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Started By
Message
1
Posted on 6/19/11 at 11:38 pm to kfizzle85
Enjoy your life man. 
Posted on 6/20/11 at 12:10 am to LSU1018
quote:
Start using mint.com and track where your money is being spent.
quote:
Honestly a great thing you can do is put your savings on automatic. Set things up so that every time you get paid, a certain portion is automatically deposited into a 401(k), Roth, or both. You will start cutting back to compensate before long.
These two are your best options without a doubt.
The first thing you need to do is go on Mint and connect your online debit card to it. It will instantly update and you can begin tracking. There are interactive charts that make it unbelievably easy to understand your cash flow.
Foshizzle is spot on the the "pay yourself first" idea. If you are maxing out the 401k and Roth and can still spend however you want--well you don't have much to worry about. But, I expect that you will naturally cut back on your spending once the money isn't so readily available.
Posted on 6/20/11 at 2:58 am to RBWilliams8
First thing - start saving yourself money on a recurring basis.
Make a list of every single bill you pay every month and the typical amount. Add them up.
Now a few questions:
- Still using that gym membership? How about both gym memberships? If your wife never goes, you don't need the family membership.
- Still need that land line phone?
- When was the last time you called to renegotiate or shop around on your electricity plan? You can save a lot of money doing this, at least if you live in Texas.
- Wow, that much for a cable bill? Sure you need all of these channels or the top tier of internet speed?
- Etc.
- Etc.
- Etc.
Dining out is a huge expense category for people who don't pay much attention to spending. Is your wife a big shopper? How many of those clothes just sit in the closet or get worn once?
Of course, the big ticket items such as housing and vehicle are quick places to cut monthly expenses, but you may not need to go there until you address the day-to-day spending first.
Until I started tracking my finances in Microsoft Money, I found myself having a good income but never getting any richer. It's amazing how much you can do once you see where your money is actually going.
Also, to get my wife on board, we started keeping track of bottom line net worth in Microsoft Money. Each time we hit the next milestone we would go out to a nice dinner or something. This awareness developed her own acumen (even as far as cost of capital, time value of money, etc), so now she just "gets it" and doesn't even worry about the milestone dinners.
Best of luck.
Make a list of every single bill you pay every month and the typical amount. Add them up.
Now a few questions:
- Still using that gym membership? How about both gym memberships? If your wife never goes, you don't need the family membership.
- Still need that land line phone?
- When was the last time you called to renegotiate or shop around on your electricity plan? You can save a lot of money doing this, at least if you live in Texas.
- Wow, that much for a cable bill? Sure you need all of these channels or the top tier of internet speed?
- Etc.
- Etc.
- Etc.
Dining out is a huge expense category for people who don't pay much attention to spending. Is your wife a big shopper? How many of those clothes just sit in the closet or get worn once?
Of course, the big ticket items such as housing and vehicle are quick places to cut monthly expenses, but you may not need to go there until you address the day-to-day spending first.
Until I started tracking my finances in Microsoft Money, I found myself having a good income but never getting any richer. It's amazing how much you can do once you see where your money is actually going.
Also, to get my wife on board, we started keeping track of bottom line net worth in Microsoft Money. Each time we hit the next milestone we would go out to a nice dinner or something. This awareness developed her own acumen (even as far as cost of capital, time value of money, etc), so now she just "gets it" and doesn't even worry about the milestone dinners.
Best of luck.
Posted on 6/20/11 at 1:44 pm to RBWilliams8
quote:
quote:
Better is to get a credit card with a cash back reward and be sure to pay it back in full every month.
What kind of credit card offers that?
American Express Blue Cash is what I have been using for 5-6 years.
LINK
Posted on 6/20/11 at 2:04 pm to RBWilliams8
check with your company and see if they offer the option to automatically deposit a portion of your paycheck into a savings account
Posted on 6/20/11 at 2:18 pm to StrangeBrew
quote:
Max out your IRA or 401k, once you do that, have automatic deductions into a Health Care Spending Account.
This is the first thing you should do.
Posted on 6/20/11 at 2:22 pm to GoDucks349
Pay off any debt that charges interest. Cars, credit cards, loans etc.
Posted on 6/20/11 at 11:02 pm to GoDucks349
quote:
Pay off any debt that charges interest
Not necessarily true. For most people that isn't a bad idea, but the right way to go is to use the cash you have to earn the greatest return possible.
Paying off an 18% credit card is a no-brainer, but paying extra on a mortgage that is only 3.5% after tax may not be a great idea.
Posted on 6/20/11 at 11:48 pm to foshizzle
First thing you should do is create a budget (unlike our zany congress)!
