Monthly budget

[shannerdrake]

My wife and I did Dave Ramsey our first 5 years of marriage and it has literally set us up for life. It’s a pain, but it teaches you basic stuff that is actually common sense, but the world tells you you have to go to Disney (or finance a truck, have a 30yr mortgage, or hunt with an expensive rifle). We watched all of our friends in their 20s buy new cars, but big nice homes, and go on crazy cool trips. But at 40 we are in an amazing financial situation and aren’t that far from being able to retire comfortably. Those same friends who lived big early are all still broke and half of them are divorced (and broker).

To add on the DR principles. I teach anyone to listen two simple principles.

1) live on 80%. If you can “afford” a $400k house then only buy a $320k place. The principle will always afford you margins.

2) If you have to finance it, you can’t afford it. That one stings a lot of folks, but by definition it’s true. It amazes me that people don’t think they can ever afford to pay cash for a vehicle, but they can pay it off after 5 years and pay the interest too. Correct me if I’m wrong, but you could save for in about 4 years what you are taking 5 to pay for????

 

[VikingsGuy]

I have the apps for all our accounts on my phone, and check our balances every day. Credit cards/checking/savings/401k etc. I can tell you with a 12hr accuracy what our net worth is.

I have our direct deposits set up so that rent/mortgage and then regular monthly costs groceries/gas/utilities etc are the only portion of our paychecks that hit our checking account.

I keep a buffer in the checking account so I don’t over draft but try to have a 100% utilization every month of our paycheck. If there is a bunch left in my account at the end of the month that means more needs to go to savings.

I think my biggest “budget” struggle is at the high level. Long term savings, fun money/not a necessity, daily expenses.

The fun money category gets the shaft, and I think more than anything it’s me not being able to lighten up on the reins after a decade of super tight budgets.

The tightwad thing also makes me kinda a judgmental jerk when it comes to how other people choose to spend their money.

Sorry guys for making fun of your pickups… they’re epically stupid… but I don’t need to say it out-loud all the time

Checking all balances every 12h is more OCD than sound financial management. If you have reasonable budgets and stick to them (and have direct deposit set up) no reason to check most acct balances more than every other week and long term saving/401k accounts more than quarterly. Less management is more in my book.

My wife and I have been very purposeful with our spending and savings but set yearly goals, exercise a little discipline along the way, and think and talk about money as little as possible in between. Better to think and talk about the people in our lives, and the path we are charting together.

I have no interest in living a life where I daily think about my various balances or count $7 coffees. I would rather plan conservatively, live my life and maybe have a little more than expected at the end than micromanage every nickel every day.

 

[VikingsGuy]

My wife and I did Dave Ramsey our first 5 years of marriage and it has literally set us up for life. It’s a pain, but it teaches you basic stuff that is actually common sense, but the world tells you you have to go to Disney (or finance a truck, have a 30yr mortgage, or hunt with an expensive rifle). We watched all of our friends in their 20s buy new cars, but big nice homes, and go on crazy cool trips. But at 40 we are in an amazing financial situation and aren’t that far from being able to retire comfortably. Those same friends who lived big early are all still broke and half of them are divorced (and broker).

To add on the DR principles. I teach anyone to listen two simple principles.

1) live on 80%. If you can “afford” a $400k house then only buy a $320k place. The principle will always afford you margins.

2) If you have to finance it, you can’t afford it. That one stings a lot of folks, but by definition it’s true. It amazes me that people don’t think they can ever afford to pay cash for a vehicle, but they can pay it off after 5 years and pay the interest too. Correct me if I’m wrong, but you could save for in about 4 years what you are taking 5 to pay for????

His message of live within your means and don’t carry consumer debt is great. His advice regarding mortgages for the last 20 years is fiscal malpractice.

 

[gouch]

I guess I have always kept a budget but never wrote anything down. We always know how much money we take in each month and always now how much monthly expenses are, so we know how much that left. Neither my wife nor I ever liked shopping and almost never buy anything on impulse which makes things easier. We don't eat out or order in, just cook at home. We never fell victim to that expensive, addictive, sweet ambrosia they sell under the name of coffee. I know that stuff breaks the budget of a lot of folks. It's just easier to keep track of money when you don't spend it, I guess. I would disagree with those who say to not have credit cards. As long as you are disciplined and don't carry a balance then they are a great way to keep track of spending and are there for emergencies. And emergencies always seem to happen. One of my girls puts absolutely everything on her cash back credit card. She pays it off every month and actually gets quite a bit of money from the credit card company.

 

[Deleted member 28227]

Checking all balances every 12h is more OCD

Tip of the iceberg brohem

 

[SAJ-99]

We never fell victim to that expensive, addictive, sweet ambrosia they sell under the name of coffee. I know that stuff breaks the budget of a lot of folks.

We need to get away from this Suze Orman-your-problem-is-coffee BS. Yes if you spent $7 on coffee every day of the year, you are spending too much. If you don’t, great too. But that $2500 in coffee isn’t the real problem. Most people aspire to live a life above the income they can generate. And a counter argument is the $2500 may be a reasonable decision if it keeps them from buying the boat or car they can’t afford by using expensive credit.

 

[RealMuddyboots]

I am deep into Social Security life at 72 but the number one step we took years ago on budgeting is setting auto withdrawal from our main checking account where our auto deposits get dropped each month to deposit to various accounts set up for specific reasons. The remainder is still budgeted but not having to "see" the monies except in these other accounts made it hellava easier to set aside monies for taxes, insurances, vacations, vehicles etc. We pay for annual insurance in lump sum that saves hundreds each year. Just need to make sure that monthly amount is actually auto deposited so it doesn't exist. Use your bank auto transfer functions to your benefit.

