A way I like to stay on budget is buying gift cards for the stores I frequent. Like if I put $50 on a gift card for groceries, I won't spend any more than that. This helps me to live within my means and to actually look at what I want vs. what I need if I go over at the checkout line.
What a great idea, Stewdippin : Fun Nerdy Videos Every Week! That reminds me: When I was in college, I would often get super stressed, so I allotted myself a tiny bit of "fun money." I think it was $10-20 per week, and I'd always get it at the beginning of every month *in cash* to keep myself honest. Anyway, it was a huge help. Thanks as always for the great comment! - Mike
A library card is one of the biggest budget savers ever. If you're responsible about returning items on time you have a never ending supply of FREE books, movies, magazines, ebooks etc. You've already paid for it through taxes, why not take advantage of it?
HennyMusgrove "If you're responsible about returning items...." A key library factor I'm lacking. I am so bad at returning books, it's easier for me to just buy them used on Amazon or wait for them on Paperback Swap. :)
It's alluded to in the video, but it's worth saying explicitly; when you first make a budget, make the budget based on how you spend money now, not how you wish you spent money. Only once you've figured out your current spending should you start trying to cut how much you spend in a category. Otherwise, you're likely to accidentally give yourself unreasonably difficult goals and end up just giving up.
Budgeting tip on groceries- The "Unit Price" model of grocery shopping is often recommended. Look at the individual cost per unit, as opposed to the overall price (the amounts are often right next to each other on the shelf). You might find that the big pack of toilet paper cost less per role than the small package, and you'll end up saving money in the long run. Be careful with this when it comes to perishables though. I had a roommate who would always buy a gallon of milk, as it was cheaper that way, but she rarely got through half by the time it expired. It would have been a lot more affordable (and less wasteful!) if she would have just bought a half gallon of milk. So unit price is a powerful tool, but also pay attention to your own consumption habits. Throwing out more food then you're eating doesn't help anyone!
That's a really good point! I usually don't shop at grocery stores that don't have the price per unit on the price sign. I've learned my brain is really bad at estimating this.
Alice Glendarroch bring a smartphone and do some math! Also if you keep track of prices for grocery items in a spreadsheet you can know when something is actually a good deal or not (that said...I don't have time or motivation to do tracking to that degree...but if you did you'd probably save money!)
I've figured out my weekly budget on "extras" (eating out, coffee, shows, etc) and take it out in cash. It's a lot easier to see what you've spent based on how much is left in your wallet instead of remembering what you've charged to your credit or debit cards
As someone who works in a bank, THANK YOU for this video. It's utterly astounding to me sometimes the amount of people who do not track their spending. Some people truly are clueless. I'm not talking about those who are just inexperienced and want to learn, I mean the people who have been through life long enough to have had the opportunity to figure out their own budgeting techniques and has never taken the initiative to learn. They exist and they are many. I really wish there were more programs in school that cover finances better.
Important! Don't forget that there's "hypervariable" expenses - those costs which may not even occur every month. Things like gifts, getting oil changed, traveling for the holidays. These *are not* part of your "emergency fund". Your emergency fund is ideally the "oh no, I lost my job, my apartment, my car, everything...but hey, I've got a few months saved up, so I'm safe!"
Physically writing down what is coming in and going out is a great start and could be an eye opener. I found that having a goal to save for is a good tip instead of saving money just to save money which is boring and will probably fail.
I use a 50-30-20 Plan. 50% is my needs (rent, food, utilities, etc.), 30% is my wants (movies, video games, dining out), and 20% is my debt repayment and savings (paying my student loan bill then putting the difference away).
Most grocery shops (at least here in Norway) reduce their prices on certain products each week. If those are things you use and that you can store easily (tinned foods are awesome), buy them in bulk when they're cheap.
Biggest expense I've seen as a mid-twenties that I wasn't expecting: laundry... Working several jobs between two people that have dress codes for each makes for a lot of laundry.
I haven't tried Mint, but I'm really liking You Need A Budget. It really encourages and makes it easy to take a more active hand in getting your finances on track, and helps you think and plan long-term. It's not free, but it's a one-time $60 cost rather than a subscription, and it offers a 34-day free trial.
DanThePropMan Yes!!! YNAB FTW! :) They totally offer a 30-day free trial. Their program is the closest thing I've found to how I used to budget by hand. I thought no program could ever replace my pen and paper, but I happily shelled out the $60 measly dollars for YNAB. It's worth it for the peace of mind that I'm getting everything correct and no longer making as many human errors!