Identify in your budget fixed and variable expenses.
You should include retirement savings in your FIXED expenses NOW, max out your retirement savings!
When you have a working knowledge of your budget, then you can identify areas of excess. I believe Mint.com is a valuable site, but I am unsure if it provides a budget application.
If you include your "traditionally" variable expenses like entertainment and groceries into your fixed expenses by allotting a given acceptable dollar amount, it will save you money that will be significant over time.
Also include a vacation account and luxury spending account where money is squirreled away at an acceptable pace, and don't check it until you see that new car or wonderful vacation that you can't live without.
The most important thing is to know where the leaks are before you try and patch the boat.
Identify in your budget fixed and variable expenses.
You should include retirement savings in your FIXED expenses NOW, max out your retirement savings!
When you have a working knowledge of your budget, then you can identify areas of excess. I believe Mint.com is a valuable site, but I am unsure if it provides a budget application.
If you include your "traditionally" variable expenses like entertainment and groceries into your fixed expenses by allotting a given acceptable dollar amount, it will save you money that will be significant over time.
Also include a vacation account and luxury spending account where money is squirreled away at an acceptable pace, and don't check it until you see that new car or wonderful vacation that you can't live without.
The most important thing is to know where the leaks are before you try and patch the boat.
Posted on 6/21/11 at 6:48 am to RBWilliams8
Dave Ramsey's Financial Peace University
Posted on 6/21/11 at 6:51 am to LSU1018
quote:While not much fun, you can save a TON by ordering water instead of beer/wine.
You will be surprised at how much you spend on things such as eating out etc.
Posted on 6/21/11 at 8:03 am to jcole4lsu
It works differently for everyone. I spend cabs twice as fast as credit card money.
Tracking it with mint.com will also help him see his spending problems.
Tracking it with mint.com will also help him see his spending problems.
Posted on 6/21/11 at 9:09 am to foshizzle
quote:
Not necessarily true. For most people that isn't a bad idea, but the right way to go is to use the cash you have to earn the greatest return possible.
Paying off an 18% credit card is a no-brainer, but paying extra on a mortgage that is only 3.5% after tax may not be a great idea.
I agree with you completely. I should have qualified my statement better. The problem is there aren't a lot of great "dividend/interest bearing" investments out there right now with really low risk AND give you say 5% aftertax returns.
Posted on 6/21/11 at 11:34 am to RBWilliams8
All good advice so far but the most important tip in my life was 'identify the difference between a NEED and a WANT.'
Buy what you NEED. Pass on what you WANT until you are in a comfortable financial position.
Buy what you NEED. Pass on what you WANT until you are in a comfortable financial position.
Posted on 6/21/11 at 12:07 pm to LSU1018
quote:
Start using mint.com and track where your money is being spent. You will be surprised at how much you spend on things such as eating out etc.
I'm signing up for this now
Looks like a great resource...
Posted on 6/21/11 at 12:45 pm to RBWilliams8
quote:
RBWilliams8
Your problem is common with people who have good incomes. This is what I do.
I have figured out how much my bills are each month and what I consider an acceptable amount for discretionary spending (entertainment, purchases of clothes, stuff, presents, travel, etc.). Let's say I make $1000 and my bills are $500 and my discretionary spending is $200. Then every month, when I get paid, I put $300 (what's left of the $1000) into investments. I do it on the first day of the month, every month. That way, the money is gone and I can't reach it.
I do the above only after I have no debt (except mortgage), maxed out the 401k, saved an emergency fund, and stashed away some "mad money" just in case I need to buy a Cartier watch tomorrow.
If you treat your investments as untouchable (like a 401k), then you will learn to live on what's left out of your pay check. Good luck.
Posted on 6/21/11 at 12:50 pm to wrlakers
If you want a good, very small book that has some great money 'wisdom' tips, then read "The Richest Man in Babylon".
Posted on 6/21/11 at 1:12 pm to TheHiddenFlask
quote:
I spend cabs twice as fast as credit card money.
i assume you meant cash.
i am the total opposite. give me plastic and ill impulse buy.
give me cash and my last name might as well be greenstein.
Posted on 6/21/11 at 2:20 pm to tigerpawl
quote:
While not much fun, you can save a TON by ordering water instead of beer/wine
I actually do this, not for the money benefit but for my diet. If you don't like to drink regular water, there are several products that make single serving packets for flavoring (not kool aid).
We use a product called MiO Liquid. One drop of liquid into a 8 oz glass of water, stir... instant flavored water.
Kills 2 birds with one stone, and the bottle is tiny, so it fits in the wife's purse.
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