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Started By
Message
Personal Finances For An Idiot?
Posted on 11/12/16 at 2:21 pm
Posted on 11/12/16 at 2:21 pm
Uhg. This is embarrassing. I'm the idiot in question.
When it comes to money? I've been just getting by, mostly my whole life, by because I'm a bonehead when it comes to managing my personal finances and money in general... I spend nearly all that I earn and save very little, I overextend on credit and never really recover until one, unexpected, big payday and I can pull my head above water (if only for a short time).
I went through my 20's with a huge inheritance that I effectively just squandered on cars, watches, over the bar, and bullshite unnecessary "stuff". I make well into six figures with a steady and predictable paycheck (with huge earning potential based on production) and yet I'm still just "getting by"...
As I've grown older, I've realized that I don't always need the next big thing that I eye at the store or online and don't ALWAYS need to go out for $250-$400 dinners picking up the check ALL the time.
Honestly, it stands to reason that I never really learned the value of a dollar as a young man and it's time to grow up. And I realize I'm not invincible and most/all of the resources I've leaned on in desperate times won't always be there to support me.
I've been perusing Barnes & Noble, as well as the web, looking for books, resources, etc. to help me learn better tips/tricks to managing my and my SO's money.
I've selected some books that I'd like feedback on in terms of effectiveness and absolutely welcome suggestions.
...time to grow up, Peter Pan.
Thanks in advance.
Book 1:
"Roadmap to the rest of your life" by Bart Astor
Book 2:
"You're broke because you want to be" by Larry Winget
Book 3:
"Personal finance in your 20's for Dummies" (I know I'm WELL into my 30's, but again, I didn't learn shite while in my 20's and thought it might be worthwhile to start at the beginning?)
(I looked at the sticky and didn't see anything specific to just "personal finance management")
p.s. Sorry about the wall of words, but it's time to be honest with myself.
When it comes to money? I've been just getting by, mostly my whole life, by because I'm a bonehead when it comes to managing my personal finances and money in general... I spend nearly all that I earn and save very little, I overextend on credit and never really recover until one, unexpected, big payday and I can pull my head above water (if only for a short time).
I went through my 20's with a huge inheritance that I effectively just squandered on cars, watches, over the bar, and bullshite unnecessary "stuff". I make well into six figures with a steady and predictable paycheck (with huge earning potential based on production) and yet I'm still just "getting by"...
As I've grown older, I've realized that I don't always need the next big thing that I eye at the store or online and don't ALWAYS need to go out for $250-$400 dinners picking up the check ALL the time.
Honestly, it stands to reason that I never really learned the value of a dollar as a young man and it's time to grow up. And I realize I'm not invincible and most/all of the resources I've leaned on in desperate times won't always be there to support me.
I've been perusing Barnes & Noble, as well as the web, looking for books, resources, etc. to help me learn better tips/tricks to managing my and my SO's money.
I've selected some books that I'd like feedback on in terms of effectiveness and absolutely welcome suggestions.
...time to grow up, Peter Pan.
Thanks in advance.
Book 1:
"Roadmap to the rest of your life" by Bart Astor
Book 2:
"You're broke because you want to be" by Larry Winget
Book 3:
"Personal finance in your 20's for Dummies" (I know I'm WELL into my 30's, but again, I didn't learn shite while in my 20's and thought it might be worthwhile to start at the beginning?)
(I looked at the sticky and didn't see anything specific to just "personal finance management")
p.s. Sorry about the wall of words, but it's time to be honest with myself.
This post was edited on 11/12/16 at 2:33 pm
12
Posted on 11/12/16 at 3:17 pm to Envy
Nice brag thread bro
Posted on 11/12/16 at 3:18 pm to Envy
Posted on 11/12/16 at 3:33 pm to Envy
First thing, dude you gotta settle down with the negative self talk. A huge chunk of America is in your position and you are apparently interested in making positive changes.
The first thing I would recommend is a realistic budget. Start to really observe where your money is disappearing to.
The first thing I would recommend is a realistic budget. Start to really observe where your money is disappearing to.