I round everything to the fives. In my spreadsheet I round all income down and all expenses up to the nearest five dollars. So instead of recording that I earned, say, $928.31, I just record $925, and instead of spending $6.77 as McD, I say I spent $10. Then don't look at your account, just at your tracking. At the end of the month I usually have at LEAST $20 extra.
Mike, I am TOTALLY with you on that at 4:08. I *HATED* that so much, especially since I could never sell them back for what I had paid for them, if I could sell them back at all.
That Blank Check reference was awesome! I loved that movie when I was a kid. I love Mint for my budgeting. It's automatic and I get a complete financial picture each month. I also put away a small amount each month ($25) into a separate savings account designated only for "fun splurge money." This way I don't have to feel guilty buying something if I have the money in my splurge account. Also, DO NOT put yourself in credit card debt. For the most part, it is completely avoidable by watching your expenses and if you don't have the money for something, don't buy it!
Guys this is one of the most useful videos to ever exist. I'll be moving out of in-campus accommodation at the end of this year and into a sharehouse which means SO MANY MORE BILLS. This is going to come in SO handy. Thanks, Emma!!
I haven't found that bringing my lunch to work really saves very much money. Maybe like $4 vs 5 or 6 for a cheap lunch out. It's worse if you're trying to eat healthy while eating out though. Meat and alcohol can be big portions of your food budget, so those are things to look at cutting if you want to save some money.
I guess it depends what you eat? A loaf of bread is like 2-4 dollars where I am. And that loaf will last me more than a week. And then the filling will probably cost no more than 10 dollars a week... So for me it is like 12-ish dollars a week vs. 30 dollars or more (where I live). So in a month that is an extra 72 dollars. In a year, I'm saving roughly between 800 to 900 dollars.
If you work in food service and make tips, it's helpful to set aside your tips for a specific expense. For example, my coworkers and I usually use our tips for food money. On an average day I only make about $7-10 of tips a day, but that's usually enough to get a cheap dinner or lunch for the day to supplement regular grocery shopping!
I've been waiting for this video so THANK YOU! Also I love the Blank Check reference. It makes me feel like I'm not too old to be watching these videos lol
You're never to old to learn how to adult. I'm fairly certain no one has that down correctly, all the adults are just pretending they know what they're doing. In the (paraphrased) words of Ze Frank to his (imaginary) daughter "sorry sweetie, I can't pretend to eat cake with you right now, I'm too busy pretending I know how to raise a child."
Stephanie Williams, haha, no, you are *definitely* not too old. One of my favorite things about *making* the videos is that I get the opportunity to learn (or relearn) the things as we teach them. So, if I'm not too old to make them, no way are you too old to watch them. :] Thanks for the comment! - Mike
I tracked every single dollar of my expenses 3 months ago and I gotta say it helped so much! I realised just how much money I wasted on that morning coffee/muffin run (not to mention probably also unhealthy). I had realised I was spending almost $150 on breakfast every month - that's $1800 a year!! I now brew my own coffee and make my own breakfast most days.
When I first started out on my own, it was difficult for me to categorize things because I would pretty much exclusively shop at wal-mart or target, where I could buy literally everything. I found it helpful to keep the receipt and colour code my purchases (green for food, purple for clothes etc) then I would add up the totals in a spreadsheet. It really helped me to see where in wal-mart my money was going. Before, if I spent $100 at wal-mart it would feel like i bought $90 in food and then I would constantly wonder where all the food went! When in reality, I was spending $40 on food and $60 on misc. items.
I do my grocery shopping for the following week split between Saturday and Sunday. The next week's ad usually comes out on Saturday, so you can compare sales and get the best of each week. Also, get with your store's rewards program to earn credit for stuff you already normally buy.
My circumstances have changed a lot in the past few months, but this video has given me the confidence to believe I can still budget, even with reduced means - thank you!
I have a change/cash jar I give myself a minimum I must put in it every paycheck (varying based on my PT job hours). I also throw all my change in there, and usually avoid using my change to "even out" the change I would receive from a transaction. I don't touch the jar unless I need something (food, dog food, bathroom essentials, etc.). And I always make sure that that money is always added back (rounded up at that).
