Monthly Budget 4,000??

street

New Member
Expenses for a month will run us 3500$. We live very simple and have a few more things then what we need in life but we can at this time. Won't owe anyone anything and I work about one month a year for my gas money. LBYM is key.
 

mathjak107

Senior Member
saving ratio is key not just leave below your means .

lbym is a meaningless expression . our means varies ... we don't just pick up and move because one years income is different or expenses vary ..one can certainly live below what their income is but by how much is acceptable ?

i mean we can live in manhattan for the same monthly budget which is below what we take in , only living in manhattan leaves little slack to cut back if need be or even for saving .

so while lbym sounds great it really is meaningless and not actionable .

what it really boils down to is savings rate . it is the amount saved that provides the slack in rough moments .

the irony is there is loads of information on investing but very very little on spending .

one popular plan is to spend 50% on essential expenses , 15% on retirement savings , 5% for short term savings and 30% for discretionary spending .

see how that is far more meaningful then some silly catch phrase ?

there are a few spending plans that are actionable but we rarely learn of them .. all you hear is lbym which is a great saying but what i do with it ?
 

treeguy64

Hari Om, y'all!
Location
Austin, TX.
Lots of goofy stuff, here, as I see it. Hell yes, you should definitely write out a budget, and see exactly how you're spending your money in each category. How else will you know when to cut back on a specific category of spending?

I've written budgets my whole life, and I don't believe I would have ever moved into the very comfortable life I now live without having done so.

The poster who advises not to worry about what you're spending on specific categories is wayyyyyy off base, in my book, and I'd say you follow his advice at your own peril!

In the end, don't spend more than you are taking in, or have available to you in savings. Know where your money is going, so you know where and when to cut back on spending.

Live AT your means!
 

oldman

Well-known Member
Location
PA
My wife and I both inherited large sums from our trusts. My grandfather started the family’s wealth. My wife’s great grandfather started her family’s wealth. And, we both receive above average monthly pensions. Even so, we use a yearly budget and it is divided into “per month” numbers. Actually, we use the program “Quicken.”

We have also taught our two children to use a budget. Budgeting for our family is not used to restrict the use of cash flow, but does limit and keeps one’s finances in check, or at least for us it does. It’s also used as a good reference point to compare expenses from one year to another. Like, I can look at my electric bill for November, 2018 and it will show me that I spent $126.00 on that account. In 2019, the amount was $89.00. Why the difference? It was partly due to not running the dehumidifier that month and that we were away for a week.

My wife buys a new car every two years. This item is never included in our budgets. The money to buy her cars comes from a separate account that we have set up that is used for extra-ordinary expenses. In other words, as she puts it, it’s our slush fund.
 
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Don M.

Well-known Member
Location
central Missouri
Budgeting and managing finances wisely is of great importance to Everyone....working, retired, whatever. If people run up needless debt, that will eventually come back to bite them. In today's world, where "defined pensions" are becoming a thing of the past, and Social Security is coming under increasing pressure, a wise person will realize that they too will eventually need to retire, and begin saving/investing at a fairly early age, so they don't become a welfare recipient when they reach their "Golden years".
 

Packerjohn

Packerjohn
Location
Canada
Seems a no brainer
Live within yer means

Mantra? pssssht
More like Credo

We don’t touch $1000/mo
Don’t even know what I’d do with it
I may buy gold, if anything

Been that way for pushing four years now
Heh, most folks here would think I live in extreme poverty

Well to do, for me, is having 14 cord of would stacked up for the next two winters


and living each moment in the comfort, joy and satisfaction of hard work...with my hands, gives us

No, I don't think you live in poverty at all. I think that you are richer than almost anyone in the city. The trouble is most people don't understand what the quality of life is. They think about money, money & more money but it's really about time to relax, think, have a drink & shooting the breeze with someone you like. I know cause I used to own a cottage beside the lake & had many great years there. Hack, having a 2,500 square home, TVs in every room, 3 car garage, etc. is not quality of life. It's slavery, North American style. You think you own things but those things really own you. On your death bed, you'll be sorry that you learned this too late.
 

