Let's talk Personal Finances. How many of you guys budget? (1 Viewer)

[gray]

Due to a combination of life circumstances and foolish spending, my wife and I are currently in a significant amount of credit card debt :facepalm:

We finally decided to turn things around and aggressively cut our spending in order to pay it all off, so I started hunting for the best budgeting software and ended up choosing one called YNAB (You Need A Budget).

It seems a bit pricey at first ($60), especially considering we're trying to save money, but the budgeting philosophy that the software dictates is revolutionary and has finally made me feel like I'm in control of my finances. It forces you to only budget money that's immediately available so you're never spending money that you don't have yet, which is what I always used to do. There's also an iPhone/Android app that you can use to track your expenses. I never thought I'd say this, but I'm actually finding budgeting fun. I seriously recommend you check this program out if you're having trouble saving or paying off debt.

We used to have a budget of sorts but it was just an Excel spreadsheet where we simply forecast our monthly expenses and we weren't doing any kind of tracking in terms of where our money was actually going, so we ended up overspending and under-budgeting.

After punching in the figures and working out a gameplan, we've already seen a big swing and there's hope in sight.

Just thought I'd share my experience and ask you guys how you manage your personal finances!

P.S. if you're interested in buying the software, use my referral link. You save $6 and I get $6! http://ynab.refr.cc/4R96QP6

 

Buy on AliExpress.com

[Zacheryah]

I've done something simular on my own in excell to get an idea of my fixed monthly expenses, and set a budget for the other stuff.

Was handy when i went back to study in 2009 cause my monthly fee was a fraction of my wage when i worked

 

[swag]

I'm wired differently. I never spend all that much, except for a few odd indulgences. (Juventus? ) Since that's worked out where my net positive is better than my negative, there's been little need to do much more.

We could do things like set financial goals x years out to do this or that. But we have no kids, we own our own home (two of them, actually), and I'd rather operate on budget instincts than to have to check an app or some spreadsheet to know if I've outspent my "allowance" or not.

We're lucky enough to have the luxury to do that, and I've had to live on tight budgets before (grad school). But it turns out that I'm not much of a consumer and I always tend to skimp more than I need to, so it works out in the end. I always know my own financial compass keeps me well on the saving side.

 

[Hust]

I've used a couple of different software that I didn't like so here is what I did...


Leave my Credit Cards at home. Bring my debit card only so I can only spend a set amount.

I actually got so good at it, when I went on vacation all credit cards had expired dates and I couldn't use them, just my debit. WALLA!!

 

[X Æ A-12]

I've used a couple of different software that I didn't like so here is what I did...


Leave my Credit Cards at home. Bring my debit card only so I can only spend a set amount.

I actually got so good at it, when I went on vacation all credit cards had expired dates and I couldn't use them, just my debit. WALLA!!

im sure a lot of other women have to do the same.

 

[Bjerknes]

I think the benchmark folks want to use in terms of savings is 20% of their income. I know, that number might not sound realistic for everyone, but it is possible. You simply have to cut out what you don't absolutely need and find a cheaper alternative for whatever it is you were purchasing. 20% gives you enough split between a savings account and emergency funding in case you are hit with an adverse event (such as job loss, medical disaster, or housing/car repair).

We blew all of our savings and then some on our wedding and honeymoon. After the point of realization that this actually happened, we went into elimination mode. So, we found areas of our expenses we could eliminate by either finding cheaper alternatives, or by cutting the bill outright. After all was said and done, we saved about $60 per month in television bills, $70 per month in cell phone expenses, and $20 per month in electric. Sure, I won't be able to watch as many matches as before, but paying off debt is more important than watching football.

Once you make the cuts, it's really not as bad as you'd think. Eventually you will have enough left for discretionary spending that will pave the way for more financial security in the future. The problem we face, though, is that your savings can be obliterated by inflation, so you would need to diversify those savings into other avenues, such as mutual funds, commodities, land, other currencies, or even gold. Sure, a lot of people had tons of savings under their mattress in Weimar but eventually it didn't amount to anything. And if people say that you're safe, definitely look the other way, be a contrarian.

