Lately I've been trying to work out a budget for myself - it's frustrating knowing that i SHOULD save but there are things that I want... and things that I HAVE to pay for and I end up just paying bills and throwing the rest into savings (usually at least 25%) and not really "rewarding" myself because I'm afraid of spending money or rather, what if I need it later sort of thing. Also for me, it feels like once I place the money into my savings I feel like I should NEVER take any money out but at the same it's like.. what am I saving for? I just want to figure out how to spend my money (or save my money) whichever way you look at it. ...to just be able to spend my money without feeling guilty about it.
So yeah I was just wondering if you guys can tell me a little bit of how you handle your money.
Do you have yourself on a budget (how much you allow yourself to spend)?
Assuming you do have a savings account, is it strictly there just for emergencies or something or are you actually saving up for something?
I think it is fantastic that you save money and 25 percent is outstanding! Most people spend beyond their means. Here is a thought for getting the things you want to get. Put 20 percent towards your savings. Take the other 5 percent and give yourself an allowance. Put this allowance towards the things you want.
Another thing, make sure your savings are working for you and not sitting in a savings account that has low interest rate even if it is just a Certificate of Deposit (CD). At work, put the maxinum allowable amount into your 401k plan at work or at least the maxinum matching amount.
Yes, I am on a budget. I don't spend much extra. Right now I am saving towards a new VCR/DVD recorder (old VCR died). Hpoing for some good sales before Christmas.
I have to make the money I have last for food, clothing, text books, christmas gifts etc.. until I can earn more next summer. So I'm on a very tight budget. Anything 'extra' will go towards paying tuition next year. I'm only 21 and I already have a huge dept hanging over me -___-;
As far as spending goes... I reward myself occasionally, maybe once a month? or once every two months? I'll buy a couple books, and a bag of chocolates. which I suppose to most sounds kinda silly, but.... *shrugs* I like chocolate ^^; and I have an addiction to books XD
well that's a good poll aiming to find the spendthrift attitude of people, but I would have rather have ticked both the answers because both answers are true someway or the other way. You know that extreme of anything is bad thus If there will be more money then the greed will arise to attain further more money, and I have a personal experiance that this greed may give more family related problems. If we take a case study then in India everyone knows that ambani brothers are the richest by their reliance shares and industries they have but the same money have cast a ridge between them. The news was highlighted, led to some amount of defame for them so It was bad.
On the other hand if there extreme poverty then also no one can live properly because there would be less to eat, less shelter, torn clothes. Many people in africa and india, etc live in this way and they feel difficult to make their ends meet.
Thus I would have the middle opinion and would say that money is good only if it is used for good, if it is spent like water it has no use!!
Well, I have a savings account, and there was quite a lot of money on it. But in January 2007 I lost my part time job. As I'm still a student and my parents pay for my study costs I still needed clothes and stuff... So there went my savings... Now I sometimes make some money when I go babysitting, and I try to save the half of it. Until now it goes pretty good
It was actually an idea of my banker to save the half of what I earn. Maybe that's an idea to do after you have paid all your bills, to save the half of what's left...
I just recently, like last night, had a dilemma about this. I saved my school allowance for the semester, put it into my savings and told myself that I will never use it unless there's an emergency. but I had this something that I really really wanted to buy. I managed to stop myself from buying it earlier but last night I ended up buying it anyway. x__x I GAVE IN. XD I don't regret it though. I told myself it's a gift for my hard work, afterall, I indeed had a hard time.
thanks for this topic. I need advice on how to save money too.
That's great saving 25%, especially if you invest that money some way.
I generally try to have a emergency fund of money that I can get quickly if I had to pay something up front unexpectedly. The rest I used to have in bonds, but going to college got rid of those pretty quick...
Drawing up a budget is pretty simple, but sticking to one can be difficult. I think the trick to successfully staying on a budget when money is tight is to budget yourself a little "fun money." Personally, if I don't, I start to feel poor, deprived and resentful after a while. When that happens, I'm a lot more likely to just say to hell with it, indulge myself with something ridiculous, and end up in a pickle.
So I actually budget $15 every week specifically to spend on stuff that makes me feel good, even if it's just little things, like nail polish or drawing pencils. Last week I wanted a music cd that cost $17, but I couldn't afford it, so I got a paperback novel instead. I'll get my cd THIS week, because I have some "fun money" left over from last week. Sometimes I save it up for expensive things like going out clubbing, or cool shoes that I want but don't actually need. I think giving yourself a little cash to blow on silly things is essential for maintaining financial discipline the rest of the time.
(Here's another trick, if you're artistic/crafty -- I spend a good bit of my fun money on art supplies, yarn and beads. I enjoy drawing, crocheting, and making jewelry. The resulting pictures, hats, scarves, pocketbooks, bracelets, necklaces, etc. etc. not only keep me busy, but also become inexpensive but VERY MUCH appreciated handmade holiday and birthday gifts. I get three times the enjoyment! First - the fun of making stuff, second - giving it away and seeing the recipients awestruck by the fact that someone ACTUALLY MADE SOMETHING JUST FOR THEM, and lastly, the sheer satisfaction of giving nice gifts without breaking my budget.)
