Comments on: A Quick and Dirty Budget http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/ personal finance that makes cents Fri, 09 Jan 2009 13:52:40 +0000 http://wordpress.org/?v=2.5.1 By: DFC http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-147839 DFC Fri, 12 Sep 2008 11:56:13 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-147839 After all these years I'm finding out that what I've been referring to as a budget is a mere spending plan. Oh well, it worked twice for us. once to pay off our credit cards and saving for a down payment before getting the house, secondly to get us out of debt very recently (except mortgage) I do have 2 or 3 official budgets that I just fill in the categories to see how we're doing, but it's hard to work with a budget because you have bills going out throughout the month. After all these years I’m finding out that what I’ve been referring to as a budget is a mere spending plan.
Oh well, it worked twice for us. once to pay off our credit cards and saving for a down payment before getting the house, secondly to get us out of debt very recently (except mortgage)
I do have 2 or 3 official budgets that I just fill in the categories to see how we’re doing, but it’s hard to work with a budget because you have bills going out throughout the month.

]]> By: Mark Nelson http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144891 Mark Nelson Mon, 18 Aug 2008 10:46:01 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144891 Budgets are tough to keep. It is very easy for me or anyone else for that matter to write about the importance of a budget. They are important. Even if you don't follow it setting up a budget helps you see where you are spending your money. I agree, pay yourself first. Set up an automatic withdrawal to some account that you will leave alone. (If that is possible) Budgets are tough to keep. It is very easy for me or anyone else for that matter to write about the importance of a budget. They are important.

Even if you don’t follow it setting up a budget helps you see where you are spending your money.

I agree, pay yourself first. Set up an automatic withdrawal to some account that you will leave alone. (If that is possible)

]]> By: Tabs http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144322 Tabs Wed, 13 Aug 2008 19:32:59 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144322 That was quick and dirty, great for time management, the list is effective and I can get it done now, really I am implementing the five steps today. Thanks for sharing... -Tabs That was quick and dirty, great for time management, the list is effective and I can get it done now, really I am implementing the five steps today. Thanks for sharing…

-Tabs

]]> By: Jenna http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144184 Jenna Wed, 13 Aug 2008 08:13:56 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144184 I hate saving money. When you know that there is a certain amount of money you can spend, you want to spend much more. That's why it is better to buy only the necessary things. I hate saving money. When you know that there is a certain amount of money you can spend, you want to spend much more. That’s why it is better to buy only the necessary things.

]]> By: Sandi http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144139 Sandi Tue, 12 Aug 2008 23:36:22 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144139 Sam: $500 every 2 weeks is a LOT of money. I make good money, and I use $400 a MONTH for gas, eating out, incidentals, etc. (that I don't track). If you can't get him to agree to $100 a week, can you at least get him to agree that any future raises go to savings, while the spending stays constant? So you can make incremental progress that way. Otherwise, the suggestion to move some categories that are included with that $500 into the "tracked and budgeted" part of your spending plan, and reducing your cash expenses proportionally is a good one. Sandi Sam:

$500 every 2 weeks is a LOT of money. I make good money, and I use $400 a MONTH for gas, eating out, incidentals, etc. (that I don’t track).

If you can’t get him to agree to $100 a week, can you at least get him to agree that any future raises go to savings, while the spending stays constant? So you can make incremental progress that way.

Otherwise, the suggestion to move some categories that are included with that $500 into the “tracked and budgeted” part of your spending plan, and reducing your cash expenses proportionally is a good one.

Sandi

]]> By: Abby http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144136 Abby Tue, 12 Aug 2008 23:14:03 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144136 I completely agree about not setting a strict budget but a more generalized plan. This is because of my husband's health conditions. He has *severe* eczema that flares up quite often and, lately, MRSA problems (because it loves eczema patches). So some months we see a doctor just 2 times at normal intervals. Some months, it's closer to 8. At $15 each, that's awfully hard to plan for! I completely agree about not setting a strict budget but a more generalized plan. This is because of my husband’s health conditions. He has *severe* eczema that flares up quite often and, lately, MRSA problems (because it loves eczema patches). So some months we see a doctor just 2 times at normal intervals. Some months, it’s closer to 8. At $15 each, that’s awfully hard to plan for!