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I think the benchmark folks want to use in terms of savings is 20% of their income. I know, that number might not sound realistic for everyone, but it is possible. You simply have to cut out what you don't absolutely need and find a cheaper alternative for whatever it is you were purchasing. 20% gives you enough split between a savings account and emergency funding in case you are hit with an adverse event (such as job loss, medical disaster, or housing/car repair).

We blew all of our savings and then some on our wedding and honeymoon. After the point of realization that this actually happened, we went into elimination mode. So, we found areas of our expenses we could eliminate by either finding cheaper alternatives, or by cutting the bill outright. After all was said and done, we saved about $60 per month in television bills, $70 per month in cell phone expenses, and $20 per month in electric. Sure, I won't be able to watch as many matches as before, but paying off debt is more important than watching football.

Once you make the cuts, it's really not as bad as you'd think. Eventually you will have enough left for discretionary spending that will pave the way for more financial security in the future. The problem we face, though, is that your savings can be obliterated by inflation, so you would need to diversify those savings into other avenues, such as mutual funds, commodities, land, other currencies, or even gold. Sure, a lot of people had tons of savings under their mattress in Weimar but eventually it didn't amount to anything. And if people say that you're safe, definitely look the other way, be a contrarian.

 

[gray]

I'm wired differently. I never spend all that much, except for a few odd indulgences. (Juventus? ) Since that's worked out where my net positive is better than my negative, there's been little need to do much more.

We could do things like set financial goals x years out to do this or that. But we have no kids, we own our own home (two of them, actually), and I'd rather operate on budget instincts than to have to check an app or some spreadsheet to know if I've outspent my "allowance" or not.

We're lucky enough to have the luxury to do that, and I've had to live on tight budgets before (grad school). But it turns out that I'm not much of a consumer and I always tend to skimp more than I need to, so it works out in the end. I always know my own financial compass keeps me well on the saving side.

I guess we felt it necessary to track every cent because of the dire situation in which we currently find ourselves. Once the debt is paid off and we can start saving and loosen the reins a little.

Also we're on a single income and looking to have kids in the next couple of years, so I think our fiscal flexibilities differ somewhat

I think the benchmark folks want to use in terms of savings is 20% of their income. I know, that number might not sound realistic for everyone, but it is possible. You simply have to cut out what you don't absolutely need and find a cheaper alternative for whatever it is you were purchasing. 20% gives you enough split between a savings account and emergency funding in case you are hit with an adverse event (such as job loss, medical disaster, or housing/car repair).

Our plan is to shoot even higher than 20%! At the moment we're going scorched earth mode, cutting our expenses as much as possible, then cutting some more. I really don't miss much in terms of luxuries and I find myself more and more disgusted by the consumer culture we've been spoonfed, so I think I'd be fairly happy to continue living quite frugally and putting some money into investments. The plan is to not have to rely on credit at all, because I'm done with it.

And if people say that you're safe, definitely look the other way, be a contrarian.

Amen to that.

As I've studied and implemented various financial planning strategies and spoken about this stuff with my friends, it's become apparent that people generally don't have the slightest clue about managing their finances, and being up to your eyeballs in debt is normal. Of course was once included in that group, but now I'm trying to do something about it!

 

[Nzoric]

I suck hard at personal finances. I'm in some debt (not huge, but I shouldn't be in any). I made a plan for how I'll try and work it out, sat down and figured out how much is enough for me for bills, spending, cigarettes etc. I'll withdraw that cash once payday comes, divide it into envelopes and leave my credit card at home. I'll put all the bills from my purchases in those envelopes and hopefully that will give me a clearer idea of where my cash goes. Once I have the figured out I can try figuring out how to cut it.

 

[gray]

I suck hard at personal finances. I'm in some debt (not huge, but I shouldn't be in any). I made a plan for how I'll try and work it out, sat down and figured out how much is enough for me for bills, spending, cigarettes etc. I'll withdraw that cash once payday comes, divide it into envelopes and leave my credit card at home. I'll put all the bills from my purchases in those envelopes and hopefully that will give me a clearer idea of where my cash goes. Once I have the figured out I can try figuring out how to cut it.

