Also please mention the areas of extravagance and frugality in your budget.
How do you make your personal / household budget and manage your finances based on that budget?
Also please mention the areas of extravagance and frugality in your budget.
I have what amounts to a "post-mortem" budget: we track all of the money spent after it has been spent.
This isn't to say we don't have a "budget", We used to have a more "conventional" budget arrangement, ie, budget, monthly tab of being above or under budget. But then we found we were simply over-working our brains- and computer- when you had to amortize those annual home insurance payments, six-month dentist visits, etc along with the usual food, monthly utility expense, etc. Plus, my wife and I were both brought up to spend money wisely. Not frugal to the point of penny-pinching just for its own sake, but simply making logical decisions about spending priorities. For example - If a coat will last three times as long yet cost "only" twice as much as another coat, then go with the "expensive" one and save in the long run! Think of the long-range "lifetime expense" of a product.
I do a lot of scratch cooking, big money-saver. When I cook, my target is to make a main dish for $1.00, a side dish for 25¢, plus 25¢ per meal "for the pantry". If I make each small target, by definition, I will keep my totals in line. Given all the price hikes from the current administration's stupid moves, I may have to up my targets. But as long as we hit individual/daily targets, we will still stay under our long-range targets.
I used to do almost all of our own home repair. On our first house, I did everything from siding, and laying 5 different kinds of flooring, to painting and doing a kitchen "cabinetpak" makeover. Lately, we've had to bring in paid help, but only since I'm getting older and can't do as much as I used to without compromising my body/health.
We have a "rainy day" fund. A few weeks ago, we had to have a water heater replaced. No real problem. Old one lasted 14 years: not a bad run for an 8-year tank. But our back-up fund allowed us to just write a check for it and not incur any debt.
We pay off our ONE charge card in full, each month. We each have one for each of our businesses, plus our "home" card. That's it! Three total! No extra card for the hardware store, no extra card for the food store, etc. Just one charge card for our household and personal living expenses- and no debit card. And no outstanding debt.
The only "extravagance" in our budget is that 32% goes for property tax, federal income tax and state income tax. Add another 17% "tax" for government-required Medicare, etc., and we have to spend 49% of our income on taxes. And that is BEFORE any of our sales taxes, excise taxes, utility taxes, etc. Yet, we come out in the black- with our green- each year, more than the federal government can say.
I used to be good at saving from 2017 up until the pandemic hit in 2020. Before 2020, i’d save over 50%-75% of my checks. And no i never withdraw from my savings But i do wish i had saved my college refunds with it cause i got like $20k from school since i had academic scholarships. However, i spent that on vacations. Since last year, i’d spend my check on shopping for things to add to my collection or to go to the casino. I definitely blew those checks but it was money to spend. It didn't affect what i had already saved up nor the bills i pay for myself and others. I try to avoid ever going into debt so i pay off everything as soon as it hits. Anyways, I've been doing good these last few months. I save a majority of my check again since my collections 90% done. And i also am starting to save up to go back to vegas. Bt i dont wanna blow $3000 there just on shopping alone like i did before. I really want to get back to the point of saving 75% of my checks
Also, you have to say an amount and stick to it. I only takeout up to $300 biweekly for groceries. I make sure not to cross the limit and leave my stuff behind to avoid doing so
I’m going to have to start budgeting soon. I have some money in my checking account. But I’m going to graduate college soon and I have student loans. So hopefully I can find a decent paying job once my grace period is up.
If I were working and paying student loans, then I would use either half of my income or the majority of my income on student loans. So I’ll make up some numbers here and say I would use 20% of my income on savings, 70% on expenses (including student loans) and 10% on my wants and leisurely activities
Basically I buy what I want when I want it. I really don't "budget" other than a general idea of knowing I have more than enough to cover what I want/need.
My needs are few. I try to keep my burn rate low. I don't like subscription type services that require ongoing fees, but of course you can't get away from that in a lot of things.
I will spend extravagantly when I think it is fun to do so. Often on vacation or for unique experiences. I will be frugal when I think it makes sense to do so. I don't spend $6K on a watch. While I have many watches, I typically don't wear them anyway. I don't typically wear a lot of jewelry. I have nice clothes, but it's not what I typically gravitate towards. I'm comfortable in shorts or jeans and a t-shirt or polo shirt. I spent 15 years in a suit and tie, but then moved to another large software company where the corporate uniform is basically cargo shorts, a t-shirt and sandals.
