Personal Budgets.

[notoppings]

Do you make a budget and live by it? or do you just wing it and let things happen as they may?

Are your bills overwhelming you? Do you live paycheck to paycheck?

I would tend to believe that most here form some sort of budget, if not on paper at least in there mind, knowing how much is coming in and going out. If you don't how are you doing?

I couldn't wing it. I protect my credit rating with a passion. I can't live with a no pay or a slow pay, on paper my credit rating is all important. It is how others who review it see me. Honest, dependable an excellent credit risk.

I depend on it and never overextend. I wouldn't go so far as to rob a place to keep it great but I will go without, in order to pay off a bill. Many was the time that I lived on rice and beans or ramen when I was younger in order to make ends meet, before I learned the lesson to live within my means.

How about you younger folks here have you learned that lesson? Do you find it hard to deal with the ever increasing cost of living?

[Erika Redmark]

I'm not financially independent of my parents yet–I just started college this year and I've never had a job–but when I do have money of my own, which is basically when I go on trips and stuff, I tend to be pretty frugal with it, so I often find that I have a lot left over at the end (and I could have bought that awesome souvenir and not had anything to worry about!). So if that's any indication of how I'll function when I do have to take care of myself financially, yeah, I probably will do some careful budgeting.

ETA: I would probably have no problem living on ramen noodles–I can't cook anyway. And that stuff's not bad. :laugh:
(I wonder why my Firefox spell checker thinks "stuff's" isn't a word.)

[notoppings]

I'm not financially independent of my parents yet–I just started college this year and I've never had a job–but when I do have money of my own, which is basically when I go on trips and stuff, I tend to be pretty frugal with it, so I often find that I have a lot left over at the end (and I could have bought that awesome souvenir and not had anything to worry about!). So if that's any indication of how I'll function when I do have to take care of myself financially, yeah, I probably will do some careful budgeting.

Good job, it's always best to have to much then to little.

[Vertigo]

I don't make a budget on paper, but I know how much my bills are each month. I always like to save money, I never know when something will come up. I guess the closest I get to a budget is giving myself an allowance each week and forgetting about the rest.

[AJB]

I keep a spread sheet with the dates and amounts of bills owed. Its broken up by pay periods. I used to keep it in my head or just a stack of bills, but there's too much to keep track of now to "wing it". Plus like notoppings, I don't want to mess with my credit score.

[Cuivienen]

I`m also still financially dependent on my parents, I feel very lucky that they provide me with the money for rent, phone/electricity/water/internet bills, groceries and the other basic necessities. However my budget is rather limited, I get by, but there is rarely anything left at the end of the month and if there is, I usually spend it on textbooks for my university courses or occasionally small luxuries like a book or *good* food, but it is necessary for me to plan quite a bit to get by.
Several times, when I found i really needed a certain textbook now instead of next month, I`ve compensated for that by living on rice and fruit for a week or two - if I do that for any longer period than that I start feeling constantly tired due to lack of nutrients, though.

I don`t even want to get started using a credit card, generally I need all or most of the money I have in one month to get by, so spending the money I won`t get until next month now would be imprudent to say the least.

[notoppings]

It seems like maybe it's a INTJ thing to save or not overspend. It also sounds as if those who stay at home with heir parents are also preparing right. Good patterns all around.

I feel for my friends who live on those payday loans. They never get out of the hole it's always taken out at the beginning of the pay period and towards the end they get another loan. I try to show them ways to get out of the cycle but as soon as they get a few dollars up (Even $20.00) they go out and spend it, saying it's not enough to do anything with so I might as well blow it. They can't seem to understand that it takes 100 pennies to make a dollar and each dollar gets you closer being debt free.

[Double Victory]

I'm a college student. My main priority is to keep my amount of debt from increasing more than a couple thousand each year. (Whoo tuition!!) I've been working since I was sixteen, and as a result I could afford to buy a car off of my dad, my books, bills, and whatever tuition that isn't covered by loans or grants.

Luckily for me, my family has suffered financially for a long time, and I'm intelligent, so so far most of my tuition has been paid for by government grants. Usually I only have to take out about $2.5K in loans each year. As of this current moment, if I cashed in all of my bonds and CDs, I could pay off my loans, so my actual debt isn't real. I just don't usually count my emergency funds as actual, spendable money. Next year, if all goes as plans, I'll be on scholarship with the Air Force, so all of my tuition will be paid for.

When I graduate college and start up a "real" job and get "real" bills and such (right now I pay "rent" to my grandparents at $35/mo), I will definitely start keeping track of absolutely everything that I have to pay for. I'm a compulsive schedule maker as it is, and I'll want to know exactly how much I have to spend. I will be budgeting everything from bills to food to gas, plus a couple thousand for unexpected costs (car repairs, etc....). I want to put at least 75% of whatever remains in my savings, or invest it, or something to that effect.

