage that some of us feel at the prospect of having to _follow_ a detailed budget…even one we write ourselves).

]]> By: Colin http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1946 Colin Wed, 22 Feb 2006 18:18:13 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1946 My family used to do exactly the same thing you do - pay ourselves first and then let the chips fall with what is left. But we found over the course of last year that we were spending about $200 per month more than our income (the shortfall was deducted from our short term savings - we have no debt other than our mortgage). So this year we are trying something new - we pay ourselves first to cover all fixed expenses: mortgage, utilities, cable, taxable investments, Roth IRA, short term savings, etc. Then we spend what is left, not a penny more. Variable expenses is one large category - we don't break it out in categories such as groceries, eating out, gas, entertainment, etc. I've found that trying to budget for specific variable categories is a waste of time. Better to have one pot. My family used to do exactly the same thing you do – pay ourselves first and then let the chips fall with what is left. But we found over the course of last year that we were spending about $200 per month more than our income (the shortfall was deducted from our short term savings – we have no debt other than our mortgage). So this year we are trying something new – we pay ourselves first to cover all fixed expenses: mortgage, utilities, cable, taxable investments, Roth IRA, short term savings, etc. Then we spend what is left, not a penny more. Variable expenses is one large category – we don’t break it out in categories such as groceries, eating out, gas, entertainment, etc. I’ve found that trying to budget for specific variable categories is a waste of time. Better to have one pot.

]]> By: Jose Anes http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1935 Jose Anes Tue, 21 Feb 2006 20:25:04 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1935 Great idea! I budget my expenses over $30. However, I do not stick with a fixed budget. I just place them into Microsoft Money before I make them and study the effect they may have on my finances -- before making an educated decision. Great idea!

I budget my expenses over $30.

However, I do not stick with a fixed budget. I just place them into Microsoft Money before I make them and study the effect they may have on my finances — before making an educated decision.

]]> By: Emma http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1923 Emma Mon, 20 Feb 2006 19:49:35 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1923 we've been living on a written budget for the last 7 months and have paid off $15000 in debt (credit cards, personal loan, and vehicle). for those that don't have one, i highly recommend it. it's like that saying, "if you fail to plan, you plan to fail". cheers :) we’ve been living on a written budget for the last 7 months and have paid off $15000 in debt (credit cards, personal loan, and vehicle). for those that don’t have one, i highly recommend it. it’s like that saying, “if you fail to plan, you plan to fail”.

cheers :)

]]> By: Aaron http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1921 Aaron Mon, 20 Feb 2006 19:32:46 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1921 I don't budget. I simply try to spend as little as I can get away with, and I avoid recurring expenses like the plague. Gotta buy a car, pay cash. Phone bill, try to keep it fixed. Anything that's not a fixed cost, keep playing limbo to get it lower. I don’t budget. I simply try to spend as little as I can get away with, and I avoid recurring expenses like the plague. Gotta buy a car, pay cash. Phone bill, try to keep it fixed. Anything that’s not a fixed cost, keep playing limbo to get it lower.

]]> By: Brian http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1920 Brian Mon, 20 Feb 2006 18:54:01 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1920 I would have to say we take a similar approach. We have monthly saving targets we'd like to meet and consciously try to limit our spending in all areas. At the end of the month we'll put together a monthly review of our expenses and if something is out-of-whack we mentally concentrate on improving our performance in that area during the following month. I would have to say we take a similar approach. We have monthly saving targets we’d like to meet and consciously try to limit our spending in all areas. At the end of the month we’ll put together a monthly review of our expenses and if something is out-of-whack we mentally concentrate on improving our performance in that area during the following month.

]]> By: FMF http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/comment-page-1/#comment-1917 FMF Mon, 20 Feb 2006 14:31:05 +0000 http://www.fivecentnickel.com/2006/02/20/money-poll-1-budgeting/#comment-1917 Cool idea! Cool idea!

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