Posted on 11/12/16 at 3:54 pm to Envy
Total money make over and attend financial peace university. You need behavioral change not just knowledge
Posted on 11/12/16 at 8:49 pm to TrebleHook
quote:Ummm, I'm pretty sure I called myself an idiot, a bonehead with money, and asked for advice from a group of posters who I respect more that the OT.
Nice brag thread bro
How in the world is this a "Brag Thread"?!?!????
Posted on 11/12/16 at 8:51 pm to BigD13
quote:
Sounds like you need the
Total money makeover
Interesting... that link looks like REALLY good advice with nothing salient to impart to do and / or learn other than buy some random book...
Is that you, Dave?
Posted on 11/12/16 at 8:53 pm to Jcorye1
quote:I'm tired of making excuses and rationalizations for my behavior/choices.
First thing, dude you gotta settle down with the negative self talk. A huge chunk of America is in your position and you are apparently interested in making positive changes.
The first thing I would recommend is a realistic budget. Start to really observe where your money is disappearing to.
I realize that establishing a realistic budget would be a solid first step, but in all honesty, I clearly have no idea where to start to "establish" said budget. I'm familiar with what "budget" means, but in terms of assessing one? Totally vacant eyes.
I guess I would love someone on *this* board, with a solid grasp on money management, to give me some good next steps and / or advice on how to begin turning this shite around.
I'm literally throwing myself at the mercy of the Money Board.
Posted on 11/12/16 at 8:56 pm to 756
quote:Ok, so this Dave Ramsey dude is someone I should gain some familiarity with I'm assuming?
Total money make over
Again, if you gentlemen can speak to me like I know nothing about anything other that "hand to mouth" finances, I think then we'll be playing from the same sheet of music and can hopefully learn / educate me on better money management tips / skills / etc.
Again, thanks in advance for constructive replies... I was lead to believe that this is a more tolerant board that the OT...
Was I wrong?
Posted on 11/12/16 at 10:03 pm to Envy
quote:
I realize that establishing a realistic budget would be a solid first step, but in all honesty, I clearly have no idea where to start to "establish" said budget. I'm familiar with what "budget" means, but in terms of assessing one? Totally vacant eyes.
Try to think about 5 or 6 areas you spend money on and guess what you think you should spend in this area.
Mint.com can be a big helper here.
Don't worry about being rightthe first time this is something you can always revise and rework.
Posted on 11/13/16 at 8:11 am to Envy
quote:
Again, if you gentlemen can speak to me like I know nothing
Man I'm telling you, there isn't much we can say in a message board post to make a difference in you. Get the total money makeover book now and read it! That book is the single best thing to happen to me financially and it's not even close. If you have time to find and attend the financial peace university classes you really should. I think they have online classes.
Read the Total Money Makover and bump this thread, you tell us what you learned. You will realize that we can't write enough in a post to make a difference! Good luck
No I'm not Dave boss man!
This post was edited on 11/13/16 at 9:07 am
Posted on 11/13/16 at 9:50 am to BigD13
You can go the Dave Ramsey route which is likely a great start for you (although there are plenty on the MTB that do not like some of his advice). DR is mostly about the psychology behind financial management rather than always recommending the most financially beneficial decision. For most of America, the psychology is actually a bigger hurdle so it works for many.
Here is what I would do. Answer a few basic questions:
How old are you?
When do you want to retire?
What kind of lifestyle / How much money will you spend each month in retirement?
How much wealth do you have today? How much is liquid (not home equity)?
What this allows you to begin doing is determine how much you eventually need for a safe retirement. You can then back into how much you should be saving each year and each month to be able to hit that goal. Naturally, there are a lot of questions that a financial advisor would need to understand (e.g., do you have kids, a wife, own a home, car payment, credit card debt, ermergency fund, etc.)
Let me also say this...there is no "right" budget. A budget is a means of planning and nothing more. Do not let the idea of a budget mean that you will never have another moment of fun in your life. A budget is a guiding light that makes you acknowledge how you are spending your money. It is nothing more than a plan and allows you to see how your actual expenses are tracking to that plan.