Right now, I just try to aim for keeping my spending under $200 a month. I have enough saved away to keep me from worrying too much about how much I have to spend right now, as long as I don't go crazy. I'm not expecting to get out of college without debt, anyway. I'm very frugal, though. I very rarely spend money anything that isn't absolutely necessary.

Cuivienen--the point of credit cards is not to spend money you don't have. That's how people end up with tens of thousands of dollars of debt. I use a credit card for two reasons. One, so I don't have to carry large amounts of cash on me (and I'll be honest--I don't know how to write a check), and two, to start raising my credit score. I'm always aware of how much money I have in my checking account so that I never go over.

EDIT:
It seems like maybe it's a INTJ thing to save or not overspend. It also sounds as if those who stay at home with heir parents are also preparing right. Good patterns all around.

I feel for my friends who live on those payday loans. They never get out of the hole it's always taken out at the beginning of the pay period and towards the end they get another loan. I try to show them ways to get out of the cycle but as soon as they get a few dollars up (Even $20.00) they go out and spend it, saying it's not enough to do anything with so I might as well blow it. They can't seem to understand that it takes 100 pennies to make a dollar and each dollar gets you closer being debt free.

Yeah, I have a ton of friends like that as well. I have a friend in college who has enormous credit card debt.... These things just baffle me. It was one of the reasons I hated being a waitress, because instead of spending their money on something useful that could help them get a better job and a better life, instead they spent it all on alcohol....

It might just be my mindset, but $20 is still a lot of money to me. (So when I get those auto repair bills for upwards of $600.... oh boy....) The idea of spending that $20 on something other than your debt is like stealing. You OWE that money to someone else--it's not your money.

[mkay]

My INTJ husband and I live well within our means and shun debt, always have. We don't need to budget, but I (ENTP) did when I was starting out. I worked my way through school, had college debt after graduation. I gave myself one year to pay off $8,000 on a measly salary. I did it by budgeting like crazy and living cheap.

We're also protective of our credit ratings, not only for financial reasons. Two of my past jobs involved financial and criminal background checks before hire.

[Cuivienen]

Cuivienen--the point of credit cards is not to spend money you don't have. That's how people end up with tens of thousands of dollars of debt. I use a credit card for two reasons. One, so I don't have to carry large amounts of cash on me (and I'll be honest--I don't know how to write a check), and two, to start raising my credit score. I'm always aware of how much money I have in my checking account so that I never go over.

As far as not wanting to carry much cash around, I pay for a lot of bigger investments (which for me currently means anything over 30€) with my regular bank card. As for the credit score, you have a point about that, but to me it isn`t worth putting myself in danger of that kind of extra temptation if it isn`t absolutely necessary. I prefer keeping it so that I can`t spend more than I get each month.

[Double Victory]

As far as not wanting to carry much cash around, I pay for a lot of bigger investments (which for me currently means anything over 30€) with my regular bank card. As for the credit score, you have a point about that, but to me it isn`t worth putting myself in danger of that kind of extra temptation if it isn`t absolutely necessary. I prefer keeping it so that I can`t spend more than I get each month.

Well, if you feel like you'd be tempted with a credit card, then it's very smart of you not to have one. If your bills are in your name, you'll be raising your credit score by paying those, anyway.

[dori]

i dont have credit or finance in any shape or form. i got caught before by an ex that couldnt resist the "shiny's". when he left, i swore never again. if i want something i save for it. i can and have survived extreme poverty through attention to them all important pennies. :)

[INTJoe]

I feel for my friends who live on those payday loans. They never get out of the hole it's always taken out at the beginning of the pay period and towards the end they get another loan. I try to show them ways to get out of the cycle but as soon as they get a few dollars up (Even $20.00) they go out and spend it, saying it's not enough to do anything with so I might as well blow it.

Payday loans should be avoided at all costs. I think personal debt, or "credit" as they call it, became widespread in the early 70s, and has really taken hold of the typical middle-class American. The downward spiral needs to stop. Two years ago I made a conscious decision to get out of debt/stop borrowing, and it's been all uphill since.

Anyway, I don't keep a written budget, and I've actually never balanced my checkbook. I always keep a base amount in my checking account so I know I'll never overdraft. I'll peruse my statement online once in a while to make sure of no double-charges. My Sensor girlfriend actually takes care of all our bills, because I hate doing it, and wouldn't get them done on time. She knows I make sure there is always enough in our account to pay bills. The rest I send to the stock market, our Roths, or e-savings.

We save about 60% of our net earnings.

[cBorg]

Anyway, I don't keep a written budget, and I've actually never balanced my checkbook. I always keep a base amount in my checking account so I know I'll never overdraft. I'll peruse my statement online once in a while to make sure of no double-charges. My Sensor girlfriend actually takes care of all our bills, because I hate doing it, and wouldn't get them done on time. She knows I make sure there is always enough in our account to pay bills. The rest I send to the stock market, our Roths, or e-savings.

We save about 60% of our net earnings.