When I look at large purchases, it's a compromise. Let's say I want a car. I look at what I want (Lamborghini, Ferrari) and then at what my minimum needs are (Honda). If there is not a lot of difference, I might go with the high end. In this case there is a lot of difference, so I start digging into the details. What is it about the high end that I want (looks awesome, does over 200MPH, handles great, fun to drive) verses what I really need (carry 2 or more people and some groceries reliably). Then I start looking for something that covers the basic needs and incorporates as many of the wants as I'm willing to pay for without feeling like an idiot. Maybe something that carries 4 people, has a trunk, looks good, goes over 170MPH with a computer reprogram to remove the electronic limitations and still handles great, throw in a convertible top for fun and I got my BMW M3.
I think it's wasteful to buy a brand new car, so I'll buy a car that is a few years old and let someone else take the showroom drop.
Like I said before, I like to keep my burn rate low. I don't want a huge mortgage. I have an average sized house. I also like to work constantly to generate more passive income from as many streams as possible.
I like to pay cash for as many things as possible. When I say cash, I mean I don't finance things if I can help it. I pay for most things on a credit card to get the mileage, but pay it off every month completely.
Spend the money for quality if it's something you will use a lot. You won't be sorry. By the cheap one if it's a single use or very little use item.
I don't really keep a budget that I write down. It's mostly in my head.
But I can type it out the best I can. I'm a 34-year-old, single, UX designer, living in the Midwest. Just got a promotion recently to 115k so this is my new budget.
~$3,000 every 2 weeks.
~$6,000 a month.
~$80,349 a year after taxes (115k before taxes)
So here is about how I have my budget set up:
1,100 - rent
500 - student loans
500 - 401k
500 - car payment
500 - Fun (usually dates, and going out with friends)
300 - Food
200 - Utilities
200 - Weed
100 - Netflix, Spotify, Hulu, Amazon Prime
100 - Gas
Expenses = $4,000 per month / $48,000 per year
80,000 - 48,000 = $32,000 savings per year
I also spend about 4,000 on travel every year. Bringing my total savings to $28,000k per year.
In the next 2 years, my car and student loan payments will be paid off, adding an additional 1,000 per month. But I will also buy a house soon. But that should be less than my current rent.
Over 50 and just started saving retirement. Does that answer your question? Fortunately over the years I've plugged into several different streams of income, some of them are consistent others are not. Still I've always found that my needs are able to be met, and I haven't had to struggle too terribly for great lengths of time. I have however gotten used to it in very hand-to-mouth and putting faith and trust and the fact that the money will just be there when the time comes that it's needed. I do not suggest that this is a way to do this. But I've been lucky enough unfortunate enough that it has happened that way for me. But now I talked to a friend of mine when we started talking about retirement savings mechanisms and investments. And I choked down the entire goiter of fear that it presented for me. So I'm trying to do the responsible thing and take a more pragmatic and prudent approach to my fiscal position. Truth of the matter is I am not a saver and this is really hard for me to do. All of a sudden I don't have cash to spend, because it's going into an investment account. Mad money I used to go to the bar with has been invested all in Bitcoin. And if I can ever actually quit smoking cigarettes that's $300 a month that I can tuck into an IRA.
I'm also really started studying the the stock market. This is an ongoing thing and I've had good results and bad results equally consistent. But let me stress emphatically I don't know what the f*** I'm doing. But for me that's part of the adventure in the fun of it and yeah it's kind of fun. I mean stock market is kind of like going to Vegas. A lot of very smart you know high level people say they got a system they got all figured out, but they're just like any other bookie. They're just dressed way better
Well I'm single and live on my own but I'm quite strict on my budget, I have a separate account for household bills and monthly subscriptions, the money is transferred into that account as soon as my wages come in. I also save 20% of my salary in various different types of savings. The rest is for me to spend how I see fit. I don't have an extravagant lifestyle, but I like good quality food and entertain at least once a week, and that comes out of my surplus cash. I buy a couple/few of items for myself each month, may it be clothes or gadgets or just something for the house. Larger maintenance of the house generally comes out of the savings, and things like travel. Whatever I have left at the end of the month in the surplus cash goes into my savings. I'm by no means rich but I'm very comfortable and have always been responsible with money, but also never really gone without as an adult. As a child I regularly went without, but not because my parents were poor, but because they were tight fuckers and have always sat on their money, still I guess that means I have a decent inheritance coning. I'm quite a generous person and will help people out if needed and they are deserving, but always have enough money put aside should I need it.
