phcitywarrior

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I'll start with a few that should be common knowledge.

1. Set a monthly budget for everything you plan on doing with your money. Look at budgeting as what you plan on telling your money to do (save, invest, spend on shoes, donate etc). Try to do this monthly because the financial demands differ from month to month

2. In 2019, there is no reason why you shouldn't have at least 2 bank accounts (at different banks at that). The reason some people struggle to save is they have no savings mechanism. I advocate getting an online savings account with Ally. Have a portion of your paycheck deposited directly to your savings account. Then the rest to you checking account(s). Out of sight, out of mind.

3. Pay yourself before you pay your bills. Something is better than nothing.
 
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Obreh Winfrey

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If you really want to see where your money is going, those apps like Mint aren't granular enough. What you need to do is create an excel spreadsheet and record each and every thing you spend money on. Save every receipt and when you get home record each line item, the quantity, and the price. Categorize things appropriately. Do this for a few months and you'll get a very good picture of your expenses.

I manage my money by depositing my entire check into my high yield savings account. Depending on where I am in the pay period (I get paid biweekly) determines how I use it. Check on the first I automatically subtract 10% gross monthly from the amount and use that as my disposable income. From there I subtract student loans since I pay directly out of there. Then I calculate my utilities and non-rent bills, food budget, and a few bucks of free spending cash and transfer out that amount to my checking. My check on the 15th goes only to rent. I touch the remainder of the if and only if my checking goes dry due to unforseen expenses, but if I did my earlier calculation right, this won't happen. I've been able to save over 10% this way and not miss that money.

I do my grocery shopping for the entire month in one go. This eats up 100-150 of my budget but I usually have some stuff left over when I go again the next month. I try to minimize eating out too 2-3 times per week max, but obviously not eating out at all is preferable.
 

Silkk

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I'll start with a few that should be common knowledge.

1. Set a monthly budget for everything you plan on doing with your money. Look at budgeting as what you plan on telling your money to do (save, invest, spend on shoes, donate etc). Try to do this monthly because the financial demands differ from month to month

2. In 2019, there is no reason why you should have at least 2 bank accounts (at different banks at that). The reason some people struggle to save is they have no savings mechanism. I advocate getting an online savings account with Ally. Have a portion of your paycheck deposited directly to your savings account. Then the rest to you checking account(s). Out of sight, out of mind.

3. Pay yourself before you pay your bills. Something is better than nothing.
Dope thread, gotta disagree on #2

When I was like 19-20 I had only one debit card and was out to eat at Hooters one night. Couldn't pay my bill because Capital One put a fraud block on my shyt :snoop:

Always kept at least 2 checking accounts/debit cards ever since
 

phcitywarrior

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Dope thread, gotta disagree on #2

When I was like 19-20 I had only one debit card and was out to eat at Hooters one night. Couldn't pay my bill because Capital One put a fraud block on my shyt :snoop:

Always kept at least 2 checking accounts/debit cards ever since

You're right, there was a typo on my post.

I meant to say there is no reason you shouldn't have at least 2 different accounts. I have 3 accounts at 3 different banks. 2 checking accounts and 1 online savings account. The online savings is my rainy day fund, the main checking is for day to day expenses and the 2nd checking account is like "short term" savings account larger purchases, essentially to keep it out of my regular spending account.
 

phcitywarrior

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Sounds pretty simple, but expound on that breh:jbhmm:

My understanding of the zero-balance budget (ZBB) is allocating every single dollar you get within a specific budget period and ensuring that your income - expenses = $0 at the end of the budget.

Example: Let's say you start your monthly budget and after savings, debt payments, living expenses and discretionary spending you're left with $400, the ZBB model says you must still account for that $400 as a line item for expenses. You can allocate that money to "random expenses/misc spending" or you can reallocate that money to other categories in your budget.

It's just a very microscopic view of allocating your spending.
 

Silkk

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My understanding of the zero-balance budget (ZBB) is allocating every single dollar you get within a specific budget period and ensuring that your income - expenses = $0 at the end of the budget.

Example: Let's say you start your monthly budget and after savings, debt payments, living expenses and discretionary spending you're left with $400, the ZBB model says you must still account for that $400 as a line item for expenses. You can allocate that money to "random expenses/misc spending" or you can reallocate that money to other categories in your budget.

It's just a very microscopic view of allocating your spending.
Gotcha, Keep track of all my stuff through Mint & Personal Capital. Honestly don't know how I would remember all of my bills without them.
 

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Dope thread. Been seeing this topic a lot lately. Guess cuz it’s Financial Literacy Month. I’m ready to buckle back down on my finances.

I’m in a good spot. But I need a budget and stick to it. I look back on some of the bread I spent on dumb shyt and it’s ridiculous.

My current method:
After 401k/HSA/ESPP. I deposit most my check into my online savings account. A couple hundred to my credit union where I keep about a rack. My car financed thru them. Favorable rate but I still should pay it off. Also pay my energy bill thru the Credit Union Bill Pay cuz my provider charges a fee for credit cards.

I pay my rent thru the checking account linked to my online savings account. Every other thing I buy is purchased on a credit card for rewards. Which I pay off every month thru the credit union. My insurance policies are also paid at once On a credit card To save those few dollars lol.

I don’t eat out at work unless it’s a group outing. Or I forget my lunch/get lazy. Maybe once a month. But then I’ll go out and end up at the strip club and blow a few hundred lol. I also like to try a local/new restaurants when I can. I probably do this 2/3 times a month.

I’ll post this getting started on investing guide I read a few years back. It was a good overview. I’ve adapted it to fit my lifestyle you do the same or follow it exactly. Or disregard it altogether. It’s called investing but u can just follow the pre-investing portion.

——————

Speaking of Multiple Bank Accounts. Does anybody ‘churn’ bank accounts with their savings? I did a couple here and there. I think it’s an easy way to make an extra rack a year.
 

Panther

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Gotcha, Keep track of all my stuff through Mint & Personal Capital. Honestly don't know how I would remember all of my bills without them.
Yeah @phcitywarrior gave a good breakdown. Been using that style of budget for the past 2 years or so. I used to have a cash heavy job and it helped me see where my money was going.

I also watched a youtube video on Personal Capital. How much do they charge per month?
 

Silkk

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Yeah @phcitywarrior gave a good breakdown. Been using that style of budget for the past 2 years or so. I used to have a cash heavy job and it helped me see where my money was going.

I also watched a youtube video on Personal Capital. How much do they charge per month?
Its free
 
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