I do the same and keep enough in the checking account to cover all bills. I usually keep about 150 - 200% of monthly bills in the checking account so I have plenty of room for unexpected expenses. My husband keeps a separate checking account - he balances everything to the penny.

60% is amazing! Great work.

[INTJoe]

My husband keeps a separate checking account - he balances everything to the penny.


Can I ask why you don't share a joint account?

[cBorg]

Can I ask why you don't share a joint account?

Well partly out of habit. We lived together for 5 years before getting married and were used to splitting up the bills with separate accounts. By that time we had also realized we managed money differently, and we are both very independent. (He's IxTJ) He balances everything carefully, and I just check the statement every month.

Also, once we take care of our part of the monthly responsibilities we can each buy whatever we want without worrying about stepping on any toes. We do have joint savings and investment accounts. I don't know anyone else who does this, but it works for us. (also, both of us work so that makes a difference)

[INTJoe]

Well partly out of habit. We lived together for 5 years before getting married and were used to splitting up the bills with separate accounts. By that time we had also realized we managed money differently, and we are both very independent. (He's IxTJ) He balances everything carefully, and I just check the statement every month.

Also, once we take care of our part of the monthly responsibilities we can each buy whatever we want without worrying about stepping on any toes. We do have joint savings and investment accounts. I don't know anyone else who does this, but it works for us. (also, both of us work so that makes a difference)

Interesting. I've lived with my ISTJ gf now for over 2 years and we have a joint checking account. Needless to say, we have a great deal of trust in eachother. Most people would justifiably not do this until marriage. We also have joint savings, and I make sure her Roth IRA gets fully-funded every year. We've also gotten out of debt together.

I enjoy having joint accounts because it's cleaner, and it makes us responsible to eachother. All our expenditures are coming from the same pot, so, although we both work, neither of us goes hog-wild and buys stupid shit without consent. I happen to make more money than her, but we treat all of our dollars the same; we're in it together! :thumbsup: Also, when "we" got out of debt together, I had much more of it than she.

Debt-guru Dave Ramsey suggests never sharing joint accounts until you are married, and at that point...always using a joint account.

[notoppings]

Interesting. I've lived with my ISTJ gf now for over 2 years and we have a joint checking account. Needless to say, we have a great deal of trust in eachother. Most people would justifiably not do this until marriage. We also have joint savings, and I make sure her Roth IRA gets fully-funded every year. We've also gotten out of debt together.

I enjoy having joint accounts because it's cleaner, and it makes us responsible to eachother. All our expenditures are coming from the same pot, so, although we both work, neither of us goes hog-wild and buys stupid shit without consent. I happen to make more money than her, but we treat all of our dollars the same; we're in it together! :thumbsup: Also, when "we" got out of debt together, I had much more of it than she.

Debt-guru Dave Ramsey suggests never sharing joint accounts until you are married, and at that point...always using a joint account.

I've always had difficulty sharing an account with anyone, it's not just a trust issue, for me it's more of a lack of faith in the others ability to finance/budget well. My partners have always loved the toys to much.

[mkay]

I could see that being hard, trusting your finances to someone else when they love toys or overspend. Keeping separate accounts probably works better in such instances. I wouldn't pool unless I felt comfortable with the other person's financial thinking.

My husband and I pooled finances when we got married. It works well for us because we think similarly about money. I take care of bill-paying, taxes and such. We share investment decisions. He's more trusting than I would be about money. It would take him awhile to figure out if I emptied out our accounts.

[INTJoe]

I've always had difficulty sharing an account with anyone; my partners have always loved the toys to much.

Is that, or has that typically been, bothersome for you? What I'm getting at (and these are more Dave Ramsey's words), is that instead of having the attitude of "You spend yours, I'll spend mine", in a marriage, it should be "Let's put our money together and work toward 1 goal"...and then when your partner spends lavishly, you have the ability to go to them and say "Hey, I don't think we can afford this."

While this might start a lot of fights, it keeps everyone on the same page, and working toward 1 goal, which is probably best in the long-run. A lot of financial problems in marriages aren't due to lack of money, but they are due to (usually) the wife resenting her husband for his poor spending habits and apathy for their financial goals. Many times the husband has the attitude "I earn $10K more per year so that means I get $10K worth of toys, so that everything is fair."

Of course I'm painting with a broad stroke here.

[dissident]

Don't really have a budget because I live and always have lived quite cheap and have never not had positive cash flow causing my checking account to go up and allowing investing in things like physical silver and numismatic coins both of which have done well. I'm not a big materialist expensive toys that depreciate in value don't really do it for me. I'd rather save and invest and retire at 45-50.

My new job brings in significantly more money then previous jobs, though still not high by most people's standards. Still right now I only pay about 15% of monthly income towards rent, all utilities paid, leaving significant positive cash flow. That's just the way I like it... to me that's freedom. Being single really helps. Women are expensive generally speaking.