]]> By: Jesse http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-144009 Jesse Tue, 12 Aug 2008 11:23:46 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-144009 I found that Motley article funny because the title makes the promise of a budget w/o work (at least that's how I interpret 'for lazy people') and then their first suggestion is to track your spending. That takes work! But the value is there nonetheless and if there were just one step that absolutely needed to be done, it'd be that one. A budget is basically your money priorities written down. It can be as rigid or flexible as you like, where you get down into the specifics and decide how much you'd like to spend on Toothepast:Minty or be as general as Savings. The key is to be using some method that helps you ensure that your money behavior is in line with your values, whatever those may be, a la Joe Dominguez in Your Money or Your Life. I found that Motley article funny because the title makes the promise of a budget w/o work (at least that’s how I interpret ‘for lazy people’) and then their first suggestion is to track your spending.

That takes work!

But the value is there nonetheless and if there were just one step that absolutely needed to be done, it’d be that one.

A budget is basically your money priorities written down. It can be as rigid or flexible as you like, where you get down into the specifics and decide how much you’d like to spend on Toothepast:Minty or be as general as Savings.

The key is to be using some method that helps you ensure that your money behavior is in line with your values, whatever those may be, a la Joe Dominguez in Your Money or Your Life.

]]> By: CarrieK http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143997 CarrieK Tue, 12 Aug 2008 06:52:05 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143997 This is so helpful. I am a quintessential lazy budgeter. Right now I use the cash envelope method. But this post has inspired me to take it all one step closer to organization. Many, many thanks. This is so helpful. I am a quintessential lazy budgeter. Right now I use the cash envelope method. But this post has inspired me to take it all one step closer to organization. Many, many thanks.

]]> By: Diatryma http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143990 Diatryma Tue, 12 Aug 2008 05:33:09 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143990 A budget helped me track my spending. I have it set up in Excel, a column of what I spend on and how much in each-- rent, tuition, food, books, things like that. There's another column with an upper limit, and the difference between the two is displayed. This wouldn't matter, except that it makes me put the numbers in. When I didn't have something to add everything up by category, I didn't keep track. When I did everything mentally, I spent everything-- not over, but I knew about how much I had and that I had a bit of wiggle room. This way, every month, I start a new pair of columns, and every month, I have money to put into savings. Not a clue what to do once I get enough savings to mess with. But hey, it works. A budget helped me track my spending. I have it set up in Excel, a column of what I spend on and how much in each– rent, tuition, food, books, things like that. There’s another column with an upper limit, and the difference between the two is displayed.
This wouldn’t matter, except that it makes me put the numbers in. When I didn’t have something to add everything up by category, I didn’t keep track. When I did everything mentally, I spent everything– not over, but I knew about how much I had and that I had a bit of wiggle room. This way, every month, I start a new pair of columns, and every month, I have money to put into savings.
Not a clue what to do once I get enough savings to mess with. But hey, it works.

]]> By: Ian the Firstborn http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143984 Ian the Firstborn Tue, 12 Aug 2008 03:12:32 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143984 I have been budgeting and tracking my spending since I read Dave Ramsey's Total Money Makeover, and it has really been a boon to me. I do everything in Excel and can therefore easily add up what I've spent. It becomes a game to spend a little less than what I budgeted. By facing the truth about my financial situation every month, I also have much less creeping anxiety about money; before budgeting, I always guessed and worried if my intuitive math was right or wrong. I have been budgeting and tracking my spending since I read Dave Ramsey’s Total Money Makeover, and it has really been a boon to me. I do everything in Excel and can therefore easily add up what I’ve spent. It becomes a game to spend a little less than what I budgeted.