Mine is pretty simple my paycheck is direct deposit every week and usually this every time I get one too for side jobs every week so I try to live off that money and paid my bills with that cash and the way the world is headed I just been leaving the Money in the Bank I don't really go out and buy anything except for food and but what I want something I know I can go buy it. My house is paid for my car is paid for it all my toys are paid for. And when I find what I'm looking for I'll probably start building a rat rod and I need money for that
Our household budget is a separate account from our personal or business accounts. It's used for bills and food primarily. The only real extravagant expenses from that account is Sunday brunch every week for the family
But what your really asking about is our extra funds. So that's where it gets complicated. Both my wife and I keep separate personal accounts though she has recently left the workforce to build a YouTube channel. And I also own a small business that also has separate accounting. I often buy meals out usually 2 or 3 times a week. While my wife will sometimes treat for snacks and soda. We also splurge on clothing and occasionally a night out at a bar. We also have a fairly extensive sex toy collection that is a bit costly. I also have an investment account that I pay into regularly (not a work 401k but an actual account) and we're planning a trip to California around the holidays.
I mostly just pay the bills and, sometimes, I'll buy something on eBay. Last week, I got the Man From UNCLE series on DVD and the 4th season of, "Heroes". A total of $40 or $50. Today, I'm hoping to go buy a lawn mower and a few other tools I might need. Otherwise, I just keep mental tabs of how much I have (It's a LOT less than I SHOULD have, thanks to me greedy ex-sisters!!) and don't really spend it on anything else. At the moment, I might need nearly everything I've got to keep from losing the house and car and to possibly pay $2200 in fines for the car in the drive way and having no way to get my grass cut all year!! So, I'm trying NOT to spend, at the moment but, I just had a hankerin' for those two DVD sets. I'll consider them a b-day present to myself. I don't get them from anyone else anymore so, I buy them (and Christmas presents) for myself.
I may also need some of this money to sue the shit out of those two bitches!!!
Well, I made an XXL spreadsheet and there’s a bunch of different type of budgeting option on there I utilize one of them to me it’s very simple my total expenses in total income and then the amounts that everything normally comes out to and I budget towards those. I list everything between property taxes utility fees even entertainment such as gymAnd Netflix and streaming services. And I stick to it down to the last penny and if I get any extra added in there and take them away as soon as I pay that bill so I know what I’ll have left same thing with income once I’m finished with that amount then I take it off so I could see where I’m at. I’m still working on it
Assets = Things, that put money in my bank
Liabilities = Things, that burn money in my bank
It's more than just making much more money than I can comfortably spend.
It's more than getting a vasectomy and remaining childfree.
It's more than having 3 distinct sources of income.
It's more than investing in stocks and bonds and collecting dividends.
It's more than renting out property to tenants.
It's more than running, owning, co-owning or help out a business.
It's more than fetching discounts, coupons, special offers and deals.
It's more than buying and hoarding items of low value, so that their value is increased by 10 to over 1000 times in 3, 5 or 10 years.
It's more than avoiding paying taxes and getting tax cuts or lower taxes.
Finances and accounting is a special philosophy not to take lightly. Those, who master it are successful and prosperous and enjoy the beauties of life.
I'm frugal with household bills such as electricity. I keep the lights off as much as possible. I'm also frugal with groceries. I only buy stuff that I know with certainty that I'll eat within the next few days. I'm a bit extravagant with clothing, shoes, and hairstyles.
Fuck knows I’ve got an accountant for that.
over lockdown I saved a ridiculous amount but also gave some tenants rent free over lockdown.
I tend to spend cash on cars, I dread to think what depreciation costs me 😂😂
at the moment I’ve spent nothing on clothes for me.