I feel for people going through college right now.. the costs are just insane and not justified by any rational measure. I'd only do it if I knew the career I was going into would be in high demand going forward, such as a pharmacist or engineer. Liberal art's degrees are not worth the money invested, in my opinion.... unless of course you have absolutely no assets of any kind and you use the system to your advantage to simply default on all your student loan debt.. perhaps not the most moral thing, but who cares.

[mkay]

I feel for people going through college right now.. the costs are just insane and not justified by any rational measure. I'd only do it if I knew the career I was going into would be in high demand going forward, such as a pharmacist or engineer. Liberal art's degrees are not worth the money invested, in my opinion.... unless of course you have absolutely no assets of any kind and you use the system to your advantage to simply default on all your student loan debt.. perhaps not the most moral thing, but who cares.

I'd be careful about defaulting on student loans, morality aside. Not only are they hard to get out of, defaulting will be a mark against your credit history, which more and more employers check. That's not just for jobs involving money; more employers are seeing a link between job candidates' trustworthiness / reliability and credit history. Marks against your credit history also will appear in credit checks when you try to rent an apartment, buy a car or home, get a credit card, for instance. Even if you're approved for more credit, you'll probably pay higher interest rates. I don't know whether insurance companies went through with this, but there was talk of them screening financial histories of customers because they saw a correlation between people with poor financial records and the likelihood of questionable insurance claims. On that premise, they would decline you coverage or charge you more. So be aware of the consequences if you consider defaulting.

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[PRBori]

Hmm... well after my divorce I got impacted pretty bad financially so I'm still in re-coupe mode. The job transition didn't sit well either, there was 1wk no work and 2 on hold, so a total of 3 weeks on hold, that's 3K loss. My savings of course where use up to cover for that hit.

Anyway, I'm on a paycheck-by-paycheck right now doing my best to stay real. My previous job used to pay on a weekly basis, so I was able to do my calculations on a weekly basis. The new job pays semi-monthly and I still have not gotten paid, so I'm not sure how I can juggle and honestly is driving me nuts. I have estimated what I can in an excel spreadsheet to see how things are looking for the next 2 months. I also have set-up an automatic withdraw from my checking to savings. Right now is set to $50/wk going into a high yield interest savings account, I'm hoping to increase it to $100/wk in the next two months.

When it comes to bills, most my bills are medical. Nevertheless I combined all the bills into a Debt Management Company CareOneCredit and make a single monthly payment to all of them. I only have 1 credit card... I've never being fond of them at all, most of them I closed after I pay them off. My debt is less than 15K and I have no desired of adding to it at all. I got a used car to avoid car payments and use as part of plan C if I ever fall under it.

Here is how I break down my plan B and C.

Plan B is sell items on the house to balance up the finances.
Plan C is emergency.. payday loans or car pawn

I try dearly to not fall in Plan C although I won't denied that I have felt on it a few times, specially pay day loans. I use Zip19 which has a steady fee of $20/100 dollars. That never changes, and I don't take more than 500, I do my best to take the less possible.

I'm looking into getting a part-time job to cover for other expenses... I plan to pay off my DEBT in full this year and I have to plan for a possible heart surgery on my daughter. On top of it I have some family members coming over and too many other things to take care off.

So things right now are very tight.... although I know I'm doing a lot better than a lot of people, I still have a lot to do. Daycare alone is $218/wk and rent is $1600, plus gas, food, clothing, nany expenses during business travel,etc.. Not a whole lot for entertainment at all right now. Welcome to the life of a single parent...

Anyway, all in all, I have to plan, write it down, and have a good view of what's ahead and right now I'm not in a good situation because I don't have a clear picture and I'm going crazy on it. In addition, with the new insurance I now have a 1K deductible which I need to add to the cost in order to do the test on my daughter to see if she does needs surgery and then I have to figure out how much from the surgery I need to put from my pocket.... her father is out of the pic so all expenses fall on me.

That's where I'm at right now... not as settle as I would like to be yet, but certainly heading that way. I hope to neutralized the situation on my 4th month in this job...after all is higher pay so I will be OK, I just hit a temporary bump as always..

Ohh... and yes if wondering, I'm not a big expender... thrifstores are my favorite places, and right now I have no need to get anything else, so I just buy food or necesarry items, nothing else. I tend to stay home a lot to save on gas too. A pretty routine life for now .. from home to work and vice-versa.

[Isolation]

I'm not financially independent of my parents yet–I just started college this year and I've never had a job–

man, I thought I was the only one. :embarassed:
I'm almost 22 and I've never had a job. I once got a job -very competitive one at that- but my dad would not allow my to do it. I was so pissed. :angry:

About personal budget... I tend to be ok with my money... except when I am around books. (bookstores, ebay, amazon.) bibliomania? Perhaps.

[INTJoe]

PRBori, it sounds like you really need to get things together. How many kids are you taking care of?

