Money Management

[eef]

I thought I'd start a thread about managing your money- because I need all the advice I can get. I am a single guy, have a 15.50/hour full time job, plus freelance jobs- I live pretty comfortabley but my big problem is I just can't save money! I have vowed to buy a lap top and other stuff like that for a while now and I just can never keep from spending it- especially now that I've fallen in love with the leaf.

So I figuerd if anyone wanted share what lessons they have learned, what works for them, what kind of things to do to force yourself to save... I don't know- please, share your advice with guys like me.
-eef

[Uniputt]

I am going to closely watch this thread. I have never found the secret to money management.....although I hear it has something to do with buying low, selling high!!!

................Anxiously awaiting the enlightenment........!!!!

[Ms. Floydp]

I think it has to do with budgeting but I'm not sure!!

I'm with you guys! Gonna watch and see what enlightenment will come from this posting! I'm sure there's lots for me to learn as well!!

[eef]

maybe i asked the wrong people- we all spend hundreds, if not thousands of dollars a year on sticks made of rotten leaves that just burn into ash.
-eef

[Ms. Floydp]

Originally Posted by eef

maybe i asked the wrong people- we all spend hundreds, if not thousands of dollars a year on sticks made of rotten leaves that just burn into ash.
-eef

Good point!!! We all watch our money go up in smoke!!

[dadof3illinois]

Originally Posted by eef

I thought I'd start a thread about managing your money- because I need all the advice I can get. I am a single guy, have a 15.50/hour full time job, plus freelance jobs- I live pretty comfortabley but my big problem is I just can't save money! I have vowed to buy a lap top and other stuff like that for a while now and I just can never keep from spending it- especially now that I've fallen in love with the leaf.

So I figuerd if anyone wanted share what lessons they have learned, what works for them, what kind of things to do to force yourself to save... I don't know- please, share your advice with guys like me.
-eef

Just put yourself on a budget. We put our whole house on one about 2 years ago and after learning the ropes the first couple months it really has started to payoff. For the first time we will be debt free (except for a house note) in 8 more months. I know that sounds like a long time but one your use to doing it it's easy. Try it for a couple months and see how it works.

[floydp]

Originally Posted by Ms. Floydp

Good point!!! We all watch our money go up in smoke!!

and craft junk,grandkids,step kids etc,etc.etc.. and

[Jeff]

Better to smoke it and taste it... There are many more frivolous ways to spend money than on cigars.

[miketafc]

Originally Posted by eef

I thought I'd start a thread about managing your money- because I need all the advice I can get. I am a single guy, have a 15.50/hour full time job, plus freelance jobs- I live pretty comfortabley but my big problem is I just can't save money! I have vowed to buy a lap top and other stuff like that for a while now and I just can never keep from spending it- especially now that I've fallen in love with the leaf.

So I figuerd if anyone wanted share what lessons they have learned, what works for them, what kind of things to do to force yourself to save... I don't know- please, share your advice with guys like me.
-eef

Eef Unfortunately there is only one solution to this problem. So sit down have a drink, have two drinks, light up a cigar and face the situation.

The only solution is MARRRIGE as ugly as it sounds. Yes, she will make sure you don't spend it and in most cases even see it any more.

In the meen time mayby you can save enough cigar band to trade in for that computer.

[Redman]

Dad- it sounds if you may be a Dave Ramsey follower. eef you might want to pick up the book Total Money Makeover by Dave Ramsey. I don't agree with everything he says but I do agree wiht a good bit of it. the biggest thing he stresses is a good budget.

[Nely]

Wow I disagree. DO NOT get married if you can't manage your money. Here is my story:
I was earning a pretty good salary right out of high school in the food industry. I got quite good at it and the job offers were plenty. I took an offer that nearly doubled my salary but had to work nights and sometimes days. I was leaving with my parents so all the money went to a new car and a lot partying. Until I had a huge accident coming back from work. I had no car for almost 3 months, I lost my job, I had no money in the bank. Guess what? My father had to stick some money in my wallet after seeing it empty for two weeks, my girlfriend(current wife) had to pay for the movies, and my friends all disappeared from my life. It was hard to find another job since my employer bad-mouthed me behind my back. I finally took a job at a different field earning 8.50 an hour. But I had learned my lesson. I was going to start saving money and decided to go back to school and do something with my life. It was hard to beat the old spending habit but I did it after carefully managing all my income, and writing down my expenses, even the little things like buying lunch was adding up to a lot every month. So I took control. I ate left overs from yesterdays dinner for lunch. Budgeting is the key bro. Never spend more money then what you actually have. I finally went through radiology school, graduated, started working, and within a year I bought my first property and got married. Trust me, being married really does mean control, but you got to have it before you say "I do". My wife was a disaster. So it was me who had to teach her BEFORE we got married how to save. If not we wouln't have made it this far and have the things we have now. About your new found love for the leaf, don't worry,my hobbies are expensive hobbies too, I'm into guns, birds, and now cigars. But moderation will keep you afloat.
Start by budgeting and writing down your income, subtract from that your basic expenses such as rent or mortgage, car payment, insurance, light bill, phone bill, ect. You know, the ones you can't get away from every month and if you don't pay them you are in trouble. After you do that you will be left with what I call "free money" or spendable money. Give yourself an allowance for every week's personal expenses, include in there your outings to the movies, dining-out, cigars what ever. Then subtract that from your "free money". You shoul be able to have some money left over that you could just stick it in your savings. If not cut back on your personal expenses.
That was long i know...but i hope it helps.