By facing the truth about my financial situation every month, I also have much less creeping anxiety about money; before budgeting, I always guessed and worried if my intuitive math was right or wrong.

]]> By: Miss Gisele B. http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143983 Miss Gisele B. Tue, 12 Aug 2008 03:04:05 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143983 Sam, The easiest way to save is to set up an automatic saving plan. Your bank can set aside an amount that you designate each month or every two week. This is the best way to "set it" and "forget it" ... that means that if you keep it up month after month you end up saving effortlessly. I like you point about not overspending...it's soooooooo easy to do so it's important to keep the what we "need" versus what we "want" in check. Thanks for this excellent reminder! Miss Gisele B. Sam,

The easiest way to save is to set up an automatic saving plan. Your bank can set aside an amount that you designate each month or every two week. This is the best way to “set it” and “forget it” … that means that if you keep it up month after month you end up saving effortlessly.

I like you point about not overspending…it’s soooooooo easy to do so it’s important to keep the what we “need” versus what we “want” in check.

Thanks for this excellent reminder!

Miss Gisele B.

]]> By: Adrienne http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143979 Adrienne Tue, 12 Aug 2008 00:03:51 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143979 Sam, Sounds like you're doing really well. Since you asked for advice here's a suggestion. You could move some of your basic categories (like groceries and gas) out of the $500 and into a budgeted group. (then reduce your $500 by that amount). This would put a budget to some of your needs but still allow Mr. Sam some undocumented cash for wants (eating out, entertainment, etc.). Sam,

Sounds like you’re doing really well. Since you asked for advice here’s a suggestion. You could move some of your basic categories (like groceries and gas) out of the $500 and into a budgeted group. (then reduce your $500 by that amount). This would put a budget to some of your needs but still allow Mr. Sam some undocumented cash for wants (eating out, entertainment, etc.).

]]> By: Mo Money http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143973 Mo Money Mon, 11 Aug 2008 22:10:57 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143973 I like the idea of the post. Budgeting is like dieting, evreryone know you should do it, but it is against human nature. In the end you have to be very dedicated or you will fail. I like the idea of the post. Budgeting is like dieting, evreryone know you should do it, but it is against human nature. In the end you have to be very dedicated or you will fail.

]]> By: Student Budget http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143971 Student Budget Mon, 11 Aug 2008 22:01:39 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143971 I totally agree on the idea of tracking. Most banks offer online account now, it's much easier to do than before. Since I started tracking, I've been surprised at how much small amounts can add up, and thus trying to refrain myself from seemingly harmless $3 or $5 sales items. If I don't absolutely need them, I should not buy them, otherwise, they will quickly bump up the bill. I totally agree on the idea of tracking. Most banks offer online account now, it’s much easier to do than before. Since I started tracking, I’ve been surprised at how much small amounts can add up, and thus trying to refrain myself from seemingly harmless $3 or $5 sales items. If I don’t absolutely need them, I should not buy them, otherwise, they will quickly bump up the bill.