Daycare is over $800/month? Rent is $1600!?! Isn't there any way you can lower these? At least rent? Where do you live, and how many bedrooms/sq. ft. do you have? These are huge leaks in your budget that are killing you.

[dissident]

I'd be careful about defaulting on student loans, morality aside. Not only are they hard to get out of, defaulting will be a mark against your credit history, which more and more employers check. That's not just for jobs involving money; more employers are seeing a link between job candidates' trustworthiness / reliability and credit history. Marks against your credit history also will appear in credit checks when you try to rent an apartment, buy a car or home, get a credit card, for instance. Even if you're approved for more credit, you'll probably pay higher interest rates. I don't know whether insurance companies went through with this, but there was talk of them screening financial histories of customers because they saw a correlation between people with poor financial records and the likelihood of questionable insurance claims. On that premise, they would decline you coverage or charge you more. So be aware of the consequences if you consider defaulting.

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credit history is wiped clean after 7 years. If the student loan debt is excessively high, say more then $50,000, it might be worth it.

You are right though. Doing this would require suspending what most would consider a "normal life" such as buying a house for at least a time... though usually you can get back on your feet again much more quickly then 7 years 2 or 3 and you'll start getting credit card offers again if done correctly... just google tricks on how to raise your FICO score. Start with a secured credit card from a bank and go from there (if you don't have a credit card already). Charge something to it every month, but don't pay it off in full... pay like 2/3 of it off, and leave a balance. Yes you'll have to eat some minor interest charges, but this builds credit fast.. as you are now "managing debt." (Do this after you have filed bankruptcy and wiped the slate clean.)

I haven't don't this personally, no.. I skipped the college route altogether.. I'm as introverted as they come and didn't have the drive nor the social skills nor the interest in the world itself to slave away in the material, white collar world.

[PRBori]

PRBori, it sounds like you really need to get things together. How many kids are you taking care of?

Daycare is over $800/month? Rent is $1600!?! Isn't there any way you can lower these? At least rent? Where do you live, and how many bedrooms/sq. ft. do you have? These are huge leaks in your budget that are killing you.

I'm working on it. The job transition is what really kill me, otherwise I would had my 2K+ savings in place.

Anyway, I have a 3 year old and her daycare is the cheapest one in the area, not to mention the best. I know some parents will say it's cheaper to leave her with someone who takes care of kids at home, but my peace of mind while I'm working is essential. I don't trust many people and previous experiences where not that good. Besides I want my daughter to excel in school and be ahead of the pack not behind. She has being around 3 languages (English, Spanish, and Arabic) so her speech is not the best yet. She will be 4 in August so I need to make sure that's taken care off.

Rent is actually $1300, plus water and electricity. I'm limiting electricity by keeping it OFF down to $60-70, water is about $35. Of course it can exceed the previous amount in winter but I do try my best to keep it down.

I live in VA, Fairfax County, I have a 2bed/2bath apartment. The cheapest in the area for a 1bed/1bath is 1K, those that are lower go by income and I surpass their income requirement. In addition, all utilities are separate as well. And if they don't have an income limit, they are in a bad area and as a single mom I have no desire to give up security because I do get home late sometimes. I also consider education for my daughter. Right now she just got accepted into a county program to help her with her speech and that to me is essential. I know I like to pay a little more to feel secure and provide my daughter a good education.

If things go accordingly, by the 4th month I will be OK, I'll have the extra money I lost. In addition, I have a few part-time jobs in wait, one will pay over $35/hr doing the same things I"m doing from home and the other one... I'm not sure yet, just got the call yesterday, so I need to see what it is first before I consider it. Again, they are jobs I can do from home that surpass the $35/hr and will not required a lot of my time.

And just in case, no I won't need to pay for daycare while I'm working on them. I can do them from home while my sweetie pie is asleep. This is as I call it a small bump.

[mkay]

credit history is wiped clean after 7 years. If the student loan debt is excessively high, say more then $50,000, it might be worth it.

You are right though. Doing this would require suspending what most would consider a "normal life" such as buying a house for at least a time... though usually you can get back on your feet again much more quickly then 7 years 2 or 3 and you'll start getting credit card offers again if done correctly... just google tricks on how to raise your FICO score. Start with a secured credit card from a bank and go from there (if you don't have a credit card already). Charge something to it every month, but don't pay it off in full... pay like 2/3 of it off, and leave a balance. Yes you'll have to eat some minor interest charges, but this builds credit fast.. as you are now "managing debt." (Do this after you have filed bankruptcy and wiped the slate clean.)

I haven't don't this personally, no.. I skipped the college route altogether.. I'm as introverted as they come and didn't have the drive nor the social skills nor the interest in the world itself to slave away in the material, white collar world.

These don't sound like good choices to me. As the link says, you'd do all this and they'd probably still hunt you down for what you owe. If you want to "work the system" for money, dodging student loan debt is not a good choice. If dodging debt is not a morality issue, there are more enriching ways to rip off the system as a whole.

