OT - Budgeting/Money Talk

tarheelmatt

Now that I (my wife and I) have a little girl, I am really wanting to maximize savings as well as become more efficient money wise.  I am a numbers guy, but not the accounting type.  

Was wondering if there were any bean counters out there that have ways, spreadsheets, or other ways to maximize the bottom line.  I have a few spreadsheets detailing what mostly goes out and what comes in, but lets face it, I would love to streamline this as time just doesn't come as easily as it used to.  

blind99

@tarheelmatt  We try to review what we've been spending, and it's usually pretty clear pretty quickly.  Like, why did we need all that stuff at Target and Costo?  Then we cut back.

My 2c of advice is to figure out your budgeting for long term, big ticket items, like retirement and college.  Then start automatically saving for them, so they get taken out of your paycheck or checking account without doing anything.  Even starting little is good, like 50$ a month into a brightstart account for college. (* 18 years, 7% growth = $21,000)

There are services like Mint that are pretty popular, and it looks great, I'm just not willing to give my account information out.  (I make the hackers get it from Home Depot)

fishlessman

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
)

lousubcap

No accountant here but if you arrive at a place where you have to choose between funding retirement and something else, I don't know of anyone who has been able to borrow $$ to fund retirement.  FWIW-

Jeremiah

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

DMW

Treat all money as disposable income, open and run up and many credit cards as possible, take out payday loans. Wait, no that probably isn't right...

tarheelmatt

Jeremiah said:

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

I have though about taking those classes.  Since the baby, my mind is racing thinking about car for her, college for her, retirement, savings, making sure we have plenty in savings, and the list goes on and on.  

fishlessman

tarheelmatt said:

Jeremiah said:

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

I have though about taking those classes.  Since the baby, my mind is racing thinking about car for her, college for her, retirement, savings, making sure we have plenty in savings, and the list goes on and on.  

if it were me, wait it was me,
) buy a camp, enjoy it, take your kid to camp as much as possible, when the time is right sell the house and move to camp, it will have already been paid for. its a strange time when prices AND rates are low
its my plan anyways, hope it works, going to camp in 15 minutes and loading the boat up for tomorrow

hondabbq

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.

XC242

I keep waiting for that big box of money to show up on my doorstep...

lousubcap

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- 

Jeremiah

Matt I don't know if I'd recommend the whole class but I'd definitely read the book as a starting point. Really make sense of budgeting and saving/investing. Sadly we really got ourselves in a bind with student loans and then bought our first house just before the bust. Then had our daughter. Lol. We're digging our way out but damn sometimes I feel like a Chilean miner.

BRush00

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.

BRush00

Jeremiah said:

We're digging our way out but damn sometimes I feel like a Chilean miner.

bahahahahahaa

wow.... I'm absolutely going to tell that one to my Wife tonight.... Thanks Jeremiah!  I can relate 100%!

Grillin_beers

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

Collage fund? Thank goodness my son is to dumb to go. Free money to me.

Seriously though just a budget is all it really takes. I never follow mine but if I did damn I could have a crap load of cash. Instead I got this last week.

Grillin_beers

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

badinfluence

@Grillin_beers‌ yeah me to traded my 05 tj in for this...oh yeah its a rubicon. That and it can tow my cooker where the 05 couldent

Grillin_beers

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.

wpendlegg

I love personal finance and investing.

I would recommend that you devote some time towards self-learning and finding some ideas that speak to you. Just make sure you do so with some scrutiny because there is a ton of **** out there from people that would love to take your money under the guise of helping you. No one will look out for your financial well-being better than yourself.

The Mister Money Mustache blog has been pretty influential to personally becoming financially aware. His views may be a little extreme, but there are lots of good ideas here:

http://www.mrmoneymustache.com/

Pair that with a finance book or two, and you'll be headed down the right path for sure. For my wife and I? We started by doing our best to maximize income and minimize expenses. There are lots of little and easy ways to widen those margins that put extra cash in your account. 

That may be sort of what you're looking for without being a numbers-driven accountant-type (like you said)

Zmokin

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.

Mickey

tarheelmatt said:

Jeremiah said:

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

I have though about taking those classes.  Since the baby, my mind is racing thinking about car for her, college for her, retirement, savings, making sure we have plenty in savings, and the list goes on and on.  

You said "HER" and did not list $$$ Wedding ^:)^

JohnInCarolina

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).

Fred19Flintstone

This isn't a high finance idea.  We pay with cash quite a bit.  That accomplishes two things.  First, we limit credit card purchases.  Secondly, we have a rule that we do not spend any singles.  We save them all year and use them to put a dent in Christmas expenses.  Works for us.

KennyLee

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.

cazzy

Marry a successful white woman...worked for me!

Mickey

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.

Wolfpack

Pay yourself first- put money in savings, 529, 401k, etc- pay bills and then spend the rest on stuff you want to do. You won't feel guilty when you have already met your obligations. Live below your means but enjoy life. Kids are cheap when little- the money comes later

tarheelmatt

I sure do appreciate the help fellas. We're pretty low key folks, but sometimes I feel I can do more.

The wife @cazzy‌ I cannot take back. She's a teacher, so we're not to rich, lol.

I will look into some of these resources and take the advice.

I have been pretty adiment about my retirement since I was hired 13 years ago.

Jeremiah

@Mickey‌ that's something that's always interested me. How did you get into it? What demographic (income level) do you shoot for?

tarheelmatt

@Mickey‌, great advice like @Jeremiah‌ said.

I have often wanted to get some rental property. My brother has a plot with a mobile home on it and does decent. He has had some bad luck with renters lately though. Like you said you really need more to see decent income.