]]> By: Sam http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143968 Sam Mon, 11 Aug 2008 21:16:25 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143968 I'd like to move from a spending plan to a more detailed budget. Right now we pay ourselves first, we pay our monthly bills (mortgage, insurance, utility, anything with an actual bill), we put aside money for our savings goals and then we each have $500 for 15 days for variable expenses (grocery, gas, dry cleaning, entertainment, eating out, home improvement etc.) While I'd like to have actual budget categories for our variable expenses I don't think Mr. Sam will agree. He likes to have $500 to spend without having to track it, think about it, etc. and since 90% of the time he spends his $500 on groceries, gas and home improvement expenses I can't really complain. We've made dramatic changes in our finances since 01/01/07 (paid off all our non mortgage debt, better combined our finances, agreed on retirement and savings goals, agreed on spending plan) I'm pretty sure I've pushed as far as I can for now. Any advice? I’d like to move from a spending plan to a more detailed budget. Right now we pay ourselves first, we pay our monthly bills (mortgage, insurance, utility, anything with an actual bill), we put aside money for our savings goals and then we each have $500 for 15 days for variable expenses (grocery, gas, dry cleaning, entertainment, eating out, home improvement etc.) While I’d like to have actual budget categories for our variable expenses I don’t think Mr. Sam will agree. He likes to have $500 to spend without having to track it, think about it, etc. and since 90% of the time he spends his $500 on groceries, gas and home improvement expenses I can’t really complain. We’ve made dramatic changes in our finances since 01/01/07 (paid off all our non mortgage debt, better combined our finances, agreed on retirement and savings goals, agreed on spending plan) I’m pretty sure I’ve pushed as far as I can for now.

Any advice?

]]> By: A. Dawn http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143965 A. Dawn Mon, 11 Aug 2008 21:01:29 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143965 Budgets never work; however, tracking spending worked for me in the past. I wrote an article on this: http://adawnjournal.com/2008/05/06/personal-finance-software-part-1/ I hope it will be helpful. Cheers. A Dawn Journal www.adawnjournal.com Budgets never work; however, tracking spending worked for me in the past. I wrote an article on this: http://adawnjournal.com/2008/05/06/personal-finance-software-part-1/
I hope it will be helpful. Cheers.
A Dawn Journal
http://www.adawnjournal.com

]]> By: Unspender http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143964 Unspender Mon, 11 Aug 2008 21:00:19 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143964 I can't emphasize how important #1, tracking spending is. I always found sticking to a budget difficult but that was because I had no idea how much I was spending before. Thanks for the list! I can’t emphasize how important #1, tracking spending is. I always found sticking to a budget difficult but that was because I had no idea how much I was spending before. Thanks for the list!

]]> By: RDS http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143960 RDS Mon, 11 Aug 2008 20:17:50 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143960 I'm with you, JD. My wife and I enjoy saving and do a good job managing our money. However, neither one of us enjoys budgeting. We are both very good about not spending money that we don't have. We have been very successful in managing our spending by making sure that all of our investment and savings accounts automatically pull money from our checking account every month. This way we are able to met our financial goals and limit our spending without tracking every penny (and believe me, we don't) Often we find that we are able to slowly ratchet up the amount of money that we are saving each month. RDS http://financialvalues.blogspot.com/ I’m with you, JD. My wife and I enjoy saving and do a good job managing our money. However, neither one of us enjoys budgeting. We are both very good about not spending money that we don’t have. We have been very successful in managing our spending by making sure that all of our investment and savings accounts automatically pull money from our checking account every month. This way we are able to met our financial goals and limit our spending without tracking every penny (and believe me, we don’t) Often we find that we are able to slowly ratchet up the amount of money that we are saving each month.

RDS

http://financialvalues.blogspot.com/

]]> By: Rob Madrid http://www.getrichslowly.org/blog/2008/08/11/a-quick-and-dirty-budget/#comment-143959 Rob Madrid Mon, 11 Aug 2008 20:16:18 +0000 http://www.getrichslowly.org/blog/?p=1972#comment-143959 another idea for non budgeters I learned from my Dad, two accounts, one for fixed expenses, rent/mortgage utilities debt snowball savings etc. And the other for spending. Divide fixed amount by you monthly pay (weekly bi weekly etc) and put that amount in each pay period, the balance is then yours to spend. Your bills are covered and no hassle with balancing the budget each month. simple another idea for non budgeters I learned from my Dad, two accounts, one for fixed expenses, rent/mortgage utilities debt snowball savings etc. And the other for spending. Divide fixed amount by you monthly pay (weekly bi weekly etc) and put that amount in each pay period, the balance is then yours to spend. Your bills are covered and no hassle with balancing the budget each month.

simple

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