[notoppings]

Is that, or has that typically been, bothersome for you? What I'm getting at (and these are more Dave Ramsey's words), is that instead of having the attitude of "You spend yours, I'll spend mine", in a marriage, it should be "Let's put our money together and work toward 1 goal"...and then when your partner spends lavishly, you have the ability to go to them and say "Hey, I don't think we can afford this."

While this might start a lot of fights, it keeps everyone on the same page, and working toward 1 goal, which is probably best in the long-run. A lot of financial problems in marriages aren't due to lack of money, but they are due to (usually) the wife resenting her husband for his poor spending habits and apathy for their financial goals. Many times the husband has the attitude "I earn $10K more per year so that means I get $10K worth of toys, so that everything is fair."

Of course I'm painting with a broad stroke here.

It wouldn't be so bad if my partners had a goal but I always seem to hook up with people that think whats mine is mine and yours is mine also. They seem to see joint accounts as more money for them to spend.

An example: I went to the hospital to have a surgery, while I was in the hospital my partner decided to take a friend of ours to San Fransisco to get a tattoo. So instead of visiting me in the recovery he decides it's a good time to spend more money. He can't seem to get it in his head that just because money is there doesn't mean you need to spend it. Thats his mind set I'm in the hospital getting a big bill and instead of budgeting he decides he might as well get rid of more money. I'm no longer with him, he just didn't have any goals. Most of the people I hook up with are like that, thats why I don't co-mingle funds anymore.

[PRBori]

It wouldn't be so bad if my partners had a goal but I always seem to hook up with people that think whats mine is mine and yours is mine also. They seem to see joint accounts as more money for them to spend.

An example: I went to the hospital to have a surgery, while I was in the hospital my partner decided to take a friend of ours to San Fransisco to get a tattoo. So instead of visiting me in the recovery he decides it's a good time to spend more money. He can't seem to get it in his head that just because money is there doesn't mean you need to spend it. Thats his mind set I'm in the hospital getting a big bill and instead of budgeting he decides he might as well get rid of more money. I'm no longer with him, he just didn't have any goals. Most of the people I hook up with are like that, thats why I don't co-mingle funds anymore.


That's sad... it reminds me of my ex. While I was pregnant working full-time he decided to quit his fulltime job and take over my pay. He wouldn't even give me money to take care of my medical expenses for the pregnancy and at the time I had no health insurance.

Not to mention he used to take vacation every single year for 1+ month to his country and empty my account. As long as he knew I had money saved, he would take it or fight for it and I had no desire to argue much so I let him have it. Nevertheless that's another of the many reasons he is my ex and I'm now trying to re-coupe from the hit I got. This days I trust nobody and in my next relationship it better be 50/50 and he must work as hard as I am and have a clear goal in mind... otherwise there is no way in hell I would make the same mistake twice. I rather live on my own and have a good life than have a leech on my back slowing me down.

[INTJoe]

Man, no offense, but those guys y'all have dated sound like absolute trashy dirtballs. The good news is they're no longer a part of your life.

Now I know why fathers hate the idea of their daughters picking a suitor. So many scummy guys out there. I'm going to beat my daughter up if she dates guys like these, because I care about her safety and well-being.

[INTJoe]

credit history is wiped clean after 7 years. If the student loan debt is excessively high, say more then $50,000, it might be worth it.

start getting credit card offers again if done correctly... just google tricks on how to raise your FICO score. Start with a secured credit card from a bank and go from there. Charge something to it every month, but don't pay it off in full... pay like 2/3 of it off, and leave a balance. Yes you'll have to eat some minor interest charges, but this builds credit fast.. as you are now "managing debt."

You're effectively "buying" credit, by paying finance charges. Why not just wane off of credit entirely, and learn to pay for what you buy? Stop trying to figure out how to beat the system, and learn responsible money-management.

FICO score is an "I love debt" score. When applying for a loan, FICO isn't the only criterion. They also take into account your income, and debt-to-income ratio, as well as equity position (downpayment).

So, when going to buy a house, if you've got a low FICO, but a good income, and little debt, and are willing to put a good downpayment, then you shouldn't have difficulty getting a mortgage.

I think putting a huge downpayment goes a long way. It tells the bank that you are making a serious commitment, and are investing in a great deal of the equity right off the bat.

Who would you rather loan to? Someone with an awesome FICO score, but no downpayment, or someone with a sub-par FICO who puts 25% down?

Dave Ramsey never borrows money, and supposedly has "no" FICO score, so he cannot rent an apartment, but he could buy the entire complex with cash.

[PRBori]

Man, no offense, but those guys y'all have dated sound like absolute trashy dirtballs. The good news is they're no longer a part of your life.

trashy dirtballs is putting it nicely... more like a leech and yes thank God they are out of our lives...



Now I know why fathers hate the idea of their daughters picking a suitor. So many scummy guys out there. I'm going to beat my daughter up if she dates guys like these, because I care about her safety and well-being.

