I am not a wealthy woman, but maintain an above average salary, but seem to always be living from pay check to pay check. I understand that I have to stop impulse buying etc... but is there a sound equation that I could apply to my budget and follow it? Any help would be appreciated.
2006-07-27 13:19:18 · 6 answers · asked by julianna76301 5 in Business & Finance ➔ Personal Finance
Become a Utilitarian and do the things that produce the most utility (ie pleasure, results) for you. I like to think that I can enjoy the one or two things that I like most and then do everything else frugally. Unless you make a lot of money, its not possible to have the best car, live in the biggest house, buy the expensive clothes and drink the finest wine. Decide what you like most and spend money doing it but just do less of everything else.
2006-07-28 13:09:14 · answer #1 · answered by ck-cfp 2 · 1⤊ 0⤋
The best advice I ever heard and the only one that sticks/that I can really use is this: pay yourself first. What you do is have automatic deposit, and you split it between 2 accounts. This works best if you have 2 separate banks and the one where the savings goes is a savings account, and you do not have a checking account at that bank - removes the temptation to transfer. Then you just have to budget and spend off of the new and lower amount. It is a little hard at first to adjust to the "pay cut" but you get used to it.
Another trick along these lines is, ANY unexpected money you get, a bonus or a raise, goes straight to savings. So when you get a raise, you change your direct deposit mix (see above) so the WHOLE RAISE goes into savings every pay.
The rest is simple (but not easy) - just leave it alone!
2006-07-27 13:48:59 · answer #2 · answered by kellyault20001 3 · 0⤊ 0⤋
Dave Ramsey (author of "Financial Peace" and "Your Total Money Makeover") has two budget forms on his website that you can print and fill in. I highly recommend his 13-week, "Financial Peace" course. It explains the basis for every entry on the budget forms.
His philosophy on budgeting is: if you don't tell your money where to go, it will just leave. We've finally gotten our spending under control (after years of blowing budgets and paying credit cards) and now have money in the bank and a solid handle on our finances.
Best wishes!
2006-07-27 14:08:07 · answer #3 · answered by homeschoolmom 5 · 0⤊ 0⤋
I never really thought about taking Oprah's advice. But our tv was on one day when she was on (we only have one channel, we don't watch tv much) and she was talking about her debt diet. So I looked it up on her website. And it stinkin' works! I think there's like 7 steps. And one of the steps shows you what your money should be going towards. Mine said that I should only use $24 worth of gas a week. Sometimes I fill my tank twice (which is $40 each) but I thought to give it a try anyways. So, being serious with myself (you seriously have to be willing and to want to do this), I only put in $24 for each week. And it has worked so far. So, I've saved tons of money! Definetly check into it though. There's a lot of good information, even if you aren't in debt.
Here's the link: http://www2.oprah.com/money/debtdiet/money_debtdiet_main.jhtml
2006-07-27 14:06:27 · answer #4 · answered by goshimwaycool 3 · 0⤊ 0⤋
There is a method, but it really depends on the individual and their financial situation. I am a Paralegal who deals with people's budgets all the time. Feel free to email me if you are looking for any specific budget help.
2006-07-27 13:23:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
if your goal is to save money, direct deposit the amount to a savings account and buy cds or bonds or into an ira so you can't take them out until months, years later.
after you pay yourself, then pay the bills, you know what will happen if you don't pay bills :)
if there's anything left, go shopping
2006-07-28 04:28:34 · answer #6 · answered by jean 4 · 0⤊ 0⤋