When building a budget, I like to simplify it by saying, "I want to save XX this year...which means I need to save on average YY each month. If I make $AA each month then I need to save a certain percentage of that take home pay each month to achieve my goal for the month / year."
You then go into all of the different areas you spend money and see if you can hit that savings goal. If you cannot, then you have to decide where you can start making adjustments.
Here is what I would do. Answer a few basic questions:
How old are you?
When do you want to retire?
What kind of lifestyle / How much money will you spend each month in retirement?
How much wealth do you have today? How much is liquid (not home equity)?
What this allows you to begin doing is determine how much you eventually need for a safe retirement. You can then back into how much you should be saving each year and each month to be able to hit that goal. Naturally, there are a lot of questions that a financial advisor would need to understand (e.g., do you have kids, a wife, own a home, car payment, credit card debt, ermergency fund, etc.)
Let me also say this...there is no "right" budget. A budget is a means of planning and nothing more. Do not let the idea of a budget mean that you will never have another moment of fun in your life. A budget is a guiding light that makes you acknowledge how you are spending your money. It is nothing more than a plan and allows you to see how your actual expenses are tracking to that plan.
When building a budget, I like to simplify it by saying, "I want to save XX this year...which means I need to save on average YY each month. If I make $AA each month then I need to save a certain percentage of that take home pay each month to achieve my goal for the month / year."
You then go into all of the different areas you spend money and see if you can hit that savings goal. If you cannot, then you have to decide where you can start making adjustments.
This post was edited on 11/13/16 at 9:53 am
Posted on 11/13/16 at 11:46 am to Envy
First thing you gotta do is just let me hold your money. I'll totally take great care of it all. 
This post was edited on 11/13/16 at 11:47 am
Posted on 11/13/16 at 4:52 pm to Envy
Dave Ramsey is IMHO the Alcoholics Anonymous route to dealing with money problems. His advice isn't bad and some people need it, but it isn't ideal.
The big thing usually is to forget about the idea that people will like you more if you spend lots of money. The tricky thing is that yes, they will like you more. In fact, you'll be the life of the party. But if you don't have the income to support it you will spend yourself into the poorhouse.
Look at your annual income, whatever it is. That is what you have to work with every year. If you spend less than that, great. If you spend more than that, not great. You can change your income too - go to school, market yourself more effectively, etc. Kim Kardashian made a sex tape to get where she is, she didn't do it by getting a Ph.D. in neuroscience.
The big thing usually is to forget about the idea that people will like you more if you spend lots of money. The tricky thing is that yes, they will like you more. In fact, you'll be the life of the party. But if you don't have the income to support it you will spend yourself into the poorhouse.
Look at your annual income, whatever it is. That is what you have to work with every year. If you spend less than that, great. If you spend more than that, not great. You can change your income too - go to school, market yourself more effectively, etc. Kim Kardashian made a sex tape to get where she is, she didn't do it by getting a Ph.D. in neuroscience.
Posted on 11/13/16 at 8:33 pm to BigD13
The Dave Ramsey stuff is solid advice for people in your situation.
Go for it.
Go for it.
Posted on 11/13/16 at 9:08 pm to foshizzle
quote:DR probably isn't ideal for everyone, but he is ideal for everyone like the op. His system was created with the op in mind.
Dave Ramsey is IMHO the Alcoholics Anonymous route to dealing with money problems. His advice isn't bad and some people need it, but it isn't ideal.
Posted on 11/14/16 at 7:17 am to Envy
Just something I do, I calculate all of my expenses per year, and determine their value per check (Ex if cable bill is $100/month - 1200/26 is the per check value). Total expenses are deducted from my check into a separate account, and bills are auto drafted. It is like I don't have bills. Relieves the stress of worrying about bills per month.
