Announcement

Collapse
No announcement yet.

Basic Cash flow

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Originally posted by uksho View Post
    I have never budgeted truly , I pay myself first and save what I need to .
    I have a very good idea about what we spend every month or year. , but not on how much we spend on clothes vs grocery vs other things ?

    how helpful are these apps/ sites with calculating your expenses in different areas ? Any privacy concern with all your passwords with them ? Which one do you trust most ? Thanks
    I use personal capital and like it better than mint. They will attempt to categorize expenses with varying accuracy. You can certainly go in and do it manually. Hard if you buy everything at Amazon though. I at times have gone back at end of year and tried to categorize at least on large expenses, you can sort by date range, size etc. Have never been a strict budgeter but good to have rough idea for planning

    Some people do have privacy concerns but I think it's overblown

    Comment


    • #17
      Originally posted by mw82 View Post

      I want to learn more about budgeting/cash flow. I am using YNAB, but my spouse and I consistently run out of money before the next pay check comes in.
      I'm sure most of it is just discipline, but I really need some help.
      This is not really budgeting. This running out of cash. My question is how are you spending money? Is it the credit card bill is due and you are short? Is it you have auto-payments?
      1. Make up your mind how much of and Efund or balance you need.
      2. Make a list of the monthly bills. Everything that you pay monthly.
      3. Add in any bills due next month.

      I don’t care if it is detail or calculated. How much money coming in less money going out NEXT month.
      You have so much information available online (banks and credit cards) the you can download into excel and simply look at one or two months.
      One number, monthly spending!
      Bottom line is you need it in the bank before you spend it. Minimum 3 month’s of expenses in your EFund.
      Guess what, you never run out of money again. It’s not discipline or software, it’s your approach. Buy now, pay later.
      Figure our how much you can spend next month, then earn it and save it. Scrounge up the money for vacations, annual car insurance or whatever before it’s due. This is simply not looking ahead one or two months. You are talking about paycheck to paycheck cash flow.

      Not budgeting, like how to allocate spending and savings.

      The software won’t fix the problem. You need to plan how much cash you need and have an Efund. Intellectually lazy looking for the magic pill

      Comment


      • #18
        Originally posted by mw82 View Post

        I want to learn more about budgeting/cash flow. I am using YNAB, but my spouse and I consistently run out of money before the next pay check comes in.
        I'm sure most of it is just discipline, but I really need some help.
        This suggests that you are overestimating how much walking around money you have. The first time I totted up my expected annual expenses I was shocked at how little my "allowance" was for day to day spending. Once I realized that, I gave myself an amount I was allowed to spend each paycheck, calculated the average daily amount I had to spend, and when it was gone the spending spigot was torqued off - if I didn't have it in the cupboard, I couldn't have it until the next pay period.

        Comment


        • #19
          Originally posted by mw82 View Post

          I want to learn more about budgeting/cash flow. I am using YNAB, but my spouse and I consistently run out of money before the next pay check comes in.
          I'm sure most of it is just discipline, but I really need some help.
          You need to look back at all your spending for the last 6-12 months to see where you are leaking money. You can fill out this budget template and then figure out which areas you can cut back and then religiously track your spending moving forward to help you stay on track.



          INCOME

          SO #1 monthly take home

          SO #2 monthly take home

          other income monthly



          BILLS

          mortgage/rent

          garbage

          cable

          Netflix/other streaming services

          landline phone

          internet

          cell phone

          electric

          natural gas/propane

          water

          alarm

          life insurance (outside of work)

          car insurance

          home insurance (if not included in mortgage)

          daycare/preschool

          DEBT

          (list smallest to largest by total due, include monthly minimum, interest rate, balance owing)

          credit cards

          car loan

          student loan

          medical bills

          (add anything else you have here - personal loan, line of credit, rent to own, whatever)

          MONTHLY SPENDING

          auto: fuel

          charity

          groceries/toiletries

          eating out

          blow money

          entertainment

          college savings

          retirement savings (outside contributions through work)

          newspaper/magazine/online subscription

          SINKING FUNDS

          (Take the amount you expect to spend in a year, divide by 12 and set aside this amount each month in savings.)

          clothing & shoes

          haircuts

          pet care

          gifts, parties

          school expenses

          household/garden

          Christmas/birthdays

          home repairs and maintenance (1-3% of house value per year)

          car repairs and maintenance/tags ($75/car/month recommended)

          car registration/tags/taxes

          ($75/car/month)

          electronics replacement

          medical (rx, copays, contacts, dental)

          kids classes/activities

          adult classes/activities

          tuition

          property taxes (if not included in mortgage)

          adult classes

          travel

          AAA, etc.

          new car fund

          Comment


          • #20
            Originally posted by F0017S0 View Post
            YNAB, Mint, Personal Capital (https://www.investopedia.com/persona...ting-software/).

            jfoxcpacfp will have a more comprehensive list and might be a better guide.

            Welcome aboard!
            Is personal capital safe to use since you have to link your accounts? It’s also appears to be free.

            Comment


            • #21
              Originally posted by chocolatebear11 View Post

              Is personal capital safe to use since you have to link your accounts? It’s also appears to be free.
              As safe as you can be in our digital world when using any of the other major products out there…

              Comment


              • #22
                Originally posted by chocolatebear11 View Post

                Is personal capital safe to use since you have to link your accounts? It’s also appears to be free.
                It's free but they will try and call you to convince you to use their investment strategy and pay them AUM. They eventually stop calling

                Comment


                • #23
                  +1 to using YNAB. My wife and I just started and so far it's quite powerful. Definitely a learning curve, but the concept of "aging your money" is a game changer in my opinion. You only spend the dollars you already have, you don't anticipate future dollars coming in to cover past expenses. You can still use a credit card (we do) to get rewards and such, but functionally it becomes like a debit card. Just like anything though, if you ignore your budget and don't log your transactions of course it won't stop you from overspending.

                  Another thing to consider would be some sort of a "30 day reset" where you basically live a Spartan lifestyle for a month and only spend on things that you legitimately NEED: groceries, electricity, rent/mortgage, gas, but completely avoid unnecessary spending: eating out, alcohol, entertainment, clothes, etc. It can be quite eye opening as to what you actually need to survive and what things you can and can't live without.

                  Comment


                  • #24
                    Originally posted by mw82 View Post

                    I want to learn more about budgeting/cash flow. I am using YNAB, but my spouse and I consistently run out of money before the next pay check comes in.
                    I'm sure most of it is just discipline, but I really need some help.
                    Sounds like you all need to use only cash for a few months. When there is no cash left, there is none left to buy with. It may help to turn this around.
                    Also, I agree with CordMcNally that Dave Ramsey is good with this concept and getting people to live below their means.
                    I have never used YNAB but I know that Mint is a retrospective look, not prospective. You need prospective.

                    Comment

                    Working...
                    X