Comments on: An Effective Three-Step Budget http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/ personal finance that makes cents Sun, 08 Nov 2009 13:31:51 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Jeg http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-139043 Jeg Sat, 05 Jul 2008 16:30:22 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-139043 Have you guys played the Tower defense game. It's a great game. Teach you about savings.... You need to budget your money to buy just enough towers to kill the waves (enemies) and you need to save some money to generate interest. At the later part of the game, you can spend a lot of money for expensive towers since the money you save at the beginning of the game keeps generating interests. Sometimes you have to slowdown to get fast results. So get rich slowly. You'd be surpise how fast it could get. I am not reach yet but I have a healthy bank account. Life's not that great, I get depressed a lot of times but you need persistence and perseverance if you want to get rich. Have you guys played the Tower defense game. It’s a great game. Teach you about savings…. You need to budget your money to buy just enough towers to kill the waves (enemies) and you need to save some money to generate interest. At the later part of the game, you can spend a lot of money for expensive towers since the money you save at the beginning of the game keeps generating interests. Sometimes you have to slowdown to get fast results. So get rich slowly. You’d be surpise how fast it could get. I am not reach yet but I have a healthy bank account. Life’s not that great, I get depressed a lot of times but you need persistence and perseverance if you want to get rich.

]]> By: 8 Ways to Take Control of Your Finances in 2008 ? Get Rich Slowly http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-111047 8 Ways to Take Control of Your Finances in 2008 ? Get Rich Slowly Mon, 07 Jan 2008 13:01:00 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-111047 [...] for your money. There are a variety of budgeting methods you can choose, from Andrew Tobias’ three-step budget to the 60% budget. Last October, I wrote about the spending plan, a budgeting method for [...] [...] for your money. There are a variety of budgeting methods you can choose, from Andrew Tobias’ three-step budget to the 60% budget. Last October, I wrote about the spending plan, a budgeting method for [...]

]]> By: BillinDetroit http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-83481 BillinDetroit Tue, 10 Apr 2007 05:39:48 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-83481 Look, take the 20% out first. Gross, net ... it doesn't make any difference. Just choose one and stick with it. It's what comes next that matters and what comes next is this: learn to live on the remainder. Or deal with the consequences that are the natural result of ignoring sound financial advice ... like I, at age 55, am. Look, take the 20% out first. Gross, net … it doesn’t make any difference. Just choose one and stick with it. It’s what comes next that matters and what comes next is this: learn to live on the remainder.

Or deal with the consequences that are the natural result of ignoring sound financial advice … like I, at age 55, am.

]]> By: Tim Deniston http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-38405 Tim Deniston Wed, 03 Jan 2007 15:31:09 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-38405 This magical 20%... does this include emergency savings/high-yield savings or should that be taken from the regular 80%? This magical 20%… does this include emergency savings/high-yield savings or should that be taken from the regular 80%?

]]> By: Part 7 - Simplify Your Life (Authentic) at Littlemummy.Com http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-14104 Part 7 - Simplify Your Life (Authentic) at Littlemummy.Com Thu, 09 Nov 2006 14:11:42 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-14104 [...] You can read more on budgeting and investing here in a ’simple’ 3-step plan to growing rich slowly. [...] [...] You can read more on budgeting and investing here in a ’simple’ 3-step plan to growing rich slowly. [...]

]]> By: Get Rich Slowly » Want to Save? Give up the Big Things! http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-4243 Get Rich Slowly » Want to Save? Give up the Big Things! Wed, 26 Jul 2006 14:32:16 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-4243 [...] It turns out that Tyagi doesn’t have anything against saving money on the little things. In fact, she believes that some people need to cut the little expenses, which she terms Wants. She recommends a budget structured thusly: 50% of after-tax money spent on Needs, 30% on Wants, and 20% on Savings. She says that if any of these are out of balance, you’re not financially healthy. (Note that this is a refinement of the Andrew Tobias three-step budget.) [...] [...] It turns out that Tyagi doesn’t have anything against saving money on the little things. In fact, she believes that some people need to cut the little expenses, which she terms Wants. She recommends a budget structured thusly: 50% of after-tax money spent on Needs, 30% on Wants, and 20% on Savings. She says that if any of these are out of balance, you’re not financially healthy. (Note that this is a refinement of the Andrew Tobias three-step budget.) [...]