It also helps to have goals in mind when you're saving. At the moment, I have one long-term goal; since I already own a house, I'm investing so I'm not poor when I'm old and decrepit. I also have a short-term goal; an emergency fund so I don't have to dip into my long-term savings if I become unemployed, or if the refrigerator breaks down or something. After the emergency fund gets up to enough to live on for three months, I'm going to change my short-term goal to taking a nice vacation in Europe, because I've always wanted to see Greece and Rome. If something awful happens, and I have to use any of my emergency money, I intend to treat it like a loan, and revise my budget to include paying myself back.
So, bottom line:
1. Take care of necessities (rent/mortgage, utilities, transportation, food, medical care, tuition) first. If you can't afford the necessities, look for a way to make more money. Just so you know, cable tv, cellular phones and Starbucks coffee are NOT necessities.
2. Decide what your other priorities are (long- and short-term) and decide how much income to set aside for each one. Don't forget to include some fun money in your budget.
3. Revise your budget every time your income or priorities change.
This is just how I'm handling my own (pathetically small) finances, but hopefully this will give others some ideas on how to deal with their own.
I don't spend a lot of money because somehow I manage to enjoy / "reward" myself with little. It helps of course that I'm a retro gamer, so my desktop computer is composed of old hardware I got for free or bought second-hand. And the games are also cheap so basically you don't have to use a lot of money to have fun, just "want" the right things!
As a student I live in a relatively cheap apartment with one other student. Cooking together saves even more money. Admittedly I don't have a job, but I get an allowance from my parents and the government
Whatever is left I put into a savings account without knowing what I'll do with it. No doubt it will be useful someday for something. I think there's no need to feel guilty about that.
Saving that much is great!
Personally, I keep $1000 in checking at all times, and put anything above that into savings. (Which I have a nice 5% rate on) Since I'm naturally frugal, this works fine.
What will I finally spend it on? Besides saving it for a rainy day, I plan to have at least $200,000 saved up in 10 years, so that I can retire to Mexico and work on my inventions. (And perhaps have a nice little ranch; I do like horses, you know.)
Well, keep in mind that the things you may really, really want are a second priority. They'll likely be there after you've built up a good solid savings. Getting the balance between sorting out what is a need and what is a want can be hard...but you seem to be doing a great job as it is. So many times I notice my friends (and occasionally myself!) get them into a tight spot after spending money on something that they felt they "deserved" and then they forget about their cell phone bill that's due next week. You don't necessarily need to be saving up toward something, it's there for emergencies and just for when something that you must must must have rolls around. Perhaps your car will break down and will need some hefty repair work. Perhaps you'll need a plane ticket to go somewhere on a whim. Perhaps...that's what it's for. The perhaps and maybes and possibilities in life. My budget is pretty strict; I'm a student, and all the money I make goes into savings. Occasionally I spend it on superfluous things. I'm saving up for a nice DSLR camera and that'll take some time. Otherwise, it's for emergencies with myself/friends/pets. But I put it all in savings regardless. Good luck!
Money makes the world go round...
Mo' Money Mo' Problems...
voted for da 1st one.. but i also agree with the second one..
ive always been a saver myself....probably got it from my parents
Money is a single platform in which all services were forged together...
No Money.. there would be a lot of problem.. then,.. we have to invent money..
Money makes world go around. ha ha ha...
World goes around.. because of lots of science equation..
only one to say im saving my money to the bank.. incase of emergency..
My savings account is empty, thanks to some health issues. But I have to say, I'm glad the savings was there when we needed it, or we'd have declared bankrupcy by now!
We had to get creative in our family, because hubby and I have different attitudes about money. I always know the balance of my account to the last penny, and save a lot, but hubby well, doesn't.
So we automatically put a portion into our savings every paycheck. Another portion (calculated yearly from our expenses (utilities, taxes, insurance, rent/mortgage, etc) goes into a "bills" account, so our bills are always paid. A thirs account is for spending: Groceries, entertainment etc.
It's worked really well, because we're not always stressing about money. We don't have to keep track of every penny; it's really easy to maintain. But our bills are always paid, and we are saving (we have a long term savings, and an emergency savings) at least a little.
Don't know if it will help you, but it's done wonders for us!
It's always a good idea to save. Saving should be reward enough, though I know it's not. It's a good idea to have enough saved up to keep yourself totally sustained for at least 3 months in case something ever happens (loss of work, sickness, accident). You could get a goal to put X-amount away into a savings account, and then when you reach that goal, you can stop saving for a while and use the money you'd normally save to buy stuff. Of course, like likes to throw little monkey wrenches into your plans to mess them up. It never fails to happen to me!
Saving money is great, but besides necessities, what is there to spend your money on? I think it's okay to have fun spending money as long as you have enough money for what matters. Otherwise, you can save your extra money and blow it on something bigger in the future, either way money is money.
I think absoultely money makes world go round.
Ideally, many people would say there is something more valueable than money in our life.. but in real life, money is the most valueable thing.....
Well, I had read an interesting research few years ago,
There are two questions :
1. what makes you happy
2. what makes you unhappy.
Amazingly, money had ranked just no. 4 at 1st question. it means many people think money is not major factor for happy life...
But..... money had ranked no.1 at 2nd question. People think money could not make them happy but it could make them unhappy...