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"Pay yourself first". What does that does that even mean? I guarantee you if you had a large bill you'd pay that over putting it on a credit card, and if you don't and instead save and then pay with a credit card, I certainly don't agree with that mentality at all either and I don't find many smart people who would.
I don't know ANY rich people who don't. And I know a lot of millionaires.
Just a hunch but most people will budget for what they are comfortable with and save the rest. Vs. the other way around.
Example, let's say in order to live in a neighborhood you are comfortable with costs $1,500/month.
Do you say no, I'm going to live in the ghetto because my budget dictates I save an additional $500/month and only pay $1k in rent?
No, you spend the money required to live the life you are comfortable with.
The OP wants to budget for all these presents etc. Why? What's the point? Again you either have the money or you don't. If you don't want to spend it that's another issue, and something that a budget won't help with "oh sorry I couldn't bring a gift, my budget wouldn't allow it" has been said by no one.
On a side note, I didn't even know you were supposed to bring gifts to people when you come over to their house. Shows how socially illiterate we are lol.
Projecting and tracking your spending allows you to control your expenses.
I've tried it many ways:
Budget
Tracking spending
No budget
Saving first
Etc
I don't budget. I'm young...I buy, buy, buy. I don't save. Saving is for old folk. I can be 30 and broke and still make it. Right now, I spend anything I get. In it comes, out it goes.
I don't budget. I'm young...I buy, buy, buy. I don't save. Saving is for old folk. I can be 30 and broke and still make it. Right now, I spend anything I get. In it comes, out it goes.
Considering the thread on how people make money directly below I'm going to assume you are trolling. If not I think you identified part of the problem. I am in my early 30s, my wife is 30. We save over 35% of our gross every year.
Considering the thread on how people make money directly below I'm going to assume you are trolling. If not I think you identified part of the problem. I am in my early 30s, my wife is 30. We save over 35% of our gross every year.
No, I'm not. Now, why would I save peanuts? I don't save for nothing. Not in my current state, probably not for a long time.
Usually about $350/month for things that don't come up monthly (I call it my misc. budget). Now I have a separate budget for car repairs, and also one for expensive non-monthly things that come up like my license renewals. Most months (at least historically) I pick up an extra day or two at work and I'll then sometimes be able to spend a little more than that $350. Like this past month it was close to $500, but that included a new microwave and my Christmas decorations this year (things I'm hoping not to have to buy again for a few years, at least).
What is normally included in my misc. budget is things I'll buy once a month like hair gel, toliet paper, kleenex, moisturizer, etc. (and then of course things I'll buy for fun like a new book or gardening supplies). I told someone I go out shopping for these things once a month (these items change every month too, so it's not something I can budget strictly for like fuel, groceries or utilities) and they found that hysterical. I didn't know that was so odd.
Quote:
Originally Posted by GeoffD
I don't formally "budget" discretionary spending. I budget everything else including savings. Whatever is left after that is discretionary. My savings is fairly aggressive since I am 8 years away from retirement so I have an awful lot of "like-to-have" things that are deferred.
I can see how that would work. It works better for me to have a set amount each month (to spend on extras/misc.) that's limited, and then based on if I worked more (or less sometimes!), whatever I have left over I put that extra amount into savings. I have a set amount I save too (most months, except for this holiday month where I'll be working even less since I'm taking a few days off to visit my family), so whatever is left over is in addition to that. Maybe it works better for me that way since my income fluctuates each month, so I really don't have a set amount typically that comes in.
Considering the thread on how people make money directly below I'm going to assume you are trolling. If not I think you identified part of the problem. I am in my early 30s, my wife is 30. We save over 35% of our gross every year.
But your income is most likely more than $17k a year unlike that OP.
The poor spend the vast, vast majority of their earnings hence why tax cuts for the wealthy don't really spur the economy, and why programs such as food stamps and other forms of welfare have such a high/positive ROI.
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