[dadof3illinois]

Originally Posted by Redman

Dad- it sounds if you may be a Dave Ramsey follower. eef you might want to pick up the book Total Money Makeover by Dave Ramsey. I don't agree with everything he says but I do agree wiht a good bit of it. the biggest thing he stresses is a good budget.

No, not at all. This was something we knew we had to do if we wanted to save some cash for vacations, Christmas, hobby's things we both wanted. Once you get started it's really not hard at all.

[slowhand]

It is rather simple actually.

You need to PAY YOURSELF FIRST every payday. Act like your savings is a bill and resolve to pay it first.

You should be able to take 3 to 5% (and even more if you really try) every payday and put it away no matter how tight your budget is. After a couple of times, you will no longer even miss it. Once paid, you need to act like the money is gone just as if you had paid the light bill.

So if you set a goal, such as buying a laptop that cost $1500, you can plan it out very nicely. 'Pay yourself' a $100 every payday and put it away.

It is amazing how fast your money will build up.

[AAlmeter]

Originally Posted by slowhand

It is rather simple actually.

You need to PAY YOURSELF FIRST every payday. Act like your savings is a bill and resolve to pay it first.

You should be able to take 3 to 5% (and even more if you really try) every payday and put it away no matter how tight your budget is. After a couple of times, you will no longer even miss it. Once paid, you need to act like the money is gone just as if you had paid the light bill.

So if you set a goal, such as buying a laptop that cost $1500, you can plan it out very nicely. 'Pay yourself' a $100 every payday and put it away.

It is amazing how fast your money will build up.

Yup. Get rid of a chunk of change every payday, into a savings account. Build that up to $1000...and pop it into a CD. Then you cant touch it. All the while rebuild that savings account to another $1k. Repeat process with that $1k and when the first one matures, begin looking into market investments. The trick is not to deny yourself money or things you want, but to make it a game/challenge. Learn some investing basics, and you will be hooked. I would avoid "daytrading" since this is not necessarily disposable income. Research some mutual finds, and throw some money into it. You will eventually enjoy the market and watching your money grow.

Me? Dont do any of that. Used to be big into investing as a kid. Then college came and took my money away. Now my only form of investment is blackjack....which I insist is more profitable than day trading.

[Da Klugs]

EEF saving money is the easiest thing in the world to do. Choosing to get started making the spending adjustments to finance the savings, and choosing the "best way" for you is the toughest.

Here's my suggestions:

1. If your company has a 401k plan you should contribute. There are lots of reasons but the simple ones are, you defer paying taxes on this money so in effect the government is contributing 15-20% of the dollars you save in this manner. If your company matches any form of this you should at least contribute enough to get their match. If you are not covered by a 401k or pension plan then put the $ in a self managed IRA the same tax benefits apply.

2. The problem with 401k's and IRA's is that you incur big penalties to withdraw funds before 59 1`/2 except in special circumstances (Like buying a house). And they are not a save for a purpose vehicle... like buying that first box of ISOMS because they are meant as a retirement vehicle. Trust me EEF you too will someday retire and will have a much greater appreciation then of compound interest and capital gains. The best advice I can give you is to have some money taken out of your check as a deduction. If you never get it you can't spend it. Try $ 50 a check. Thats $ 1300 a year if you get paid bi-weekly. You can make it more as you get comfortable. Any brokerage firm and some of the online guys can set this up with your employer so that it happens automatically.

It's the habit of saving that is important not so much the initial amounts. So get in the habit. It's the best one you can ever have.

Saving money gives you freedom from servitutude to the man.

Good Luck!