I’ve got much more coming in than going out, even my daughter struggles to spend it, although she’s tried lol.
We got money for rent, food, pets, drugstore and personal hygiene items on a shared bank account.
600€ for rent
200€ for food
60€ for pets
20€ home and household Insurance
/ 900€ total.
So 500€ each, to have a little bit extra.
As we moved into a shared appartment only recently we may need to adjust these numbers slightly.
I try my hardest to not spend any money on anything. I recycle stuff. Wear clothes until they fall apart., only buy things that are on sale, do not waste food and try to conserve electricity and heating oil.
I try to do most home and auto repairs myself.
Other than that, both my wife and I have money taken out of our paychecks for a retirement account and we have checking and savings accounts.
I'm not great with budgeting but I am fairly good with tracking my income and expenses and that can go a long way in itself. I use excel spreadsheets to input my income and expenses, tally up the totals, get net income, categorize expenses, averages, etc.
Also, I like to keep some savings in case anything comes up - which has helped a lot during the pandemic.
When I was younger, my dad made the budget plans. Ever simce he died, and I started working, I'm the one who manages the budget in the house. I usually determine how much we need for food and to pay the bills. I know how much each of us eats, do I can assume how much we need for food. Bills are basically the same every month. So I manage to work out a budget.
Use an excel sheet and map out all the must payments and then come up with what is your spending budget after rent, food and clothes and then whats left is hobby and or spending money.
Though I HIGHLY suggest saving like 10 to 15% of whats left and whatever change you have that are like pennies and nickles etc. And once a year bring it to your bank and cash out the surprisingly high amount of savings. ITS SHOCKING what the average person can make by saving their pennies, nickles and dimes if you don't spend them or toss them cause they are change. >.>
I think my parents make 30 to 70 dollars a year on change alone XD. That they accumulate from purchases with cash. Thats like 2-5 decent like fast food meals XD.
My housemate and I contribute to a household account that pays ALL shared household bills.
Everything else is an area of extravagance (food, etc). Frugality in my budget is a must, because I live in an expensive large metropolitan city on a fixed income not geared to inflation.
When I was working, I put 12% of my gross into a 401(k) and the company matched 6% of that. I saved up a nice nest egg after 30 years with that company.
Don't really have a budget. Buy whatever I want. We split bills and groceries 30/70 .
Yes. It's just me, he has a kid so he pays more
That's just what we agreed on 🤷🏻♀️
I have terrible financing skills lol. Ill budget and then see a pair of shoes I really like and... yeah my finances are out the window.
I make a living by non verbally humiliating professors that struggle with technology and I get the crowd (students) paying attention to my expert knowledge :p. Nah but in all seriousness, I basically help professors when they report a problem and I also check classrooms when classes don't happen to make sure everything works so we don't get calls being like "bRuH iM iN bUiLdInG hKpMiY aNd My RsKnJu DoNt DiSpLaY pLs HaLp." Pretty much, I try my best to help professors but sometimes I don't even know how to fix a problem like today I was trying to fix a problem and literally in my head I'm just like "dude I have no idea what's going on why was I sent here man I'm lost." But then the professor said she was good so I was like "oh yeah sure totally that's all you professor good job you beat the tech expert." Anyways, how I spend my budget is actually a more serious conversation. Since I'm a student my budget and resources are limited so I try to do the best that I can knowing I don't have the same resources most other people attending university have such as I don't have a car. I don't really have a set budget it's basically just like pay rent, eventually pay off the credit card every month whatever the credit card has on it (obviously I avoid spending too much right now), and then pay for other expenses that might happen like a medical bill. A lot of people ask me how I operate on a small budget and my honest answer is my mentality. I know my resources are scarce and therefore that usually means your money will be tight but you do what you can with what you got so you can get by every week or every month. Is it fun? Definitely not I have had countless experiences with hunger pains or as some of my favorite rappers call it, "grown-up pains." Can anybody do it? Of course! In my opinion this lifestyle has taught me a lot in general and I think anybody can learn from being in "the bottom" like me but honestly I consider my budget to be a success and myself to be a success because my definition of success is being alive and anything else like having a budget, getting paid, taking a step, whatever you want is just additional happiness.