College textbooks! I just got those! So, my college actually offers a lot of different ways to get them, and I got all the books I needed for this semester for about $150 (including my music books) because I bought digital copies and rented a lot of them instead of buying them, which saved me about 100 bucks. I would definitely recommend that other students look and see if they can rent books instead of buying them and look at digital versions, that can save a lot of money. As for budgeting otherwise, I took a personal finance course in high school that gave me a lot of similar information, so thank you Mike and Emma and all the other crew members for giving good information and helping me to adult.
Fun video! I am making a "to buy" list. Anytime I wish I could buy something for myself, I will write it down. That way, it's not really a "no", but a "later." I will look at the list later and see if there is anything I still really want or need and maybe purchase one or two things on the list. Then keep the list running for next month.
This is really good stuff! The one class I took in high school that I really liked and was really the only class that taught me life stuff was a finances video series done by Dave Ramsey. It's also cool to see that Amanda is writing very good How To Adult scripts!
from what i can tell from my parents, who are very successful at budgeting, coupons are a huge help. instead of buying just whatever you see, taking the time to look at discounts and coupons saves a lot in the long run.
Yeah, when I started university, I bought all the "mandatory" textbooks. In my last few years, I waited a week or two to see which ones I was likely to actually look at and only bought those. It saved me a ton of money. Also, when your classes are over, consider re-selling your textbooks, either through your campus bookstore, online or via flyers.
Super good advice: join a credit union. Not only will you get super good rates on loans and things, but they also often have free resources like financial counseling that you can take advantage of. Thanks to my financial counselor I finally have money in my savings account!
If you like to buy most of your produce at the market, go towards closing time (or even better, towards the end of the week) - prices of certain fruits and veggies drop significantly and you can actually save quite a lot per shopping trip.
You guys are heaven sent, wonderful. This helps so many so much, thank you guys so much! Definitely got DFTBA down! It really reassures me to know I'm not the only one struggling but also that there's such support for us.
When paying credit cards, round up the bill payment every month to an even amount. Then use the saved money to splurge after a few months... also works great for saving up for holiday shopping
Mint has been awesome for me- I obsessively check my finances so it's great to be able to track everything from my phone and see how I'm doing with my monthly budget.
I split my income before I do anything. 10% to charity, 40% to fixed expenses, 25% to savings split 50/50 between an emergency fund and retirement and 25% to flexible spending. Any extra in fixed expenses gets moved to my emergency fund. So far it's been working for me but this is also my first year with an income that supports this. I also use a separate checking account for all my bills, it makes things much easier for automatic drafts.
I take out $100 of "me money" each month for extras that I don't have in my budget - that Starbucks, cute top or new book are simply "me purchases." But when the cash is gone, it's gone. It's helped me eliminate the little purchases in my life.
I highly recomment "You Need a Budget", budgeting software similar to Mint but free for students. I used to budget using just a word document, and I could never keep track of everything, especially if I was saving up in a category, or if I overspent in one category and needed to 'pay myself back'. YNAB lets you do all that! A friend told me about it and I'm hooked. Also you can download the YNAB app on your smartphone (iPhone or Android) and it will sync with the full-blown computer version of your budget in YNAB.
Advice from a friend of mine:Take care of your teeth, brush them every day and don't drink soda all the time. He spent about 18000 DKK (not sure how much in USD) on fixing his teeth. He's now in debt.
From a real adult with real debit card problems on the mend: DON'T LIE TO YOURSELF. Thinking "I'll pay for this at the end of the month" is not enough. Think about all of your expenses and savings, think about whether you actually need it -whatever it is that you are purchasing,- or whether you can wait to have it later, and write it down so you don't forget about it, if you actually buy it. But seriously, don't go on shopping sprees with your credit card. It is kind of obvious, but nobody really tells you this... AND IT SHOULD BE WRITTEN LIKE EVERYWHERE!
I had a type-writer/word processor in my office. Funny thing: No-one wanted to touch the thing, so it was me who had to learn how to programme it, work it, and fix it. I needed to "fix it" rather often, because, obviously, with no-one knowing what they were doing on that infernal machine they started pressing the wrong buttons, changing the processor's language, activating other country's keyboard settings, etc. And then you - the lowest employee in the office - who is also unfamiliar with the new thing - sits there for an hour to try to figure out which random button your collegues mashed. And then the blame game starts. I have real love-hate relationship with this machine, because it can make your life easier ...... if no-one constantly throws a wrench in its gears. Kind of nostalgic to see it again, though. Aaaaah a secure income in an office. What a time that was.
