Do you budget or fly by the seat of your pants?

Joey_V

My brother and I got into a discussion tonight - about budgets.

Just kinda want to see how many here stick to a budget (and how strict are you) and how many here are fly by the seat of your pants?

No need to put out some exact numbers. Just want to know if most budget monthly.

As for us, we have a budget that we try to stick to but we are a little relaxed about the numbers. It's more like an alarm system, once we go over budget, we usually try to figure out what went wrong and see if it's something we can correct. It's not however so strict that say, we hit the ceiling of our "dining out" budget and we all of a sudden stop cold turkey for the rest of the month.

My parents, on the other hand, never had a budget. And they wondered why at the end of every month, there were in the red.

Also - do you have a savings goal every month?

I find having a savings goal keeps your eye on the prize

Willow

We have an excel sheet with all our bills and incoming cash done up until April of next year. We try to follow it, we do usually go over our budget for groceries but that's ok because it is food. We do have a goal at the end of the month and that is to put as much as we can into bonds or kids education funds. (RESP) I what we call it up here. Each child has one as well as a Canada Savings Bond which they will get when they are 16 or anytime after to buy a used car or use for a big trip or even education.

motorhead43026

I pay myself (save) 20% of my salary before spending on anything frivolous.

[Deleted User]

You mean you pay the government their 20%,
then you pay yourself your 20%. I wise man
told me to do this years ago. Should have
listened but when you partner with someone it becomes...
"Do you budget or fly by the seat of your pants?" Commando.

tonyb

motorhead43026 wrote: »

I pay myself (save) 20% of my salary before spending on anything frivolous.

motorhead43026 wrote: »

I pay myself (save) 20% of my salary before spending on anything frivolous.

Good man, the old saying of "pay yourself first" works very well and your budget becomes obvious after that.

Upstatemax

We were fairly loose with it this past year.

We had a rough budget, but we never really stuck to it that well. Never anything too bad, but enough that we realized that we wasted a lot of money this past year.

We have put ourselves on a strict budget for the next 6 months to force ourselves to save money again. After the six months, if we hit our savings goal, we will relax a bit more, but still focus on saving money.

mrbiron

Me = Budget
Wife = Cookie Monster for Money...nom nom nom nom nom!!!!

tonyb

Budgets and saving money ? That's so 1956...lol.

cstmar01

Well I budget everything down to the dollar. I have a set amount I save each month and then have strict budgets for food, car, gas etc with some run over being ok but overall stick with it. Drives my gf nuts but I am just anal about it. Of course I have 401k, life insurance, etc as well that gets taken out but that's fixed and don't even think of that being a part of any disposable income.

Also I'm fairly young at 29 years old. I have learned the hard way of not following a budget and not being prepared for stuff.

cfrizz

I don't really budget, but I automatically invest in some American mutual funds and have money taken out of my checking and sent to a Fidelity savings acct every month.
This is on top of having 10% of my check put into my 401k.

It's much easier to have this done automatically, that way you don't have to think about it, it is just done.

I have used Quicken for over 20 years and this helps me keep track of where things are and balancing my virtual checkbook.

But mainly I just use common sense and if I spend too much one month, I cut back the next.

Listening to my Great Depression surviving mother about always having savings is what has allowed me to achieve everything I have now Tony, and has me on track to retire in 8 years!

Flying by the seat of your pants, has a great many people working until they drop dead because they never thought thinking about the future was important.

mhardy6647

We don't, in my opinion budget (my wife would likely disagree). We do have targets in different spending areas (automobile, food, travel, clothing, charitable giving, etc.) and, being on a quasi-fixed income, we do aggressively track our spending, including cash spending (which requires both some discipline & some "intentionality", but it is well worth doing, I'd opine).

For better or worse, we manage most of our regular monthly expenditures via Discover card. Of course, we pay off the balance every month so as to incur no finance charge, and Discover, bless their hearts, pays us every month to use them instead of greenbacka dollas to pay for stuff. Then every month, we ("we" = ahem, Mrs. H!) reconcile the statement against receipts to make sure everything is kosher and to pull the expenditures into our spreadsheet.

Strong Bad

Can't say I sit down and budget things since it's just myself. With that said...

Starting in January, with the new company's (old company sold a year ago) increase in 401k match and my slight bump up on my end, along with the life insurance...i'll have equivalent to 1/3 my gross salary being put into investments.

The rest thats left over, always gets the bills paid and I make sure I take care of myself with toys here and there. Really helps with having a car thats been paid off for almost 3 years...and a Harley thats been paid off for over a year. Food and eating healthy, gym membership...I look at those 2 as an investment just as much as the $$$ I put away. Who wants to get to retirement, only to be in terrible health and not be able to enjoy said retirement and money. It's not a guarantee, but it's all about increasing odds.

I see people dumping perfectly good cars with absolutely nothing wrong with them so they can say "Look at me with the latest and greatest." They're never to a point where they have no vehicle payments. Such waste, but thats the material society we live in.

cnh

Budgets! Isn't that for Home Economics students in H.S.?