Funny you should mention the envelope system, because YNAB is pretty much a digital version of that.

Keep it up! Sounds like you're on the right track.

 

[icemaη]

I have been using Eqonomize on Linux for about two years now. I have used other (free/trial) softwares, but always got back to Eqonomize. It's a desktop only software, so there's the con. It works off a CSV file, so making an android app isn't much of an issue. Maybe some day I'll attempt it

 

[Nzoric]

Funny you should mention the envelope system, because YNAB is pretty much a digital version of that.

Keep it up! Sounds like you're on the right track.

Thanks.

It all sounds good in theory, but my real issue - and I've known this for years now - is that I (together with almost every person I go out with in the weekends) have a built in "fuck it" switch which is activated by alcohol. So If I go out with, say, 50 bucks and I run dry - someone will just say "doesn't matter, you make up for it next friday". It's always circa and it makes for great relationships where money doesn't really matter, we have fun. I like this Balkan way of going out, but it basically renders and saving impossible as you will step out of that circle if you start counting your chips.

 

[gray]

you will step out of that circle if you start counting your chips.

Maybe that's the price you pay

I had to tell my friends that I couldn't eat out at restaurants whenever we wanted anymore, but fortunately they're awesome friends so we go to someone's house and cook up a storm.

 

[Nzoric]

Maybe that's the price you pay

I had to tell my friends that I couldn't eat out at restaurants whenever we wanted anymore, but fortunately they're awesome friends so we go to someone's house and cook up a storm.

Yeah. I have loads of black spots in my memory over the past 5 years so it might be a good time to step out a bit. We'll work something out, I can always cut down on my food budget if necessary. Moar tuna.

 

[gray]

I have been using Eqonomize on Linux for about two years now. I have used other (free/trial) softwares, but always got back to Eqonomize. It's a desktop only software, so there's the con. It works off a CSV file, so making an android app isn't much of an issue. Maybe some day I'll attempt it

Sounds interesting. Is Eqonomize primarily used for budgeting or accounting?

 

[Sheik Yerbouti]

Man, you guys seem really bad at managing your finances. Lucky for me, I'm like Greg where I don't usually spend all that much except on things I really need. I was wary of the dangers of a credit card, so I only used it as a means of spending and not the source. That along with always paying my credit card bills in full helped me stay out of debt. I naturally end up saving more than I spend, so: don't even need to worry about a budget.

Also, my social life is non-existent, which helps reduce the expenses.

 

[icemaη]

Sounds interesting. Is Eqonomize primarily used for budgeting or accounting?

Primarily it's an accounting software. It does allow you to budget, but it feels like an afterthought. I don't really budget, but I like to see where I'm spending all that money It started with me switching jobs, making more than I did in the previous gig and still ending up with a near zero bank balance at the end of the month. I still end with nothing in the bank account, but at least now I know where it's all going

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Man, you guys seem really bad at managing your finances. Lucky for me, I'm like Greg where I don't usually spend all that much except on things I really need. I was wary of the dangers of a credit card, so I only used it as a means of spending and not the source. That along with always paying my credit card bills in full helped me stay out of debt. I naturally end up saving more than I spend, so: don't even need to worry about a budget.

Also, my social life is non-existent, which helps reduce the expenses.

It helps when you are living with family. Once you move on your own, it gets a bit more difficult.

 

[Nzoric]

I racked up -3500 euros while living at home and receiving a scholarship :S

 

[Sheik Yerbouti]

It helps when you are living with family. Once you move on your own, it gets a bit more difficult.

Meh, then I'll never move on my own. Seems like a stupid decision financially.

 

[Nzoric]

Meh, then I'll never move on my own. Seems like a stupid decision financially.

Might do something about the social issues though.

 

[icemaη]

Meh, then I'll never move on my own. Seems like a stupid decision financially.

Might do something about the social issues though.

This.