 

[gouch]

But that $2500 in coffee isn’t the real problem. Most people aspire to live a life above the income they can generate.

$5000 for a married couple, if you only buy one a day. Maybe a muffin or scone to go with it, now it's up to maybe $6000. Eat at a fast-food restaurant for lunch several times a week. Maybe drink a couple of beers a night, more on the weekend. A few lottery tickets every week. Stuff like that a lot of people don't really count as discretionary spending when trying to stick to a budget, just living expenses, but you're probably looking at better than $10,000 a year.

 

[SAJ-99]

Stuff like that a lot of people don't really count as discretionary spending when trying to stick to a budget, just living expenses

Yes, and that's the real problem - not understanding where their money is going. If your only financial splurge is a $7 coffee, I'd say go for it, just don't put it on a credit card that retains a balance and charges you 15% interest. Tomorrow is promised to no one, so enjoy today - but be smart about it.

And for goodness sake, don't pay for someone or something to explain to you where your money is going.

 

[BucksnDucks]

For the married folks.
How many of you are 100% honest about cost of gear, trips, and guns?
I'm usually on a don't ask don't tell policy. If directly asked about a specific item, I won't lie but I'm not proudly printing out receipts for draws/tags, firearms or reloading components.
Also if I die and she sells any optics or rifles someone is in for a fantastic deal

 

[thomas89]

Tip of the iceberg brohem

I have no idea how many times I've been able to find fraudulent charges before my bank does. We don't use cards for much, but absolutely still check the accounts daily to avoid shenanigans like that.

For the married folks.
How many of you are 100% honest about cost of gear, trips, and guns?
I'm usually on a don't ask don't tell policy. If directly asked about a specific item, I won't lie but I'm not proudly printing out receipts for draws/tags, firearms or reloading components.
Also if I die and she sells any optics or rifles someone is in for a fantastic deal

100% honest. Finances are a huge factor in divorces, I imagine lying about finances would factor in even more so. I love my wife, she's my best bud, deserves to know as my partner in life exactly how much things cost. If she calls me a moron for spending too much, odds are, I'm a moron for spending too much. We've got a set amount where we need to discuss before spending, otherwise we trust each other to make sound financial decisions. I.E, I just bought two bricks of primers at todays prices. I told her exactly how much they cost, why they cost that much, and why I needed them. Non-issue. I bet it would have been different if I lied.

 

[Nick87]

How many of you are 100% honest about cost of gear, trips, and guns?

Have you lost your God damn mind man!!!????

No I'm just kidding. We have one account and any cash I make or checks go home and are handed off to her. She doesn't do any impulse buying or shopping for her self really. I fo give her a hard time though when I ask for cash. I'll literally say can you give me $50 she asks what its for, seriously I hand you checks for anywhere from $500 to $3500 on any given week no questions asked I can't have $50.

 

[shannerdrake]

$5000 for a married couple, if you only buy one a day. Maybe a muffin or scone to go with it, now it's up to maybe $6000. Eat at a fast-food restaurant for lunch several times a week. Maybe drink a couple of beers a night, more on the weekend. A few lottery tickets every week. Stuff like that a lot of people don't really count as discretionary spending when trying to stick to a budget, just living expenses, but you're probably looking at better than $10,000 a year.

Exactly. The people who spend $2500 on coffee run the rest of their lives in a similar way.

I got a friend who can’t afford to go hunting with us. Can’t afford to buy points in the spring. What he spends on alcohol, coffee, and garbage fast food could buy him a high-end guided hunt every single year. He can “afford” to hunt out west, but he prioritizes beer, coffee, and Applebees.

95% of the broke people I know have a spending problem, not an earning problem. Sorry if this sounds judgmental, but I find it true. My wife and I both grew up on welfare so we’ve seen both sides. Poor people buy debt, rich people buy assets.

 

[shannerdrake]

His message of live within your means and don’t carry consumer debt is great. His advice regarding mortgages for the last 20 years is fiscal malpractice.

Maybe on the mortgages. I think I mostly agree with you there. However, I would add that I can probably find 10 contacts in my phone in a couple minutes that have made bad housing purchases. I cannot find a person in my contact list who has followed his guidance to the letter who is not wealthy.

His guidance won’t likely make you a billionaire, but it will keep you from going bankrupt. I know exactly one billionaire. I know a couple dozen folks who filed bankruptcy.

 

[Deleted member 28227]

Maybe on the mortgages. I think I mostly agree with you there. However, I would add that I can probably find 10 contacts in my phone in a couple minutes that have made bad housing purchases. I cannot find a person in my contact list who has followed his guidance to the letter who is not wealthy.

His guidance won’t likely make you a billionaire, but it will keep you from going bankrupt. I know exactly one billionaire. I know a couple dozen folks who filed bankruptcy.

There is not and has never been a wealthy person who has not used leverage as a tool, probably not even a middle class person.

There simply is no possible way to make a lot of money without getting other folks to let you risk theirs.

This is the single basic principle of capitalism.

 

[Mountain Man]

This thread is about to devolve into a Dave Ramsey vs the world culture war. Who will come out on top?

 

[Southern Elk]

Bottom line is live below your means and you will be fine.

I can honestly say I’ve never bought one of those $7 coffees. That’s about how much my whole can of Folgers costs. I have, however, blown a sh!t ton of money on hunting.

 

[Jofes]

It seems all Dave Ramsey books should come with a copy of the millionaire next door for context and a realistic view of living within your means.

 

[Addicting]

@Oak

This thread is gonna kill your raffle sales. You need to nip this one in the butt.

 

[TN2shot07]

@Oak

This thread is gonna kill your raffle sales. You need to nip this one in the butt.

BS, raffle tickets are fine as long as they have a budget line!

At this point most of the point schemes don’t amount to much more than a raffle anyway