No budget here. Never use one, too restrictive too neurotic, too stressful, IMHO! We've figured out a better way. Move to a place FEW people live with no distractions and little to buy, few places to eat out, and NEVER go to a movie. So, don't eat out, don't DO anything that requires money, don't travel much unless your college is paying for it, don't buy much other than FOOD, pay your bills on time, and live a life of TOTAL BOREDOM. Retire to your books, music, and these forums and you'll NEVER have to worry about a budget again! And, of course, MAX out whatever retirement package, venues you have, and then some! Who needs a budget? Spreadsheets? I have an accountant who does those for tax purposes. I hate entertaining "anything" economic-it disturbs me greatly I live in a society where the Economy is everything-just doesn't seem ethical? Every time I want a "reality check" all I have to do is stroll down to the Economics Department, take a look at one of their white boards and laugh myself silly at how much THEORY and IDEALISTIC drivel is strewn across them! So many Depts. strive so hard to "become" a science when they should just be basking in the sunlight beachside with a few margaritas! lol

Of course, NO ONE would WANT to live my life! lol But hey, I didn't say this is for everyone! lol When you don't "spend" you don't need a "budget", as long as you're NOT living on the minimum wage. That is the big proviso! You have to make a "real" salary, not the kind of salaries this economy seems to be generating-episodic employment, no benefits, part-time work, minimum wage or below, and job security is a four letter word for many? My oh my, where have all the people gone, the "human(e) beings"!

ken brydson

cnh wrote: »

Budgets! Isn't that for Home Economics students in H.S.?

No budget here. Never use one, too restrictive too neurotic, IMHO! We've figured out a better way. Move to a place FEW people live with no distractions and little to buy, few places to eat out, and NEVER go to a movie. So, don't eat out, don't DO anything that requires money, don't travel much unless your college is paying for it, don't buy much other than FOOD, pay your bills on time, and live a life of TOTAL BOREDOM. Retire to your books, music, and these forums and you'll NEVER have to worry about a budget again! And, of course, MAX out whatever retirement package, venues you have, and then some! Who needs a budget? Spreadsheets? I have an accountant who does those for tax purposes. I hate entertaining "anything" economic-it disturbs me greatly I live in a society where the Economy is God?

Of course, NO ONE would WANT to live your life! lol But hey, I didn't say this is for everyone! lol

Just kill me now....

smglbrth

Sure, we budget, save as much as we can, pay the bills..., what a concept huh?!? Now, if we could only get our federal government to do the same...

cnh

ken brydson wrote: »

cnh wrote: »

Budgets! Isn't that for Home Economics students in H.S.?

No budget here. Never use one, too restrictive too neurotic, IMHO! We've figured out a better way. Move to a place FEW people live with no distractions and little to buy, few places to eat out, and NEVER go to a movie. So, don't eat out, don't DO anything that requires money, don't travel much unless your college is paying for it, don't buy much other than FOOD, pay your bills on time, and live a life of TOTAL BOREDOM. Retire to your books, music, and these forums and you'll NEVER have to worry about a budget again! And, of course, MAX out whatever retirement package, venues you have, and then some! Who needs a budget? Spreadsheets? I have an accountant who does those for tax purposes. I hate entertaining "anything" economic-it disturbs me greatly I live in a society where the Economy is everything?

Of course, NO ONE would WANT to live your life! lol But hey, I didn't say this is for everyone! lol

Just kill me now....

That's the idea! I'm really training for that ONE WAY TRIP TO MARS! And I think I have a GREAT shot at it! lol

MrBuhl

We used to have an exact budget and stick to it strictly. Now we operate pretty much exactly like you to Joey, but we always talk about going back to being more strict about it. Or at least my wife does anyway. As income has gone up, so has laxness.

I religiously save for retirement, so I don't worry about that as much, that comes out before anything because I can't WAIT to retire LOL!

badchad

I keep a detailed budget, but its mostly for informative purposes. I place as many purchases as possible on my credit card so I can have a detailed account of (literally) everything I spend money on, and its convenient.

Generally speaking, I'm well-into the black every month so my "budgeting" is strictly informative.

WagnerRC

Living debt free is the only way to go. Works for me and it's great

mhardy6647

I concur -- I seriously dislike* debt, even mortgage debt.

* EDIT: oops, I typed "like" initially. D'oh.

mikeyb128

I usually fly by the seat of my pants. But, all bills get paid, I never fall behind. I put away 150 each check into savings. And any cables or small items I sell I put a portion into savings. Every time I do debit transactions a dollar goes into there as well. I'm young and make decent money. Growing up our family didn't have any money, we were basically poor. so I find myself buying what ever I want (within reason of course, I can't afford a 911 gt3 rs). The only debt I have is a car, and one credit card. I rent a fairly large house. So debt is small, allows me to buy cool stuff! Usually cars and audio. Basically couldn't get more expensive hobbies.