You can save a ridiculous amount of money by shopping according to coupon matchup sites for your grocery stores, as well as freebie sites and rewards programs (some, like Shop Your Way Rewards for Kmart/Sears, allow you to get points every week without buying anything just with a click or two).
My dad also taught me to pay the bills, and after those are done you take what's left and you put half of whats left directly in the bank in a saving account. The rest is "me money" to spend on what you want. Do not touch the bank account unless absolutely neccassry. It's surprising how fast that 3 months can actually add up. (Actually, he taught me that you automatically put 50% in the bank immediately after receiving your paycheck, then pay bills and the rest is "me money" but I had to modify because I didn't make enough to cover my bills)
I have been watching a few videos and they're GREAT and I will be coming back for more! But it occurred to me just now that you (lady presenter, don't know your name) don't appear to be wearing makeup, or at least have natural makeup but you look WONDERFUL and your hair is really beautiful too! So that's nice, best wishes.
Katrina Eames Also, it taught me that Macintosh computers are very helpful for defrauding criminals of ill-gotten riches. Which is *super* useful in the real world. - Mike
The single most important thing about handling personal finances is to "pay yourself first." The first thing you do each time you get paid is set aside an amount appropriate to your income (usually 10%) and stick it into long term savings or investment. Only after that is done do you pay the fixed items (rent, etc) and last is the variable expenses (food, etc). If you find you have money left over at the end of every month, increase the percentage you pay yourself a bit to match. Some months when things are rough you'll probably have to immediately take the money right back out of savings after you put it in. But it's very important to put it in first anyway, because that is a habit that will make a huge difference in your relationship with money throughout your life.
Budgeting is a little hard for me because at my job it's an hourly pay and I never know if I will have more shifts one week or another, and shifts are very short. Does anyone have advice for budgeting in my situation?
Another suggestion, once you've sorted out your budget, is to gradually move (by saving up gradually) towards living on your previous month's income rather than living paycheck-to-paycheck. This way, if you make less money than you expected one week, you have the safety net of money from last month already there to help you out, and you'll know you'll have to cut back a little next month.
Miranda Loeber Great tip! This is an issue of cashflow, meaning how much money you have on hand at a given time. If you can save up enough to consistently have a month's worth of living expenses, it will feel less erratic.
Quite informative and helpful! as someone who only just recently started making money, I'm beginning to see how easy it is to lose track of where it's all going :/
Try setting up an account that is only accessible online (i.e. you cannot use your card to access it). Then in this account you put all your rent, utilities etc. Also, try going grocery shopping with cash and no card. Take the amount you want to spend (or think you are going to spend) plus $10 extra just in case. This way you can literally see how much money you have and how much you have spent.
The problem with the type of micromanaging budgeting portrayed in this video is that it is fucking overwhelming. Tracking your expenses, adjusting expenditures based on behavioral patterns, saving for treats, these behaviors, while empowering require a lot of will power to maintain. While this type of budgeting may be the ideal, very few people are Benjamin Franklin and have the requisite compulsive behavior to track their money to such a degree, or the discipline to change anything about it. A tiered system of budgeting is a lot better for most people. Track your fixed expenses first, those don't change and will give you the foundation for your budget (the most important part of any structure). Consider this money locked down, when you reach this happy minimum you can then consider anything else liquid money. This is the money you need to think about the most, or not at all as your preferences and situation dictate. Divide this money up into new tiers, opening a savings account funded by a fixed percentage or dollar amount of your gross income, that's a tier. Activities like hobbies or goal specific savings, that's a tier. Free spending money is also important, this is the top tier of your budget and thus the least important, this is a (preferably small) amount that you can spend however you like. Remember to also leave yourself open to adapt your budget. No plan ever stacks up to reality and being able to shave off some of you budget for emergencies or really important events is helpful and downright liberating. Just remember that with any budget you do not have unlimited funds and any money moved to one spot takes away from another. And hey if you are having a bad week, fuck all this nonsense and splurge.
