Let's talk money. Budgets. Life.

[sasquatch]

Also, shop for the best rates you can get for your savings account.

Some currently are offering in the 4% range. Take advantage of that.

Also, I like cash back credit cards. If you can be responsible enough in managing money to not pay interest on them, 2% on every purchase adds up.

We must not only look for ways to spend less, but also look for little simple ways to generate more


Sent from my iPhone using Tapatalk Pro

 

[PNW bow hunter]

Well Fellas...I did a little deep diving today, and crunched the numbers. Since Oct 1st until Yesterday my family had spent $148 in fast food, FAST FOOD. Talk about eye opening, no more! It’s the first step, but dam what an eye opener.

i would highly suggest getting one of the budgeting apps that you link to your bank account. You will be forced to track and categorize EVERYTHING.

Do not categorize groceries to make your own food with eating out, coffee from Starbucks, or snacks at the minute mart ect. Groceries are the food you purchase to make your own meals/snacks when I am doing my budget.

This will really illustrate how much spending can be eliminated, without changing your lifestyle that much.

My lunches are pretty much always well under $5 per day. Breakfast is $2 or less. Dinner is in the $5 or less range.

I have helped several people successfully with budgeting money/finances. I have also attempted to help others that see the problems but continue to behave/spend the same way, then continue to complain about being broke all the time.

The biggest ways to cut spending every time I have looked at anyone’s budgets including my wife and I over lots of years is always the food/snack/coffee category, and the payments made for financed items or credit cards.

Meal prepping & planning ahead really
helps with spending less on the food. No need for fast food if you already planned your meals out for 2-3 days.

 

[Dos Perros]

Dual income household with two active kids. We own a home (mortgage) and three old, paid off and (mostly) reliable vehicles. No other debts.

We fund retirement first and that is our main savings vehicle. So, 401k's are funded from paychecks before the balance hits the bank account. We are fortunate to be able to max out both my and her 401k contribution, and HSA as well. Coupled with employer contributions this should be sufficient for us to retire comfortably young enough to actually enjoy it. We could probably achieve some tax efficiencies utilizing a Roth IRA at the cost of 401k, but I don't think that's really the nature of the OP's question.

We both get annual bonuses and those go into savings...we use these as buffers to cover spikes in monthly spending and funds for larger purchases, projects, vacations.

Then, we live off of whatever is leftover, and adjust our spending to that. If the money left over at the end of the month is too little, we get tight. If our accounts are growing, we try to efficiently enjoy it. I find myself more willing to spend on experiences and memories more than stuff...I am hating stuff more and more every day.

Happy to answer any specific questions you all may have. I will say that I do look around and see others living extravagantly and I wonder how they are doing it. I try to tell myself there are two reasons for this. 1) I am seeing the collective fun of my Facebook feed, the family vacations, the big noteworthy things, etc. We share those too, so it's likely it just seems like the rest of the world is having fun all the time, and reality is of course one of my friends is having fun at any given time. 2) People aren't saving for retirements at rates they should; they think as they age they'll make more money and save then. I suspect they'll be working later in life while we are playing.

Please remember that comparison is the thief of happiness. Focus on yourself and your family and you'll be fine.

 

[PNW bow hunter]

Then, we live off of whatever is leftover, and adjust our spending to that. If the money left over at the end of the month is too little, we get tight. If our accounts are growing, we try to efficiently enjoy it. I find myself more willing to spend on experiences and memories more than stuff...I am hating stuff more and more every day.

Great point on “stuff”. I swear a huge amount people spend a ton of free time on social media that is full of ads for “ stuff”to buy.

I haven’t helped someone revamp their budget for a couple years, pre Covid. People shopping habits have definitely changed since then.

Online shopping for “stuff” is probably a huge budget killer for most families.



Great post

 

[MattB]

Dual income household with two active kids. We own a home (mortgage) and three old, paid off and (mostly) reliable vehicles. No other debts.

We fund retirement first and that is our main savings vehicle. So, 401k's are funded from paychecks before the balance hits the bank account. We are fortunate to be able to max out both my and her 401k contribution, and HSA as well. Coupled with employer contributions this should be sufficient for us to retire comfortably young enough to actually enjoy it. We could probably achieve some tax efficiencies utilizing a Roth IRA at the cost of 401k, but I don't think that's really the nature of the OP's question.