]]> By: Quick Linky Dinks at 2:48AM [The B-Sides] http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3602 Quick Linky Dinks at 2:48AM [The B-Sides] Sun, 23 Jul 2006 06:42:55 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3602 [...] Optimus Prime voice actor chosen for Transformers movie. Johnny Cash on Sesame Street New trailer for The Fountain. Get Rich Slowly, An Effective Three-Step Budget Diary of a girl from 1930s discarded, discovered and reuunited with its owner. Filed under: Interesting, Links Posted by Mark on 07.23.06 | Related Entries [...] [...] Optimus Prime voice actor chosen for Transformers movie. Johnny Cash on Sesame Street New trailer for The Fountain. Get Rich Slowly, An Effective Three-Step Budget Diary of a girl from 1930s discarded, discovered and reuunited with its owner. Filed under: Interesting, Links Posted by Mark on 07.23.06 | Related Entries [...]

]]> By: VinTek http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3442 VinTek Fri, 21 Jul 2006 17:36:25 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3442 Mike, Tobias has an interesting approach with regard to your question. Somewhere, probably nearby, maybe even in your neighborhood, there's somebody who makes less than you (maybe 20%), who is managing to save money, managing to pay for a home, and who doesn't feel deprived. Live like *them*. Ratchet down your lifestyle a little bit. We bought 2 cars last February. While we could afford Acuras (we were looking at the TL and TSX models), we bought Hondas (the Accord (6-cyl) and Civic). And we're perfectly *happy* not having the more expensive cars. Heck, I'm happy not having to fill the tank with premium gas! The cars we got rid of had 11 years/211K miles and 14 years/130K miles on them respectively. A large part of this site is about economy and getting the most out of the money you spend. If you manage to apply only a part of what you read here, there's a good chance you can put away that 20% and still eventually earn enough to buy that home you want. It may not be the fanciest home on the block. It may need work. But it'll be yours and it will be the foundation for moving up later. Don't forget, part of what you put into savings (like a 401(k), you get back in taxes. Part of what you put into mortgage payments, you get back in taxes. Run the numbers and figure out how to make it work. Mike,

Tobias has an interesting approach with regard to your question. Somewhere, probably nearby, maybe even in your neighborhood, there’s somebody who makes less than you (maybe 20%), who is managing to save money, managing to pay for a home, and who doesn’t feel deprived. Live like *them*.

Ratchet down your lifestyle a little bit. We bought 2 cars last February. While we could afford Acuras (we were looking at the TL and TSX models), we bought Hondas (the Accord (6-cyl) and Civic). And we’re perfectly *happy* not having the more expensive cars. Heck, I’m happy not having to fill the tank with premium gas! The cars we got rid of had 11 years/211K miles and 14 years/130K miles on them respectively.

A large part of this site is about economy and getting the most out of the money you spend. If you manage to apply only a part of what you read here, there’s a good chance you can put away that 20% and still eventually earn enough to buy that home you want. It may not be the fanciest home on the block. It may need work. But it’ll be yours and it will be the foundation for moving up later. Don’t forget, part of what you put into savings (like a 401(k), you get back in taxes. Part of what you put into mortgage payments, you get back in taxes. Run the numbers and figure out how to make it work.

]]> By: Gwyn http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3346 Gwyn Thu, 20 Jul 2006 23:09:49 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3346 Then you probably cant afford to buy a home. Look at it this way, if you can only "afford" to buy a home using 100% of you income and you never save anything, then how are you going to put money aside for emergengies, or save for retirement, or have kids or any of that other stuff that people do with their money? Then you probably cant afford to buy a home. Look at it this way, if you can only “afford” to buy a home using 100% of you income and you never save anything, then how are you going to put money aside for emergengies, or save for retirement, or have kids or any of that other stuff that people do with their money?

]]> By: Mike C. http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3331 Mike C. Thu, 20 Jul 2006 20:33:31 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3331 What if saving 20% makes it impossible to buy a home with the remaining 80%? This is what's on my mind and no one seems to be talking about it. What if saving 20% makes it impossible to buy a home with the remaining 80%? This is what’s on my mind and no one seems to be talking about it.

]]> By: Alex http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3315 Alex Thu, 20 Jul 2006 17:07:15 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3315 Invest 20% of what you earn - is that net or gross? Invest 20% of what you earn - is that net or gross?

]]> By: Rob http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3305 Rob Thu, 20 Jul 2006 15:28:49 +0000 http://www.getrichslowly.org/blog/2006/07/19/an-effective-three-step-budget/#comment-3305 Have you ever checked out the 60% solution article on MSN Money? This post reminded me of some of what that was talking about. Have you ever checked out the 60% solution article on MSN Money? This post reminded me of some of what that was talking about.

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