Something you must know is that they tend to show a different type before hand that you would probably be so impress with them..., my ex used to work two jobs full-time and hardly had time off... his true self didn't show up until I got pregnant... that's when he showed his true colors... the moment I got a job making big money.. he quit, and the moment I got pregnant the only words from his mouth were "You are 100% responsible for that child" and honestly that's how it was then and that's how it is now. That's why I give him zero rights to see his daughter... the moment he gets near me and her I will put a restraining order against him and if I could, send him to jail... for that's where he should really be at... anyway...

[notoppings]

Man, no offense, but those guys y'all have dated sound like absolute trashy dirtballs. The good news is they're no longer a part of your life.

Now I know why fathers hate the idea of their daughters picking a suitor. So many scummy guys out there. I'm going to beat my daughter up if she dates guys like these, because I care about her safety and well-being.

Yes I agree they were dirtballs or leaches either way I hope you can find a way to help influence your daughters choices in suitors without upsetting her I'm sure as a male you will be able to see into those little teenage zoomers out for the big S and not out for a relationship with your daughter.

I don't envy any of you parents.

Now that I'm older I don't fall for them anymore, I hope.

[mkay]

I think putting a huge downpayment goes a long way. It tells the bank that you are making a serious commitment, and are investing in a great deal of the equity right off the bat.

Who would you rather loan to? Someone with an awesome FICO score, but no downpayment, or someone with a sub-par FICO who puts 25% down?

Dave Ramsey never borrows money, and supposedly has "no" FICO score, so he cannot rent an apartment, but he could buy the entire complex with cash.

I hear what you're saying. But it doesn't pay to have no credit history. My mother -- old-school immigrant with no debt or credit history -- had trouble just getting simple things done even paying cash for real estate. The system is set up so they think there's something weird about paying with cash and having no credit history -- like you're a money-launderer or such.

And depending on your financial situation, it often makes more sense to leverage on real estate than to pay cash, so lots of people borrow even when they can afford otherwise. I've thought about paying off my house now, but I'd rather have my money working for me.

You can make a big down payment and they'll loan you money, of course. But your interest rate is still dependent on your credit history.

[Henry]

Something you must know is that they tend to show a different type before hand that you would probably be so impress with them..., my ex used to work two jobs full-time and hardly had time off... his true self didn't show up until I got pregnant... that's when he showed his true colors... the moment I got a job making big money.. he quit, and the moment I got pregnant the only words from his mouth were "You are 100% responsible for that child" and honestly that's how it was then and that's how it is now. That's why I give him zero rights to see his daughter... the moment he gets near me and her I will put a restraining order against him and if I could, send him to jail... for that's where he should really be at... anyway...

Just a thought but you've basically commoditized him here - he stopped being economically useful, so you divorced him and won't let him see his child. And think he should go to jail.

[PRBori]

Just a thought but you've basically commoditized him here - he stopped being economically useful, so you divorced him and won't let him see his child. And think he should go to jail.

Unfortunedly there is a lot more to it than just what's mention here.... I've being happily divorce for two years... but I cannot stand seeing his face at all for many other reasons outside of the financial area. And he was never economically useful... not sure where you got that from...he had another idea on mind which he got to acomplish.


The financial arena is very small compare to everything else I put up with.. he is lucky that I didn't send him back to his country. The price he is paying now is very small compare to what he did simply because I wouldn't allow him to take her to his country. Another of his friends got deported after 6 years of marriage for similar reasons.
By the way... what's here he already knows. He had a choice to pay all the fees for his daugher and have the right to see her, but not the right to take her to his country or keep his money and leave us alone. He choose to keep his money and let go of his daughter. That was the exact type of choice I expected him to take for he never care about her since day one.

[Caucus]

I keep to a budget. Nothing is written down. It's all processed as a mental picture. I have a series of weekly automatic payments set up. They cover my rent, bills and savings. I have a savings, spending, and "transition" account. Everyday I transfer just enough money for the day from my transition into my savings account. Any money left at the end of the week goes into savings.

[Max T]

There's a lot of talk about caring for our credit ratings here- I must be on a different planet when it comes to budgeting/personal finance:

- First off, I recognise that the government, banks and other companies do not want me to save and invest. No organisation wants a saving and investing mentality whatsoever (apart from a pension co.).
- I don't use credit cards, loans, hire purchase etc. They're merely facilities to have now what you cannot afford. I'm old school, paying outright with cash.
- Also old school in reducing materialistic greed. You see, every gadget we buy results in more tax paid, more insurance cost, greater depreciation and high interest rates to finance the purchase. Sure, reducing materialism is hard- it's like a narcotic- but relationships, experiences and knowledge are surely more valuable.
- Immediately when the paycheck goes in, 20% is automatically whisked off to the investing side and I live on the remainder. From the 20% of net income saved (INTJoe- I'm in awe at 60% savings!), it is invested at c. 20%+ p.a. To protect against debt on monthly outgoings, I have a slush fund of $1.5k. To protect the investments against a sudden liquidation of assets, I have an emergency fund of $2k.