I lol at your blank check reference because I remember that movie having no actual big moral story for the kid. It literally taught me nothing... Except what I might spend a cool mil on 8)
To save money on textbooks, especially if your profs are the kind that never use that $250 worth of crap they made you buy: 1) See if there are Kindle versions available for any/all of your books. 2) Get Amazon's free Kindle reader app. 3) DON'T BUY THE BOOKS. Bookmark the Kindle editions so you can find them quickly if you ever actually need them... but if your attendance is good, you probably won't. 4) Should dire need strike, THEN buy or rent whatever book need... but chances are you can leave at least half in your shopping cart forever.
Sort of a budgeting tip I guess: I typically don't eat out unless I'm eating with friends. That way it feels like more of a treat and I'm saving money.
What you don't see you don't miss. Take the money out of your account automatically when your direct deposit comes in and goes straight to savings. You can set this up at your bank/CU web site. I had it doing $40 a pay period. Never even missed it. A year later I had a nice rainy day fund.
If you have local market that sells fruits or vegetables 9 times out of 10 the produce will he fresher and cheaper also as you can usually ask but amount you arent forced to but a full bag of potatoes when you only need 5. Not only that but as you get to know the owner you are likely to get even better deals as they want to clear the stall by the end of the day. For example i bought a set 3 of bell peppers the other day the guy on the stall gave me an open pack with 2 peppers for free as some one else had only wanted the one pepper.
Even the loose change bin is nice too, or putting some money aside to save slowly at a time. It build up. Plus, I found a place that takes all my loose change and converts it into cash for me for FREE with a certain machine. What? No rounding up the them into paper rolls? That's right!!! Dave Ramsey is a good resource too. Stay away from debt! Another good motto from Albert Mensha that I heard at a conference is pay now and play later, rather than too much of the opposite. Loving this channel. =)
Once you get into your major more (especially in a smaller school) you can learn what some professors teaching habits are. I.e. they don't use books all that often, or at all, and I honestly ended up being completely fine just skipping the bookstore for those classes. You'll be totally fine. Also, look at textbook saving sites like chegg.com for when you absolutely must buy the books, and you can save literally hundreds of dollars.
I've found that as I get older my variable expenses are growing more and more frivolous, and I'm CONSTANTLY feeling the sting of buyer's remorse. I slap myself every time.
Keep in mind that rent/mortgage and food are generally the two biggest costs monthly (with the exception of medical bills, for those with physical or mental illnesses). Rent is not something you can easily cut costs on, but food definitely is, and can make a huge impact on your budget if you find yourself spending more than you make each month!
When I go and get something small from a store that's under $5 like a drink, snack or lunch I put the change in a jar. I already saved $7 from this past week. Then again, I'm just a jobless highschool student with a mom that lets them keep the change, it might be different for other people.
I find one thing that really helps is only going out to eat when you're going with friends. Also make sure you have meals that are easy to make at home so you won't use that as an excuse to go out.
Jona Kalinka High-five. My wife and I sat down very early in our marriage and asked ourselves a bunch of different questions about what budgeting/having control of money meant to us (i.e., time, freedom, less stress, etc.). From there, we reverse-engineered how to make our spending choices reflect our values. IIRC, we used a book called SMART COUPLES FINISH RICH by David Bach. I'm not a financial advisor, but I hearted that book and frequently recommend it to friends. Thanks for the comment! Good luck with everything! :] - Mike
I find debit/credit card transactions easier to track, but they also make me spend more money because there's something less 'real' about just punching in a pin. If I have to actually hand over cash I tend to think about it more.
If you find that you go through dollar bills and coins too quickly, try to keep as much of your cash as possible in larger bills. A dollar here or there doesn't seem like a big deal, but it can really add up, and you'll probably think a bit harder if you have to break a twenty in order to make a small purchase.
Mint messed me up, I was signed up with Experian and I didn't even know I was and they kept taking money from me. So I cancelled everything. Just watch out when you sign up for Mint, just give you a heads up.
Don't forget periodic expenses. I only pay auto insurance twice a year, garbage once a quarter and auto registration and car tax (Yea Virginia) once a year. If you base your budget on a month where you pay none of these expenses, you are in trouble from the get go. If you pay out for your income taxes each year, that is another payment that can throw your budget off. You also might want to make the month you keep data on a 31 day month. Honestly, you will probably pay out more money that month than in February. If you get paid weekly or every other week, take that into account as well; you will get more money in a month where you get paid three times as opposed to a month where you only get paid twice. Possibly the best way to go is an annual estimate of your income and expenses, but actually waiting a year to total up all your income and outgo isn't practical. The best you can do is to treat any more than once a month payouts as something to save for monthly, putting aside a monthly "payment" to collect until you actually pay the bill.