Posted on 11/14/16 at 9:00 am to Envy
I was in mostly the same boat about 6 years ago, minus the six fig income. I had been out of college a bit, making 60k or so with no real debt or crazy bills to speak of, yet i never had anything to show for my money. I ended up going into cc debt and had a huge car note and felt like you feel now. Went through Financial Peace University at Bethany World Prayer Center with a buddy of mine (it was a small class, mostly comprised of people like me who do not attend that church). I have to say i really enjoyed the class and got a lot out of it. I'm now debt free minus my house, have a ton of money saved and i'm maxing out investments, payed 60k cash for a remodel to my home, and my wife is able to stay home with our son. I;m not making a killin (about 90k) but we are able to live virtually stress free by telling ourselves "no" MOST of the time. We both drive nice 2-3 year old vehicles that we paid cash for. Do i want to go out and buy a 2016 King ranch f150? EVERY.SINGLE.DAY. but i choose not to. Anyways, just know you have the opportunity to really put yourself ahead if you just make a few changes in your lifestyle. Good luck, pal.
(PS: Dave Ramsey is on the radio in BR from 1-4pm i think on 107.3)
(PS: Dave Ramsey is on the radio in BR from 1-4pm i think on 107.3)
Posted on 11/14/16 at 11:13 am to Envy
Envy, I can speak to you harshly because I was you.
1. First, the other poster is right, its a behavior problem, not a income problem. That makes it much easier.
2. Get a budget together with your SO by the end of the night. It can be as simple as a spreadsheet with Income and Bills at first - later you might want to use something like YNAB.
Income - Expenses such as mortgage, utilities, debt, etc. = Your Disposable Income. I expect this to be very high.
3. If you have any credit card debt, start using that disposable income to get rid of it. Dave Ramsey would tell you not to eat a meal out until credit cards are at $0.
His philosophy is to not have credit cards at all. If credit cards are a problem for you, then dont have them. If they aren't, there are ways to utilize them to your advantage. I normally take my entire family on one major vacation a year exclusively on credit card rewards, but I rarely have a balance.
4. Start investing. First with your work sponsored matching 401k. There should be 10-15% of your income going here. If you don't have a match, then you should find a place to start investing 15% of your income. Wealthfront, Betterment are two good low cost places to start while you learn what the hell you are doing.
5. I'm not the biggest Dave Ramsey fan, but he might be able to help you. Listen to his show for about 90 days. You will hear a lot of people having money problems because they dont make any money, but you will hear a bunch of people like you with good incomes that just dont manage it well.
There's a psychological factor to reading his books and listening to his show. You need the behavioral change.
1. First, the other poster is right, its a behavior problem, not a income problem. That makes it much easier.
2. Get a budget together with your SO by the end of the night. It can be as simple as a spreadsheet with Income and Bills at first - later you might want to use something like YNAB.
Income - Expenses such as mortgage, utilities, debt, etc. = Your Disposable Income. I expect this to be very high.
3. If you have any credit card debt, start using that disposable income to get rid of it. Dave Ramsey would tell you not to eat a meal out until credit cards are at $0.
His philosophy is to not have credit cards at all. If credit cards are a problem for you, then dont have them. If they aren't, there are ways to utilize them to your advantage. I normally take my entire family on one major vacation a year exclusively on credit card rewards, but I rarely have a balance.
4. Start investing. First with your work sponsored matching 401k. There should be 10-15% of your income going here. If you don't have a match, then you should find a place to start investing 15% of your income. Wealthfront, Betterment are two good low cost places to start while you learn what the hell you are doing.
5. I'm not the biggest Dave Ramsey fan, but he might be able to help you. Listen to his show for about 90 days. You will hear a lot of people having money problems because they dont make any money, but you will hear a bunch of people like you with good incomes that just dont manage it well.
There's a psychological factor to reading his books and listening to his show. You need the behavioral change.
Posted on 11/14/16 at 11:17 am to Envy
quote:
Interesting... that link looks like REALLY good advice with nothing salient to impart to do and / or learn other than buy some random book...
Is that you, Dave?
Buy the book. Pick up The Millionaire Next Door while you are at it.
Like I said above, I would listen to his show daily for 90 days. At this point you will be an expert and a believer in his method. Keep in mind, some of the methods are going to sting when you are used to $400 dining out meals. I make well over six figures and I can count on one hand how many times I've had a check over $100, and all of them have been very special occasions.
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