The result is no sales calls, no mailshots from banks and absolutely nil concern about credit rating. I'm off capitalisms' radar (no-one's interested in me, right) but using it to advantage by getting others indebted (stocks 'n' bonds).

My financial perspective is from before the 1950s and summed as "experiences and relationships over materialism, debt is a bad word, live within your means, never dip into your saved capital and slowly compound for the long-term". A result of a poor childhood and great parenting and that's not a contradiction! ('though it's paradoxical that they weren't wealthy, but then generational differences partly explain why no family is worth a $trillion+).

So people see the old car and small flat but not the plan to retire early. Life is stress free and just gets better and better IF you can switch off from the Joneses.
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[Seppuku Savant]

I most definitely have a budget. I stick by it fairly well. I prefer to save money. You never know when an emergency is going to come up. I like to be prepared.

[Monte314]

I don't even know for sure how much I make... my wife handles all the finances. The house and car are paid for, and I take out $280/week as "mad money". I'd rather not think about money at all.

[Dave C C]

We live on what one of us makes, and save the other paycheck. I do the investing she pays the bills. It adds up over time.

[jadefalcon]

It seems like maybe it's a INTJ thing to save or not overspend. It also sounds as if those who stay at home with heir parents are also preparing right. Good patterns all around.



$50 cap a paycheck on goodies- can be anything- hobby stuff, etc. $20 on food a paycheck, and the rest is saved or spent on gasoline. I wrap all spare change every season (4 times a year) and redeposit into my account.

[Lupin]

Invested heavily in fixed/solid things in order to protect the capital for my retirement. Would like to try my hand with more risky investments in a few years but for the moment I can do no more. Cashflow and liquidity are my answers for the rest of it and for the forseeable future.

As for a budget, I'm not really sure what that gives me apart from confines. If there isn't enough to support what I want to do then I have to find it somewhere....extra work is still a possibility though committing to paper exactly what I want out of life has been the most effective at cutting out unnecessary expenditure (Mr Kipling excepted :)). Relationships, music, art, physical activities and education range in levels of expense but real consumerism falls to one side in this case.

Cutting back on life's adventures (have lived in 3 countries since 1999 due to work) and clearing what I don't need and can't use in this one lifetime of mine, are becoming quite my mantra for a re-launch. Tough but it's working (slowly ;).

[Sara27]

I definately budget my money. I always budget high and spend low. This alows me to save. I grew up poor, so there's always a voice in the back of my mind warning me about poverty. I hate living paycheck-to-paycheck, but have doing so after a financial blow. Work more and spend less is my current motto.

[xeeeej]

I have a budget, but mostly due to the fact that I love playing with Excel spreadsheets. I rarely look at or am concerned with it. I am frugal with my money in certain ways, and I do save some every month (not 20% and definitely not 60%).

However, I enjoy having nice things. I have a fancy sports car that puts a smile on my face every time I drive it. Is that materialistic greed? Perhaps. But I don't mind spending money on things I am passionate about.

[Zedicus]

You're effectively "buying" credit, by paying finance charges. Why not just wane off of credit entirely, and learn to pay for what you buy? Stop trying to figure out how to beat the system, and learn responsible money-management.

FICO score is an "I love debt" score. When applying for a loan, FICO isn't the only criterion. They also take into account your income, and debt-to-income ratio, as well as equity position (downpayment).

So, when going to buy a house, if you've got a low FICO, but a good income, and little debt, and are willing to put a good downpayment, then you shouldn't have difficulty getting a mortgage.

I think putting a huge downpayment goes a long way. It tells the bank that you are making a serious commitment, and are investing in a great deal of the equity right off the bat.

Who would you rather loan to? Someone with an awesome FICO score, but no downpayment, or someone with a sub-par FICO who puts 25% down?

Dave Ramsey never borrows money, and supposedly has "no" FICO score, so he cannot rent an apartment, but he could buy the entire complex with cash.


I have to say I agree with want INTJoe is saying, If I had half the knowledge about money that I do now when I was in my 20's life would be so much better.

I have read Dave Ramsey's book's and listen to him on the radio often, and I have to say I agree with him on just about everything, etc religion of course. Anyone that is just starting working or is in college, should visit look him up because there are a couple of examples that he gives that some real insight into how you can become financially independant a lot easier then you would think.

One example that really hit home for me was 2 19 year olds, one saved 2000 a year for 6 years invested at an average 12% then stopped investing. The other started investing when they were 27, 2000 a year at 12% until 65.

The question is who retired with more money? Answer the person who invested only 12000.

As far as needing a FICO score, you actually don't. Its a little harder buut you can still get conventional mortgages it just has to be by a company that does manual underwriting.