| Author | Content |
robbilyn
Lincoln, NE
(Zone 5a)
February 19, 2007
11:53 AM Post #3204954
| What do you use to budget your money? There are so many systems out there what has worked for you? |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 19, 2007
03:18 PM Post #3205582
| Basic old pencil and paper.
List EVERYTHING you put out money for, and the pay dates (don't forget things like dry cleaning, short-term svgs., vacation svgs., Emergency fund, lunch money, Entertainment/Weekend Splurges, etc.. List how much you BRING HOME.
Once you have an exhaustive list of what you pay out, You'll figure out how much needs to be divvied into each category.
I LOVE doing home budgets. Could do them for hours. |
fleursdefouquet
Ferndale, AR
(Zone 7b)
February 19, 2007
03:28 PM Post #3205613
| Robbilyn,
I was a single mom on a very tight budget for many years and agree with Gymgirl 100%. When listing those expenses, be very honest with yourself. If you underestimate what you really need to pay for gas, groceries, entertainment, etc. you only cheat yourself - then have to make it up somewhere else! My system was to identify when all bills were due - 1st 1/2 of month or 2nd 1/2 of month. As soon as I was paid on the 1st, I wrote checks for those due the 1st half and the same for the 2nd 1/2. They may not be mailed until later (wrote the date on the outside of the envelope), but I wrote the checks and deducted that amount from my checkbook. Bills always came first then, if and ONLY IF there was anything left over did I spend on extras. Treat savings like a bill - pay it first before extras, too!
Good luck!
Debra |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 19, 2007
04:48 PM Post #3205876
| Try the 80/20 rule.
Calculate 80% of your take home pay. This is what you will LIVE on and work your budget from. Take that other 20% off the top and divide it in half: 10% goes into your LONG-TERM savings. The other 10% is your TITHE/GIVING.
I discovered this rule 5 years ago, and have learned to live within the 80%. The other 20% isn't even missed now, however it CONTINUES to work for me in that I am saving 10% and God is blessing me abundantly because I honor Him with 10%! Try it. It may seem tough to scale back to living within the 80% at first, but trust me, you will find yourself with more money than you know what to do with. I have a story about my sister who tried this and ended up with so much money left over she thought she had done something wrong. And then her daughter who was in college called me to ask if her mother was doing something illegal, because all of a sudden the daughter was getting more money for college expenses and didn't know where the money was coming from! It was there all along. God simply multiplied it! |
robbilyn
Lincoln, NE
(Zone 5a)
February 21, 2007
11:18 AM Post #3211359
| I like that Gymgirl! We are using the Mvelopes system with Crown Financial but my husband makes pretty good money so we can get away with doing whatever we like with our money. We really want to get out of debt but as you can see we don't have a "plan". My husband gets bonuses every quarter so we have be using that to send to debt but I feel like that kind of cheating and not finding other ways to pay the debt. We do give to the Lord on a regular basis and we need to honor him by getting out of debt. So I guess we could learn to live on 80% and put that money towards debt... |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 21, 2007
01:14 PM Post #3211680
| Robbilyn,
If you guys
| Quoted: | | make pretty good money and can get away with doing whatever you like with your money |
I DEFINITELY recommend the 80/20 Rule for you. And, since you have so MUCH discretionary income, I'd modify the 80/20 to 70/30. Try living on 70%. Put 10% in savings. 10% for Tithing/Giving. The remaining 10% to pay down the debt (in ADDITION to what you already are paying on your debt). This should get you out of the money pit poste haste!
Let me know how your calculations pan out. Hope this is a helpful suggestion! Godspeed!
Linda
This message was edited Feb 21, 2007 12:14 PM
This message was edited Feb 21, 2007 12:25 PM |
robbilyn
Lincoln, NE
(Zone 5a)
February 22, 2007
10:45 AM Post #3214345
| Thanks Linda! As I look at what I said ...Hmmm...I think even when we "think" we have "extra" money to do what we want we really are in denial of our "true" financial health. We have alot a credit card debt and we really shouldn't be doing anything thing with our money but focusing on getting out of debt. |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 22, 2007
10:52 AM Post #3214363
| What's "a lot" of debt? |
robbilyn
Lincoln, NE
(Zone 5a)
February 22, 2007
02:42 PM Post #3214967
| We have three credit cards. Two with 7,000 and the big one at 17,000. We have since November paid 12,000 on other credit cards and this is what is left. We have been taking quarterly bonuses to pay them off...so again I feel that is kind of cheating since were not cutting back as we could. We did put three of our children in private school the first of the year which is over a thousand a month so this will slow down our progress on the credit card debt. |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 22, 2007
03:46 PM Post #3215090
| Yep. You've got debt. Stay the course, and resolve to pay down the debt, before you make any unnecessary, additional credit card purchases. You might even put thecards in a safe deposit box for a time. Use cash for any emergency purchases you might have to make. |
gillibean
Moose Factory, ON
(Zone 2b)
February 23, 2007
12:08 AM Post #3216585
| We used to use an envelope system. For the past year we've taken out a specified amount on the 15th of every month. We each get our personal 'allowance' and the rest is for all of our purchases. We live in a very small and remote place where there are only 3 stores anyway so it's not like we have a lot to buy. The biggest help with this is that I've made a 4 week rotating meal plan. I still have to tweak it a bit but it's working really well. Now I buy the food that I know we need, not the food that I think we might need. Saturdays are always leftover day.
I also have a small home business. All money from it goes into a separate bank account. This is money that is for short-term savings. We don't really touch it but we know that it's available and using it won't affect our lon-term savings account.
