OT - Budgeting/Money Talk

my system is real easy, a hundred dollars a week is mine for booze, food, clothes, lump, hobbies, entertainment, day to day necessities etc. everything else dissapears.
) heres something, the stuff i saved in the 90's  is worth less now, the stupid stuff like boats and fishing reels i foolishly bought are now worth 3 times as much if i sold them now. my boat is a 91 and its worth 2.5 times what i put into it and i gotten to use it since 92, unbelievable
)

I do as fishlessman does. I get $100 a week to blow the rest goes in the bank account and pays bills or are budgeted expenses. My wife did the David Ramsey class, changed a lot on how we spend-- or now don't spend. Lol

My wife and I only take a $ 50 allowance per each payday ( 4 pay days per month) I have a pension plus monthly investment contributions plus she doubles my monthly contribution as she has no pension. Then we remove $100 per payday for a contingency fund. Usually for some project or vacation. Pay bills/ mortgage with remaining funds. Deposit the rest.

Actually @DMW's post reminded me something I came across around 6 years ago when looking into to college education for my youngest.  Most private colleges have set up pretty nice need-based scholarship programs.  So if you don't end up with much in the way of assets (spend as you go and enjoy it) when she hits college age you can do quite well.  On the other-hand academic based scholarships are not as prevalent.  FWIW- 

I read Dave Ramsey's 'total money makeover' awhile back as well.  Was also listening to his pod-casts.

Most of it was all really good information, though, being from Canada - some of the USA specific stuff (401K etc.) just wasn't applicable.

Another thing to note; his method WILL work, and WILL WORK EVERY TIME (as long as his plan is followed), but.... it's not necessarily the most optimal budget/debt free/wealth building tool.  For instance, he absolutely abhors Debt.  In any form.  I on the other hand, feel that if you could borrow money at 3%, to make 5% interest, would be acceptable.  Due to the risk involved in Debt, he would feel that the 2% income, would not be worth it.

All in all; good luck.  The Wife and I are in a similar 'money crunch' boat ourselves which we're working on, but it'll take time and patience.

I'm 26 without kids. My wife and I were both Finance majors in college. We both take 25% of our income and put into our 401ks. She gets 7% matching and I get 5% matching so it's like we are putting 32% and 30% respectively. Besides that we don't eat out more than twice a month and the only debt we have is our house. We take 200 a month for things like hobbies ect. It seems extreme, but once you get used to living below your means it isn't so bad. The best advice I ever received was from my senior seminar professor. He said to figure out a way to live on half of what you make and save the rest.

@badinfluence‌ I love my jeep. That and a bge and im happy.

I have a 14 Saharah. Just the two door. Before that I had a 97 Saharah. i wish I had the scratch for a rubicon. Maybe my next jeep will be one.

Maximize your 401K if you have one. 
Make extra principal payments on your homeloan if you can afford to.
Save up some liquid savings to the tune of about 6 months take home salary.

when you feel you need something, think long and hard about what is truly a need vs. what is a want.

You need food, clothing, shelter, transportation.
The smallest home you can fit in, fills the need.  The rest of the house is a want.
An old station wagon fills the need, the Cadillac Esplanade is a want.
You get the idea.
The Egg is a want (unless you have no other method of cooking food), but buying fresh ingredients and spending the time cooking should be cheaper than buying prepared packaged meals and/or eating out.

lousubcap said:

Actually @DMW's post reminded me something I came across around 6 years ago when looking into to college education for my youngest.  Most private colleges have set up pretty nice need-based scholarship programs.  So if you don't end up with much in the way of assets (spend as you go and enjoy it) when she hits college age you can do quite well.  On the other-hand academic based scholarships are not as prevalent.  FWIW- 

In fact the basis of financial aid calculations at most schools is that the parents have an obligation to pay. Calculations are based more on income than assets at the time of application.  And their calculations tend to be on the conservative side (meaning less money).

BRush00 said:

I read Dave Ramsey's 'total money makeover' awhile back as well.  Was also listening to his pod-casts.

Most of it was all really good information, though, being from Canada - some of the USA specific stuff (401K etc.) just wasn't applicable.

Another thing to note; his method WILL work, and WILL WORK EVERY TIME (as long as his plan is followed), but.... it's not necessarily the most optimal budget/debt free/wealth building tool.  For instance, he absolutely abhors Debt.  In any form.  I on the other hand, feel that if you could borrow money at 3%, to make 5% interest, would be acceptable.  Due to the risk involved in Debt, he would feel that the 2% income, would not be worth it.

All in all; good luck.  The Wife and I are in a similar 'money crunch' boat ourselves which we're working on, but it'll take time and patience.

Big fan of Ramsey also and his advice and plan works and makes a ton of sense.  However like you seem to feel, I do diverge from him when it comes to a mortgage.  We're now in a sub 4% mortgage and I feel I can always do better.  Plus we get the mortgage interest deduction.....at least until some in congress get their way and do away with it. 

All the rest of his stuff is spot-on, i.e. ZERO consumer debt, school debt, boats/RVs and even auto loans.

Wished I had started sooner than 50. Did the pay for kids college and wedding. Pay for wifes college and was in the market like 97% of those around me. I did not know crap but people would ask me why I did so and so in the market. I lost a good chunk of money and said that's it. If I don't know how something works very well and have some control my money is not going there. Advice is worthless. But here is mine. I stayed out 100% of the market. I bought/had built a duplex. Then another. Owning a duplex (even new) is hard. But after you get a few it starts to turn around. After about 8 doors they bring in enough to build another off income every year are so. So while working you don't have to have the income and that builds more houses/duplexes. If I had started this in early 30's I would have a house in Maui now, but was able to retire 15 years later. What I am saying is know who is handling your savings. Take control of your future.