We both get annual bonuses and those go into savings...we use these as buffers to cover spikes in monthly spending and funds for larger purchases, projects, vacations.

Then, we live off of whatever is leftover, and adjust our spending to that. If the money left over at the end of the month is too little, we get tight. If our accounts are growing, we try to efficiently enjoy it. I find myself more willing to spend on experiences and memories more than stuff...I am hating stuff more and more every day.

Happy to answer any specific questions you all may have. I will say that I do look around and see others living extravagantly and I wonder how they are doing it. I try to tell myself there are two reasons for this. 1) I am seeing the collective fun of my Facebook feed, the family vacations, the big noteworthy things, etc. We share those too, so it's likely it just seems like the rest of the world is having fun all the time, and reality is of course one of my friends is having fun at any given time. 2) People aren't saving for retirements at rates they should; they think as they age they'll make more money and save then. I suspect they'll be working later in life while we are playing.

Please remember that comparison is the thief of happiness. Focus on yourself and your family and you'll be fine.

There is a sub-set of people (and it seems it may be a larger sub-set than I can even imagine) who is assuming their retirement will be funded by a combination of social security and meager savings. The median net worth of Americans is less than $150K and the median net worth of those 75+ is not even double that amount.

 

[woods89]

Great point on “stuff”. I swear a huge amount people spend a ton of free time on social media that is full of ads for “ stuff”to buy.

I haven’t helped someone revamp their budget for a couple years, pre Covid. People shopping habits have definitely changed since then.

Online shopping for “stuff” is probably a huge budget killer for most families.



Great post

And it's not just the ads, when people have an active social media life they are constantly seeing others post about new toys or adventures. The sum of this seems greater than the parts, for some reason. An example might be that if you have some friends with campers, some with jeeps, some with boats, you don't feel like you've arrived just having one of those. It creates pressures that are false, but make banks a ton money on interest.

It makes a great argument for paring down social media use, for sure.

 

[Dos Perros]

There is a sub-set of people (and it seems it may be a larger sub-set than I can even imagine) who is assuming their retirement will be funded by a combination of social security and meager savings. The median net worth of Americans is less than $150K and the median net worth of those 75+ is not even double that amount.

I agree, kinda. I actually think a lot of them aren't even thinking about it. They'll "do it later."

I also think for some the problem is so big and unsolvable it causes them stress and they purposely avoid the topic altogether, as like an emotional defense mechanism.

My wife once audited her small/mid size companies 401k contributions. It was shocking how many contribute zero, missing out on the match, and then how few contribute more than 10% of their salary. Even executives making multiple 6 figures doing nothing or very little.

Anyway, my advice for anyone finding themselves in this predicament is not to try to eat the elephant in one bite. Take one little step, and then later another, and then another. It'll all add up eventually.

 

[TxxAgg]

Dual income household with two active kids. We own a home (mortgage) and three old, paid off and (mostly) reliable vehicles. No other debts.

We fund retirement first and that is our main savings vehicle. So, 401k's are funded from paychecks before the balance hits the bank account. We are fortunate to be able to max out both my and her 401k contribution, and HSA as well. Coupled with employer contributions this should be sufficient for us to retire comfortably young enough to actually enjoy it. We could probably achieve some tax efficiencies utilizing a Roth IRA at the cost of 401k, but I don't think that's really the nature of the OP's question.

We both get annual bonuses and those go into savings...we use these as buffers to cover spikes in monthly spending and funds for larger purchases, projects, vacations.

Then, we live off of whatever is leftover, and adjust our spending to that. If the money left over at the end of the month is too little, we get tight. If our accounts are growing, we try to efficiently enjoy it. I find myself more willing to spend on experiences and memories more than stuff...I am hating stuff more and more every day.

Happy to answer any specific questions you all may have. I will say that I do look around and see others living extravagantly and I wonder how they are doing it. I try to tell myself there are two reasons for this. 1) I am seeing the collective fun of my Facebook feed, the family vacations, the big noteworthy things, etc. We share those too, so it's likely it just seems like the rest of the world is having fun all the time, and reality is of course one of my friends is having fun at any given time. 2) People aren't saving for retirements at rates they should; they think as they age they'll make more money and save then. I suspect they'll be working later in life while we are playing.