WastelandWand'r

I tried budgeting, but I had a hard time keeping a checkbook ledger up to date back when I actually wrote checks. I haven't carried a check book in 15+ years and am not sure I could actually fill one out without thinking about it for a long time.
Everything I do is on a credit card for the airline miles, (AK AIR) so I can see where I spend my money every month. (I know it's a month late but at least I can review it and see what I am doing) I can carry $50 bucks around for 2 weeks and never spend it.
I (wife and I) have saved for retirement since day one but have not made it such a priority that I don't live now. I have a lot of stuff that i like to do and don't want to wait until I am 60+ before I start doing them.

tonyb

WagnerRC wrote: »

Living debt free is the only way to go. Works for me and it's great

Amen brother....when you can anyway. Most don't have the cash to pay for a 300k house or 30-50k car. Trick is, when you pay them off, don't rush out to buy new ones incurring that debt cycle all over again. When I pay off a new car, I keep it another 10+ years so I don't have that payment.

It's a weird thing, you get chastised for not saving money, and get chastised for not spending it supporting the economy. If your not spending, government isn't collecting a good hunk of taxes. Stores fail, stock prices go down, unemployment rises.

So what happens then when too many save money ? They take it from you by force. Raise tax rates or add new taxes.....which takes away your enjoyment of buying "stuff".

A capitalistic society requires balance, but balance is not a term recognized by the powers at be who thrive on power and greed.

I never had a budget per say, I use common sense instead. Spend too much one month, cut back the next. Don't need a written log to know buying a piece of audio gear for 2k or a trip to the Bahamas is going to put a dent in the finances.

Paying yourself first dictates that budget anyway.

btw Cathy, my 1956 comment was sarcasm. lol

EndersShadow

My wife's job is to budget. Mine is to BLOW that budget however possible.

In all honesty if we are talking audio stuff, I try to buy something ONLY if I can sell something to pay for it, either before or after buying the new item.

mhardy6647

the whole concept of "balance" seems to be on hiatus in recent years :-P

steveinaz

Budget for sure---been using excel since the early 90's, and still have every file saved. Before excel and my first PC, I used ledger books and a pencil. I'm money-nervous. I like to know what I have at all times.

Joey_V

tonyb wrote: »

Budgets and saving money ? That's so 1956...lol.

Hehehehe

Joey_V

DSkip wrote: »

I don't fly - its more like a dragging.

Dragging by the seat of your pants? I notice a running theme with you...

beans... bathroom breaks... now this? Always revolves around the buttocks, eh Skip?

Joey_V

tonyb wrote: »

I never had a budget per say, I use common sense instead. Spend too much one month, cut back the next. Don't need a written log to know buying a piece of audio gear for 2k or a trip to the Bahamas is going to put a dent in the finances.

Speaking of which, my wife got so tired of seeing all these audio gear purchases that she asked me to make my own bank account for audio... and label it the Audio Account.

She is tired of randomly seeing an amp purchase or a speaker purchase... and then she has to coordinate it with the rest of the budget.

Joey_V

motorhead43026 wrote: »

I pay myself (save) 20% of my salary before spending on anything frivolous.

20% is a great number man... I always say 15% is minimum and any more than that is gravy. At this time, our expenses did go up, and right now I think I am at 40% savings rate depending on the month. I was at 60-70% savings rate a couple years ago. So I am a little bummed about that. :

This is in addition to max 401K.

Once my final (paid off 4 of the 5 already) student loans are paid off in 4 years, I am going to be a savings machine. After I pay off my house in (we have a 15y loan), I am going to be savings beast. Arrrrgghhh!!!!

Crossing my fingers my plans dont get derailed...

exalted512

I keep a spreadsheet of every transaction I make with my debit/credit cards and paypal down to the penny. I've done that for about 5 years now. I'm incredibly tight with my money so I can enjoy my motorcycle racing hobby. About the only budget I pay attention to is eating out. I average $35/mo and I will go without to maintain that average. Now, if I'm over on groceries, I try to spend less the next month. Most of the time I'm successful, but I don't fret if I'm not. We don't buy much junk food or even pre-made dinners - so there's not a lot to cut.

20% of my income goes to retirement and savings. We own a house in town that we rent out since we moved out to the country. I built a 1-bedroom 'barndominium' (did everything but the slab and tape/float/texture the dry wall) that we are living in (my wife and I as well as our 1 year old daughter) until we can save enough to build our dream house on the same property. We hope to start on it in less than 2 years from now. We just paid off our only car note (my truck has been paid for 5 years) so we're trying to put away all we can for a down payment.

We probably have too much debt (mortgages) according to Dave Ramsey, but we have steady jobs, a great 'rainy day' fund, and we're not big spenders. And when the house is paid off in about 16 more years, we'll have a good amount of income from that as well. I just hope we don't have to sell it to get the house we want when we go to start building.
-Cody