| What is the best way to start a budget? |
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Dallas Dollars
First Time Poster
Cash: $ 0.20
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Joined: 08 Feb 2010
Location: USA
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Utilize the most powerful source of information on the planet.... the Internet. One helpful site that actually got me on my financial fitness plan is Quizzle. Quizzle actually is a financial website that allows you to receive a free credit report as well as helps you establish a budget for you to live by. When establishing your goals for your budget, be realistic. For example, I used to drink Starbucks coffee everyday (Venti Caramel Frappicino and a coffee cake to be exact) and that was costing me roughly 7.50 daily. I was spending $ 232.50 on coffee alone in a month's time. Look at where you are spending your money and determine if where you're spending is a want or necessity. Ridiculous I know so i have to settle for the coffee in the break room. My pockets, and my girlfriend thanked me.
I hope that helped.
http://www.cesidebtsolutions.org
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Mon Feb 08, 2010 9:05 pm |
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oldguy
Senior Member
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Joined: 21 May 2006
Location: arizona
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quote:
For example, I used to drink Starbucks coffee everyday (Venti Caramel Frappicino and a coffee cake to be exact) and that was costing me roughly 7.50 daily. I was spending $ 232.50 on coffee alone in a month's time.
Dallas - as an exercise, do an annual budget - and account for your expenses based on your gross income, ie, your budget should sum to your before-tax gross salary. Then do a 'descending sort' on the expense column. Your highest annual expense is probably shelter. And Federal Tax is near the top. So is transportation. By doing this you will be separating "the significant few from the insignificant many". (Pareto Analysis).
You will see the interactions - eg, you can add more to your 401k and lower your Fed & State Taxes. And you will note that the top 20% on your list contain 80% of the money - the bottom 80% contain only 20% of the money.
The top items will be in the 5-figures - so a 25% cut to one of them will amount to a few 1000. Conversely, a 100% cut to an item near the bottom may save only $1000.
The point is - the latte factor is NOT an important metric to becoming wealthy - you are working at the wrong end of your list. So go ahead and spend $2790 for your Venti Caramel Frappicino - you can still become a multimillionaire. (I usually have the Grande Frappicino, Coffee Lite.)
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Mon Feb 08, 2010 11:13 pm |
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samurai
Contributing Member
Cash: $ 10.25
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Joined: 24 Jan 2010
Location: philippines
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I know I'm from a totally different part of the world, but maybe this can help...
Where I'm from, there is no government health care system to speak of, a laughable welfare system, an unstable pension system, No 401, no ROTH, no bankruptcy protection. A housing loan hovers aroun 8-13% per annum.
Because of these circumstances, it affects your total outlook in the way you spend and the way you work and the way you invest, knowing that you can't depend on anyone else but yourself.
Those with any sense would only go to Starbucks if they had no choice, and Mcdonald's is considered a family outing.
So, what was the effect on me? Well, I have no debts and own our home outright, I don't use credit cards, One of my cars is a low end 17 year old Toyota(they used to make really dependable cars), that I've had for 17 years.
So, what is the significance? Well, it seems that many of the institutions in the US are headed the same way, and sharing my experience may help some of you out there.
The best way to predict the future is to create it.
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Sat Feb 13, 2010 12:31 am |
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coaster
Senior Advisor
Cash: $ 1318.80
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Joined: 11 Oct 2005
Location: Wisconsin
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quote:
Originally posted by samurai
Because of these circumstances, it affects your total outlook in the way you spend and the way you work and the way you invest, knowing that you can't depend on anyone else but yourself.
Right on. Thanks for your point of view. It should be more widely held. And for the life example. I'm glad it's worked out for you.
~Tim~
Eye Candy : Why Whimsy
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Sat Feb 13, 2010 7:55 am |
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Paul22
Member
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Joined: 24 Feb 2010
Location: U.K
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Before you write out a budget, take at least a week to jot down your family's spending. You'll be surprised how quickly a $2 coffee and bagel adds up in a large family. After the week is up, sit down as a family and analyze the results. My parents have always been upfront with me regarding their salary, mortgage and costs. If you feel comfortable enough, share this information in confidence with your children so that they better understand why a budget is necessary and how they can partake.
Accident Compensation
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Wed Feb 24, 2010 1:24 pm |
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namratasnv
Preferred Member
Cash: $ 25.25
Posts: 126
Joined: 24 Jul 2009
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quote:
Originally posted by Zector
There is an amazing show called "Till Debt do us part". It's all about people in a hard place and making budgets to get out of it. They have people from mc donalds to doctors, all classes of life. Her website has a lot of great resourses as well. I can never remember or spell her last name valvoxide or something like that just google it.
Hello !!
Very true saying.one should think on this that planning a budget is very important and moving according to it is more important.
Thanks
http://www.connecticutwebuyhouses.com/
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Fri Feb 26, 2010 8:31 am |
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