Please remember that comparison is the thief of happiness. Focus on yourself and your family and you'll be fine.

We live like you and I agree with everythibg you said. I'd also add a 3 and a 4.

3) some people make a lot of money. More power to them.

4) some people get money from their parents. I was blind to this but have an uncle who is a doctor. He shot me straight with how he and many of his colleagues help their children afford larger homes, nice vacations, and college tuition for grandkids.

 

[Marshfly]

A lot of what I see posted here is cutting, budgeting, living on less. If you are happy with your current level of living then keep it. Life is short.
But. BIG BUT. You have to earn more. Everyone, EVERYONE. Needs a side gig and second source of income. It is WAY easier to make more money than cut to the bone to save. Youtube and the internet is full of easy ways and ideas to start a side business or earn money on the side. You get wealthy by exponentially increasing your income, not by aggressive budgeting and cutting.

 

[Dos Perros]

We live like you and I agree with everythibg you said. I'd also add a 3 and a 4.

3) some people make a lot of money. More power to them.

4) some people get money from their parents. I was blind to this but have an uncle who is a doctor. He shot me straight with how he and many of his colleagues help their children afford larger homes, nice vacations, and college tuition for grandkids.

My good buddy always says "I wish my parents had done better for themselves so I didn't have to work this f***ing job." Me too bud!

 

[MattB]

I agree, kinda. I actually think a lot of them aren't even thinking about it. They'll "do it later."

I also think for some the problem is so big and unsolvable it causes them stress and they purposely avoid the topic altogether, as like an emotional defense mechanism.

My wife once audited her small/mid size companies 401k contributions. It was shocking how many contribute zero, missing out on the match, and then how few contribute more than 10% of their salary. Even executives making multiple 6 figures doing nothing or very little.

Anyway, my advice for anyone finding themselves in this predicament is not to try to eat the elephant in one bite. Take one little step, and then later another, and then another. It'll all add up eventually.

Agree 100%. Start investing in a 401K as early as possible in one’s career, at a minimum contribute enough to fully earn matching funds, and grow your contributions as your income allows (use any raises to contribute until you reach the maximum).

 

[Kurts86]

I think in your 30’s you really should be focused on maximizing earning especially considering the current pace of inflation. If you stay in one position and often one company you will lose out on earning potential. That’s the advantage you have being young versus someone retired on a fixed amount.

Your 30’s are a point where you should be becoming a valuable mid career employee and advancement/management opportunities are much more available. You hit the point where you can be desirable enough to negotiate your salary and benefits instead of just taking what you are offered when you are fresh out of school. A lot of this is tied into making yourself valuable in the previous years but your 30’s are when you get paid for the work you did between 18-29 to get to that point. It’s absolutely possible to double your household income in your 30’s.

Having kids today is expensive and the cost of things is silly. The trade off is that the job market is still very tight post Covid and everyone can realize higher incomes if they look around, try new things and do things that make you a little nervous.

 

[Blacktocomm]

I think the hardest part of making a budget and living to it is recognizing the emotions attached to the spend of money in different areas. And in my opinion setting and living by a budget is almost as much emotional discipline as it is financial discipline.

It is hard to stick to a fast food budget when you had a shit day at work and drive past your favorite fast food spot on the way home. Or you know it will be a rough day at work and that Cinnabon is calling your name on the way in to work.

But once you can identify the driving emotions behind the spend (or for people with a scarcity mindset the emotions tied to saving money) it is easier to set and live by a budget.

All that to say when we set our budget we had to have a lot of conversations about why I like to spend money on hobbies and why my wife wants to save it all, or only spend on travel. It took a long while balancing the budget to get where we are and we still go over it maybe 2 or 3 times a year to make sure our needs/wants are met with spend.

If you do the breakdown by savings/needs/wants we do 50% savings, 35% needs, and 15% wants - but I am ready to true down savings a bit and increase wants now that we have a kid and we have made it to points in careers where we want to "live a little" bit more.

 

[northernalpine]

1. Cook at home
2. Pay off cars early
3. Do your own maintenance
4. Buy quality tools and equipment
5. Stay away from items with depreciating value
6. Don’t put savings in your normal bank, hold long term money in high yield savings accounts

 

[Dos Perros]

1. Cook at home
2. Pay off cars early
3. Do your own maintenance
4. Buy quality tools and equipment
5. Stay away from items with depreciating value
6. Don’t put savings in your normal bank, hold long term money in high yield savings accounts

Cooking at home will also have health benefits.