The one area for which we need to get a better system is online buying. Because we're so remote, there are a lot of things that are only accessible online. We usually have a big list of things to stock up on when we go to a city in the summer, or sometimes around Christmas. However, with three kids to cart, and the hassle of loading and unloading everything from a train, taxi and boat to get it home, we usually resort to online shopping. I do try to be careful though. I've realized the importance of setting a firm limit on how much I'm allowed to spend. I also like to take my time to consider whether something is really needed or do I just want it. |
robbilyn
Lincoln, NE
(Zone 5a)
February 23, 2007
12:55 PM Post #3217698
| We've cut up and cancelled all credit cards!
I think I need to go to the envelope system...The money is gone and you can't spend anymore...what a concept!!!! |
Gymgirl
SE Houston (Hobby), TX
(Zone 9a)
February 23, 2007
03:44 PM Post #3218143
| Yeah, some people respond better to a visible than a concept... |
Frugalfrog
Elkhart, IN
February 28, 2007
08:53 PM Post #3236009
| gillibean, would you mind sharing your 4 week rotating meal plan? |
gillibean
Moose Factory, ON
(Zone 2b)
February 28, 2007
11:05 PM Post #3236410
| It took quite a bit of space. I posted it in the cooking forum because it seemed like it fit better there. Here's the link. If you have any questions or suggestions let me know. This plan is working better than anything else I've tried.
http://davesgarden.com/place/t/697672/
This message was edited Feb 28, 2007 11:06 PM |
Frugalfrog
Elkhart, IN
March 01, 2007
07:10 PM Post #3238832
| Thanks so much. I already checked it out. |
vs71099
Osage City, KS
(Zone 5b)
April 20, 2007
07:01 PM Post #3413964
| Envelope System... it is a life saver and a budget saver for me... I paid off over 30,000 in debts doing the evelope system...
Dave Ramsey Certified Counselor and WorkPlace Trainer |
brr9270
Hanover, VA
April 23, 2007
10:19 AM Post #3421909
| I am also following the Dave Ramsey system. I am on my second month of budgeting and using an envelope system. I will say I think it is going to take a month or two more to get the budget where it needs to be, but what a difference a few months makes. I truly never knew where all our money was going, until I started tracking it for a few months! Wow, we have not been very resposible with what we havebeen blessed with. |
wildgardengirl
Gregory, MI
May 07, 2007
11:28 AM Post #3472707
| I second your thoughts brr9270 - I figured out that I have not been very responsible with my blessings either. Hubby and I went through Dave Ramsey's FPU just recently - and boy was that an eye opener! To see how much we were "wasting" each month on debt - eeek!!! I've got a bit of a modified 80/20 rule going now (not quite enough extra right now to do 10% to savings - but 10% for sure goes to Tithe!) and all of Dave R's teachings to help me along. I track our spending very carefully now, and I think we've been doing a lot better these last few months. |
TurtleChi
Danville, VA
(Zone 7a)
September 04, 2007
12:35 AM Post #3934837
| Who is Dave Ramsey? and what is the envelope thing? I use to put all my bids in paper cups when we were first married... then when bills were due you took the cup to the bank... Is this kind the same..
Susan |
wildgardengirl
Gregory, MI
September 05, 2007
12:21 PM Post #3940092
| Yes, Susan51 - your paper cup idea sounds similar to the envelope system. The idea is to take your income and your budget and set aside cash - $X for Groceries, $X for Gas, $X for Clothes, etc, etc - each month in an envelope - and that is ALL you can spend on those items each month. If the envelope is empty by the end of the second week then either you need to rethink your budget (because you didn't allocate enough $) or you are simply just overspending and need to learn to cut back.
Dave Ramsey is a financial guru with a lot of common sense ideas about how to budget and use your money wisely in order to get out of debt, stay out of debt, and start to build wealth. He has a website (www.DaveRamsey.com) you could check out to learn more. A lot of people here really love his system, some of us could go on and on for hours about what we've learned and how we've saved by following the Steps he recommends!!! |
cathy4
St. Louis County, MO
(Zone 5a)
September 05, 2007
12:30 PM Post #3940129
| Interesting that someone is teaching the method my parents have used for the last 65 years, the envelope method. They taught friends, too, when asked how they managed to save for vacations, etc. despite living frugally. The are now very well off because not a dime has ever been paid for charge card interest, and they only bought what they had saved for, except for emergencies, and you better be bleeding, or it wasn't an emergency! LOL. Cathy
|
dylancgc
Mount Vernon, MO
(Zone 6b)
January 29, 2008
01:01 PM Post #4469459
| Hi Cathy4, I see you popping up all over DG. Good to see you are still around. Planted your seeds yet?
Peggy |
Jo_in_Tx
Sugar Land, TX
April 03, 2008
10:10 PM Post #4753826
| Staying out of plant nurseries would help a lot.
:)
Jo |
dylancgc
Mount Vernon, MO
(Zone 6b)
April 08, 2008
09:27 AM Post #4775370
| That is why we do seeds. A packet of seeds for 1.49 and have 40-50 plants vs 4.95 to 15.00 for 1 plant. If we swap amongst our selves you get thousands of plants for the cost of 10 stamps. |
AZchic
Tucson, AZ
April 18, 2008
02:15 PM Post #4827751
| I've used the Dave Ramsey system and it has been a godsend! |
art_n_garden
Colorado Springs, CO
(Zone 6a)
April 29, 2008
01:56 PM Post #4882585
| So, for the envelope system...you take out cash at the beginning of the month and put it in the envelopes? I would be scared to have that much cash (lol not really that much) laying around the house. Does it make any of you nervous?
I think I will try it, we are having some budgeting problems at my house. I have always used the good ol' pencil and paper method, but it doesn't help when my savings and cc and checking accounts are all connected. I was way better off before online banking. |
