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Budgeting to fail

Discussion in 'Accounts and Finance' started by remnant, Mar 8, 2016.

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  1. remnant

    remnant Member

    Management of personal finances requires both discipline and planning. You have to budget your income to include savings. But many factors come into play and you find that it isn't a straight line and you are living from paycheck to paycheck. A budget is the ideal but the reality is different. How do you craft your budget?
    setupdisc likes this.
  2. briannagodess

    briannagodess Member

    Here is how I divide my salary:
    • 10% goes to savings
    • 90% goes to expenses
    And that's it actually. But it's mandatory that I have that 10% savings each month, no fail. It goes to my savings account so that if there's an emergency, we have something to get money from. Although I'd love to make the savings higher, right now, we just have so much expenses since we have a little son. I imagine that as he grows, the more expenses we would have. But then, by that time, I'm hoping that my husband has finished medical school already (if he doesn't fail any subjects which thankfully he still hasn't until now). Right now, we're surviving on my little salary and my husband's small business.
    setupdisc likes this.
  3. jona

    jona Member

    Something that's easier than sticking to a budget constantly is to simply go ahead and cut any unnecessary expenses from your life, specially those that are things like monthly subscriptions to services that you never use.

    If you are living from paycheck to paycheck and you are not facing many emergencies then you should be mindful of your spending, can you have a less expensive coffee everyday? Are you really using that gym membership? Do you even use your land line anymore? If you cancel all those superfluous expenses you will necessarily end with a surplus at the end of the month, after all, you were making it trough the month with the same amount of money but more expenses.
  4. Corazon

    Corazon Member

    When I got married, my husband had relegated to me the budgeting of our finances. It was like walking on a tighrope, so to speak particularly so that our income was small and we had debts to pay. But with my perseverance and cost-cutting measures, we were able to overcome the odds. And although we are still paying the house mortgage and the car loan, we are now well off in terms of our finances since we have a substantial savings in the bank. Not to brag but we are somewhat enjoying life because of the hassle-free finances.
    setupdisc likes this.
  5. ruener79

    ruener79 Member

    Amen to management of personal finance being an act of discipline and planning! It's true that sometimes one can veer away from a planned budget. Even so, I think it's still wiser to keep one than live without it. To me, not having a budget is a formula for debt accumulation. Not keeping track of your expenses and checking if its within the budget can lead someone to spending without end. The person only realizes that he's overspent when the bills come in.
    I understand that not everyone is patient or has the discipline to budget. That's why it's important to keep things simple. Find a system that will work. Only you alone knows what your circumstances are, so work around it. Determine your own figures. If you can save only 1%, then do so. The idea is to develop the discipline to include savings in your budget. If you're still at the stage of paying off debt, then make the percentage for payment bigger - even forego the savings budget, especially if debt is eating way too much interest.
    Generally, don't compare how other people are doing it. Sure, learn from them. But ultimately follow a plan that's best for your own circumstance.
    setupdisc likes this.
  6. Nancy

    Nancy Member

    If you are living paycheck to paycheck you need to find ways to increase your income! Some type of second side business, part-time evening job, etc. If you are self-employed come up with an intense marketing plan to increase sales/income, etc. Increasing income helps your savings, budget, and lowers your stress level.

    Cutting expenses is a definite part of budgeting. When you lay all your expenditures out to come up with a budget, you will be shocked at how much money is wasted! After you get rid of the obvious money wasting, continue to look every month at other ways to cut costs. You can be really creative with this if you put some thought into it.
    setupdisc likes this.
  7. Crazy and obvious as it sounds, ebay is a great way to augment a tight budget. Once you are all set up, it is easy to list- very reasonable and a quick and simple way to add some income. Start first with the things you have that you do not need/want/use anymore and sell a few things at a time at first to get the rhythm of it down. It is amazing how fast it can add up. While I can now afford to spend on "fun" things or my clothing habit :), I use ebay to fund all the little indulgences I would not spend on otherwise by selling items I no longer want or need. The little time it takes to list is worth those $300 shoes I would never buy for myself otherwise.
    setupdisc and Nancy like this.
  8. setupdisc

    setupdisc Member

    I would agree with you that it definitely is a quick and easy way to get things listed and for sale, but you may have to budget for someone else to fail if they default on (or try to take) what is auctioned that you cannot afford to lose.

    While not everyone encounters this and some people actually do really well on Ebay or manage to catch the scammers and people who do that before it happens, not everyone gets to be so lucky...and Ebay doesn't help many (or most?) of those people when that happens anymore since 2012 like they used to.

    It may still be a good way to go about it if you want to sell many items for a lower dollar amount that won't cost you anything if they are lost, not sold, or (worst case scenario) stolen. The alternatives you may want to consider first before listing on Ebay are the Ebay Classifieds sections (in which they are more like Craigslist rather than Ebay, and Ebay cannot hold any of your funds in escrow or help someone to take from you as a seller).

    You can still sell to the same places and reach many of the same people on Ebay, but with a "buy-it-now" that you control instead, and you don't have to worry about the questionable things that can happen during auction or post-sale if doing it traditionally.

    The Ebay classifieds page is easy to use, just as Craigslist and Backpage are as more established alternatives.

    A new contender (but one I've been able to sell quickly and easily with) is a service called OfferUp which many have decided to use as an alternative to Craigslist and others since it's yielded better results for them. The only peeve I've had with it to date is that some of the people say they want an item and then you don't hear from them or they back out, but for the most part, it's been ok in my state. It does vary from state to state and some people are not having the best time with it, so you might want to just try out Ebay Classifieds and other places where you can post and sell online first before the rest if you'd rather not deal with people for face-to-face sales.

    By the way, a really great resource that can help anyone who is trying to avoid debt, get out of debt, or do things right with both business and personal budget balancing to steer clear of it is the non-profit site called Debt.org where you can find some really great advice on how to budget to succeed instead. :) Maybe not as much as this forum, but it's a good supplement! :D
    T J Tutor likes this.
  9. Alaine

    Alaine Member

    The easiest way to manage your finances is to live within your means. Don't try to keep with the Joneses. Don't spend money on things you don't need. Spend less money on entertainment. Ditch expensive brand name products you buy and instead, get cheaper generics. You'll save a little money each month and in a few years you would probably have enough money in your savings account to start a business.
    setupdisc likes this.
  10. Jack Benoit

    Jack Benoit Member

    Sinсе mаny еntrеprеnеurs hаvе tо dеаl with irrеgulаr inсоmе, it's impоrtаnt tо budgеt yоur pеrsоnаl finаnсеs аrоund thаt tо mаkе surе thаt yоu hаvе sаvings thаt yоu саn drаw frоm in thе lеаnеr mоnths. Yоu nееd tо knоw thаt yоu саn соvеr thе еssеntiаls likе hоusing, utilitiеs, insurаnсе, аnd fооd. Sо аdd up thоsе сritiсаl еxpеnsеs аnd put аsidе еnоugh tо соvеr аt lеаst а соuplе mоnths.
    setupdisc likes this.

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