The 60% rule is a good place to start. Maybe we spend too much, but I've never been able to quite stick to it. But when you are just starting out, some frame of reference is helpful.
CJ
· 7 months ago
I've been using Mint.com a lot more recently. My wife has been a little reluctant to start using it but recently we had an overdraft fee on our account (a $4 coffee suddenly costs $40... ugh). After that she joined me in getting a little more serious about budgeting. Since then we've consistently had $500-$1000 in our account at all times as a buffer.
We also are using the Cash envelope system for some purchases. Groceries is a big one. We find that we spend $200-$250 if we have cash but $400+ if we use our Debit Card. There is something about the idea of "when it's gone, it's gone" that really hits home when you have cash.
SJ
· 7 months ago
I track my spending as I spend on google documents lol. I have no real goals....
I know how much fixed expense are and try to minimize "other" expenses. After that I move what remains to savings/retirement/etc.
Not the best way but w/e, works for semi odd cash flow.
SteveDH
· 7 months ago
Making a budget doesn't need to be all that painful. One rule: KISS - Keep it Simple Sir - should be applied. Do you really need to know all the details? I've used budgets for many many years and they have gotten less complicated over time. Now I'm retired but I still maintain a simple budget. It only has six expense categories: Food, Insurances, Out-of-Pocket Medical Expenses, Taxes, Utilities & Services and General Spending. General Spending is the largest and covers almost all everything we pull out our wallets to pay for. A quick (Quicken) look at the balances and spending at mid-month is all that's needed to either put a smile on your face or a "Whoa" on the spending.
Enrique S
· 7 months ago
Pay yourself first is probably the best advice ever. This allows you to invest without even missing the money. I track my budget on a simple Excel spreadsheet. It's set up by week, so it's easy to visualize my expenses throughout the year.
James Fowlkes
· 7 months ago
Our family would not be where we are today without a monthly budget. It has allowed us to make amazing progress in our financial goals. I suggest everyone put one together. Also, Dave Ramsey offers some great budgeting tips in his book Total Money Makeover. It even provides a sample budget in Excel. It's what we used to get started. I highly recommend it.
Chad Smith
· 4 months ago
Take the tips listed above seriously. Setting an appropriate standard of living for you and your family is one of the most important financial moves you will make. In fact, the earlier you begin tracking your expenses, the better off you will be in the long run. It doesn't matter if it's with a pen and paper, spreadsheets, a web-based application, or Quicken type software. Just do it now.
All Comments
We also are using the Cash envelope system for some purchases. Groceries is a big one. We find that we spend $200-$250 if we have cash but $400+ if we use our Debit Card. There is something about the idea of "when it's gone, it's gone" that really hits home when you have cash.
I have no real goals....
I know how much fixed expense are and try to minimize "other" expenses. After that I move what remains to savings/retirement/etc.
Not the best way but w/e, works for semi odd cash flow.
Now I'm retired but I still maintain a simple budget. It only has six expense categories: Food, Insurances, Out-of-Pocket Medical Expenses, Taxes, Utilities & Services and General Spending. General Spending is the largest and covers almost all everything we pull out our wallets to pay for. A quick (Quicken) look at the balances and spending at mid-month is all that's needed to either put a smile on your face or a "Whoa" on the spending.