Home Budgeting...

[mmmmm...beer 691]

For those of you interested in a monthly budget, you should really check out "Every Dollar" on the app or apple store.  It's an electronic version of the Dave Ramsey zero based budget.  We've used it in the past and I works well if you stick to it.

After this last shutdown, my wife (also a fed) and I realized we are really not maximizing our income.  We have a little debt we need to wipe out and our fully funded emergency funs should have already been in place.  Well... we had a pretty good wake up call with the shutdown and are "getting after it" now.  This last shutdown shouldn't have even made us blink, but it did.

We downloaded the app (you can also sync a version on your laptop or home comp), worked up our February zero based budget and we're off to the races starting with our paychecks this week. 

I know there are other options out there as well, YNAB (You Need a Budget), and Personal Capital both seem very popular as well.

[Cdub100 3,380]

I use personal capital. I love it. 

We don't have a "budget" however we have a lot of automatic withdrawals. My wife gets paid on the 15th and 30th every month which is really helpful with scheduling.

[sderk 1,040]

Some kind of version of Dave Ramsey's Financial Peace University should be a required class in high school and college. From what I understand it's based about actually getting out of debt, but the lessons can illustrate staying out of debt, and being financially aware  in life. I made poor decisions financially early in life but got out of it by shear brute force. Work, work, work, and living low key.

But good job dude, taking a tough experience and making something good out of it that will positively affect your lives from here on out.

 

[mmmmm...beer 691]

17 minutes ago, sderk said:

Some kind of version of Dave Ramsey's Financial Peace University should be a required class in high school and college. From what I understand it's based about actually getting out of debt, but the lessons can illustrate staying out of debt, and being financially aware  in life. I made poor decisions financially early in life but got out of it by shear brute force. Work, work, work, and living low key.

But good job dude, taking a tough experience and making something good out of it that will positively affect your lives from here on out.

 

I absolutely agree with the financial class being mandatory.  They should have a class seriously called "Adulting 101".  So many people complain about that sh!t... we need basic classes on how to be a grownup again.

The wife and I had gone through Financial Peace University a long time ago... but making good money just got away from its principals.  We're not way underwater, just need a good kick in the ass.  We have a good basis to get sh!t knocked out fairly quickly.

It's really just about getting back on track and being equally disciplined.

[MTSkiBum 1,594]

It is easy to let spending out of hand as salary rises.  

My wife and I need to start budgeting, we are good for long term(401k) but our short term savings is lower than it was 2 years ago. We have been withdrawing without putting anything in. 

[Brad GLuckman 518]

6 hours ago, MTSkiBum said:

It is easy to let spending out of hand as salary rises.  

My wife and I need to start budgeting, we are good for long term(401k) but our short term savings is lower than it was 2 years ago. We have been withdrawing without putting anything in. 

Very good point. I manage this by increasing my 401k contribution every year and learning to live on a fixed income.

If I get a 3% raise, increase 401k 2%. I did this for years and am now maxing out my 401k annually. Additional savings started going to another investment account.

There are sacrifices. My car is almost 6 years old. I plan on driving it as long as possible. I could afford a much more expensive house, but have not acted on it. People today are too concerned about impressing others with their material wealth. Guess what? Nobody gives a sh!t what kind of car you drive or how big your house is. 

[Hardcore troubadour 12,625]

9 hours ago, MTSkiBum said:

It is easy to let spending out of hand as salary rises.  

My wife and I need to start budgeting, we are good for long term(401k) but our short term savings is lower than it was 2 years ago. We have been withdrawing without putting anything in. 

Me too. I usually finish on her boobs. Tell her I said hi. 

[frank 2,144]

7 hours ago, Cdub100 said:

 My wife gets paid on the 15th and 30th every month

Thanks for reminding me. I’ll get the check in the mail tomorrow. 

[sderk 1,040]

20 minutes ago, Brad GLuckman said:

Very good point. I manage this by increasing my 401k contribution every year and learning to live on a fixed income.

If I get a 3% raise, increase 401k 2%. I did this for years and am now maxing out my 401k annually. Additional savings started going to another investment account.

There are sacrifices. My car is almost 6 years old. I plan on driving it as long as possible. I could afford a much more expensive house, but have not acted on it. People today are too concerned about impressing others with their material wealth. Guess what? Nobody gives a sh!t what kind of car you drive or how big your house is. 

Yep. I think Dave Ramsey came up with this saying:

"...Debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice."

[frank 2,144]

As some of you know, I am a cheap bastard. I spent about 20% of my gross pay last year. I have a years salay in the bank. I have two nearly maxed retirement accounts and an ira. I plan to open an investment account because I can’t put any more in retirement. 

I have no kids. My car is 15 years old. My budget consists of spending $800/month in addition to bills. I don’t always stick to it but I have a little over $700 left for February right now. 

The key is living below your means and not paying interest. 

In the words of the great philosopher, “straight cash homie.”

This is mostly common sense, but is a good read: 

https://www.gutenberg.org/files/8581/8581-h/8581-h.htm

[Cdub100 3,380]

2 hours ago, frank said:

Thanks for reminding me. I’ll get the check in the mail tomorrow. 

You were late last month. Don't let that happen again.

[Super Cubs 132]

15 years ago when I got serious about getting out of debt I realized its not about how much you make, but how much you don't spend.  I cut out stupid spending.  Paying for a TV service like cable is stupid spending.  

[frank 2,144]

2 minutes ago, Super Cubs said:

15 years ago when I got serious about getting out of debt I realized its not about how much you make, but how much you don't spend.  I cut out stupid spending.  Paying for a TV service like cable is stupid spending.  

From the book by P. T. Barnum that I linked above:

Mr. Micawber, one of those happy creations of the genial Dickens, puts the case in a strong light when he says that to have annual income of twenty pounds per annum, and spend twenty pounds and sixpence, is to be the most miserable of men; whereas, to have an income of only twenty pounds, and spend but nineteen pounds and sixpence is to be the happiest of mortals.