 

[northernalpine]

Cooking at home will also have health benefits.

When I cook, yes. My wife cooks like Paula Dean, her three main ingredients are butter, sugar, and heavy cream

 

[awildswanger]

i would highly suggest getting one of the budgeting apps that you link to your bank account. You will be forced to track and categorize EVERYTHING.

Do not categorize groceries to make your own food with eating out, coffee from Starbucks, or snacks at the minute mart ect. Groceries are the food you purchase to make your own meals/snacks when I am doing my budget.

This will really illustrate how much spending can be eliminated, without changing your lifestyle that much.

My lunches are pretty much always well under $5 per day. Breakfast is $2 or less. Dinner is in the $5 or less range.

I have helped several people successfully with budgeting money/finances. I have also attempted to help others that see the problems but continue to behave/spend the same way, then continue to complain about being broke all the time.

The biggest ways to cut spending every time I have looked at anyone’s budgets including my wife and I over lots of years is always the food/snack/coffee category, and the payments made for financed items or credit cards.

Meal prepping & planning ahead really
helps with spending less on the food. No need for fast food if you already planned your meals out for 2-3 days.

Would you do a breakdown of a day of your diet? Would love to learn more

 

[DangerRanger]

Yeah inflation has really hit my budget hard. My wages are not keeping up, luckily I have a nice home for a low mortgage, and a cpa wife that has made sure we have more than adequate emergency funds. It’s hit the fun money, frivolous entertainment and grocery budget hard though.

 

[PNW bow hunter]

Would you do a breakdown of a day of your diet? Would love to learn more

Common breakfast:

Oatmeal with some milk and fruit

2 eggs & 2 pieces of Turkey suasage

Breakfast burrito made with some fried potatoes, 2 eggs, 2 turkey sausage


Common lunch:

Cup of white or brown rice, 4oz chicken breast or thighs, and some broccoli

Salad with 4 oz of chicken or elk/deer steak steak
My wife and I eat a lot of the salad kits you see at the store. Lots of different variations. We split the kit, they are $3.5-$4

If you have a Costco, it’s really hard to beat buying the huge rotisserie chicken. As soon as I get it home I break it all down with a pair of rubber gloves. All the white meat goes in one container, dark in the other. The one Costco chicken is more that enuff meat for each of us to have chicken salads or chicken/rice/veggies for a week. Whatever we don’t eat that week I vaccumn seal and freeze in 8oz packages for us to thaw and split for lunches in the future

I also usually babe some baby carrots, cherry tomatoes, and half an apple for snacks during the day


Common dinners:

Elk/deer/Bear spaghetti- cost $12-$14 to make at least 10 servings( plenty of left overs for lunches and future dinners
Loaf of garlic bread $3.99(enuff for 2
Lots of times I vacuum seal and freez half the pot of sauce for future dinner/linches

Elk/deer/bear stew $12-$14 for an 8qt crockpot 8-10 servings easy lots of left overs. Vacuum seal half for future dinne/lunches

Elk/deer/bear chilli just made a 8qt crockpot for $12 lots of left overs for lunches and also usually vacuum seal and freeze half

Chicken breast, or thighs, or elk steak, or Atlantic salmo with corn on the cob, baked potatoe, or sweet potato, and broccoli

Same meat above with rice or veggies


Last week whole chickens were on sale cooked it on the Weber with wood chips, shredded all the meat, and that went with salads and rice for lunches for the week. For me and my wife The whole chicken was less than $5

 

[PNW bow hunter]

Would you do a breakdown of a day of your diet? Would love to learn more

I forgot another favorite budget friendly meal we do a lot

Kaluah Pork with cabbage over rice. Sometimes I get some Mac salad as well Extremely good, and super cheap per serving

I got a huge 12lb pork butt on sale last week for $18

Cooked that in a Dutch oven with rock salt & liquid smoke.

Cooked a whole chopped up head of cabbage in butter and a little chicken broth.

Steam a big pot of rice.

Into the whole thing with Mac salad under $25

That easily made close to 20 meals, maybe more.