Knight

Senior Member
What would be a good investment to get into? Anyone know?
What is your tolerance for risk? That and your age & expectations. With that maybe mathjak would give you some options he is probably the finance guru for this thread.
 

Aunt Bea

SF VIP
Location
Near Mount Pilot
What would be a good investment to get into? Anyone know?
Do you have a savings/investment plan through your employer?

For me, payroll deduction was the most painless way for me to start saving and investing. Start out with a small percentage of your pay and every time you get a pay increase bump up the savings portion by a little.

I would start with plain old savings until you build up an emergency cushion. Then look to see if they offer a no-load balanced mutual fund that handles the investment allocation between stocks and bonds for you.

https://www.investopedia.com/terms/b/balancedfund.asp#:~:text=Balanced funds are mutual funds,both income and capital appreciation.

Good luck!
 

MarciKS

Senior Fruitcake
Location
my apartment
Do you have a savings/investment plan through your employer?

For me, payroll deduction was the most painless way for me to start saving and investing. Start out with a small percentage of your pay and every time you get a pay increase bump up the savings portion by a little.

I would start with plain old savings until you build up an emergency cushion. Then look to see if they offer a no-load balanced mutual fund that handles the investment allocation between stocks and bonds for you.

https://www.investopedia.com/terms/b/balancedfund.asp#:~:text=Balanced funds are mutual funds,both income and capital appreciation.

Good luck!
I wouldn't even know who to talk to about getting a mutual fund. This is bad. LOL
 
I wouldn't even know who to talk to about getting a mutual fund. This is bad. LOL
If you think you'll need the money within the next year, keep it in a money market fund.

If not, open an account at a place like TD Ameritrade (they have nice representatives who can help you) and buy some SPDR shares. That is an exchange traded fund (ETF) that mirrors the performance of the S&P 500 stock index.

Do you have a 401k plan? Do you have any debts? Do you own your own home? These are things to invest in first.
 

old medic

Member
Location
Western NC
Marci, Im in the same boat i guess.... I have to move my 401K someplace once I retire, even if I go back part time.
I can roll it into my retirement, but figure its best to keep it as a separate cash fund instead of a few hundred extra a month.
If you learn to live on nothing then a little seems rich.....
 

MarciKS

Senior Fruitcake
Location
my apartment
Marci, Im in the same boat i guess.... I have to move my 401K someplace once I retire, even if I go back part time.
I can roll it into my retirement, but figure its best to keep it as a separate cash fund instead of a few hundred extra a month.
If you learn to live on nothing then a little seems rich.....
I live in next to nothing anyway so I'm used to it. LOL
 

Aunt Bea

SF VIP
Location
Near Mount Pilot
Yes but what do I do with it when I retire? I don't know where to roll it over to that's good.
Worry about that when the time comes, everything is likely to be different by the time you retire.

The important thing is to sign up for the 401K now and try to at least contribute the amount that your employer is willing to match. Then gradually increase your contribution to the maximum.
 

Camper6

Well-known Member
I've head the term "live below your means" all my life.

On one level it means spending less money than you take in.

On another level it means your lifestyle should be below your ability to pay for it.

At first glance, those two definitions might seem to say the same thing, but they don't.

There is a difference between "spending money" and "lifestyle." Like a friend of mine, some people who have "champagne taste on a beer budget"... live the champagne lifestyle when they get paid... then are forced to live without either champagne or beer once that money runs out... until they get paid again... then the vicious cycle repeats. Needless to say, they are not savers. They try to continue their champagne lifestyle as long as possible by getting into more and more debt until they become bankrupt.
But then again, there's no guarantee on how long you are going to live so who am I to pass judgement on those who want to have fun and enjoyment while they are fit and able?
 

Camper6

Well-known Member
I went to the bank to discuss with my financial planner. She asked me what do I think the most important thing is for a successful retirement? I said "living". She quit her job and retired the next week. I have seen so many of my friends scrimp and save for retirement and never made it. One particularly. On the day of his retirement, out for coffee and killed by a car. Financial security however is a great comfort. I'm heading for 90. I retired late .If I had to do it over I would retire early, even with less money. You can't accumulate time.
 

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