When I was in the service, every paycheck I would automatically deduct a certain amount of money to go into my savings before anything else. Then I paid for necessities. This money was later to be used to help pay for college. If you have something in particular that you're saving for, this might be helpful. Also, common sense stuff probably but always get stuff you need used, if possible, or borrow. Frequent your local thrift shop(s) often.
good work. self control is not my strong point so I pay my rent and bills as soon as the money hits my account and have a second account set up that I transfer money into right away, then use that money for doctors visits and bills that can't be paid right away. what's left over I vaguely think of as "food and stuff"
Science text books! Oh, you need to take microbio? Give me 250 dollars! That stuff is even expensive on Amazon. The grad school I applied to has the average cost of books in the tuition, and it's awesome.
*_tip:_* when budgeting, round the prices up so that you always end up with a _higher_ number. e.g. coffee costs $5.49? put it down as $10. toothpaste costs $2.89? put it down as $5. just try to overestimate as much as possible, though if i have learned anything, anything _at all_, it is that one can never _truly_ overestimate when budgeting. nuh-uh, _nevozmozhno_.
I've decided my bank account into three. So I have one account for saving which I take out each month (roughly 30% of my salary) one account that I pay all my bills/rent and so on. And one account for spending.
The automatic savings withdrawal is a wonderful way to save. I speak from a long career with this feature in my budget. I will retire with less fear than many. It helped me be stable during the recession, and helped me not be afraid to budget like the early days until I found the next job. If you pay yourself first and juggle what is left to spend with thrifty habits, it's funny how it finally works out ok.
Agreed! I've been automatically withdrawing roughly 10% of every paycheque since my first part-time job when I was 16. (even when 10% of my cheque in the beginning was like $20 lol) It really does add up over time and now I make a lot more and can afford to contribute more. I now have a huge savings that I can use to partially invest, partially save for retirement and partially act as emergency fund!
Justineisftw It's where you tell your bank to set a given interval (most people do monthly) to automatically transfer a given amount of money (for example $100) from your daily bank account to a savings account - which is usually an account that gives you higher interest, so you can accumulate more money over time.
Yes, or perhaps your job will offer a 401k, 403b, ira, or might even do the automatic deposit into your savings account, no need to make sure the money will be there for the monthly deposit, it goes there first, before you start to spend.
i save my coins in a pile, and then go to a coinstar like machine either to decide to get a gift card for my self and that would how much I am allowed to spend at itunes/B&N/amazon for two-three months and repeat agin. I always find lots of coins and it feels like a treat to myself when I get these gift cards from coins and a way to monitor how and what I am spending at online.
So, honestly, I made a budget and I came up with my husband and I spend more then we make, but we're not going into debt. (We are slowly eroding our savings, overall, though.) And I got frustrated and gave up. I should try tracking all of our expensive for a month, that might be a better place to start. Our income is variable, though...
A way I like to stay on budget is buying gift cards for the stores I frequent. Like if I put $50 on a gift card for groceries, I won't spend any more than that. This helps me to live within my means and to actually look at what I want vs. what I need if I go over at the checkout line.
I never thought about that! That's a great idea to control shopping when bored habits. That and leave your credit card at home.
Dude, that's an awesome idea!
That's a great idea but don't they charge a fee for activating a gift card at most places?
Nox Field
Not to my knowledge. I've never had to pay anymore than the amount I put on the card.
What a great idea, Stewdippin : Fun Nerdy Videos Every Week!
That reminds me: When I was in college, I would often get super stressed, so I allotted myself a tiny bit of "fun money." I think it was $10-20 per week, and I'd always get it at the beginning of every month *in cash* to keep myself honest. Anyway, it was a huge help.
Thanks as always for the great comment!
- Mike
A library card is one of the biggest budget savers ever. If you're responsible about returning items on time you have a never ending supply of FREE books, movies, magazines, ebooks etc. You've already paid for it through taxes, why not take advantage of it?
HennyMusgrove YES. THIS.
- Mike
sometimes you can even find your textbooks there! it's worth a shot to look
I concur!
I dearly wish public libraries were more common here in the Philippines :(
HennyMusgrove "If you're responsible about returning items...." A key library factor I'm lacking. I am so bad at returning books, it's easier for me to just buy them used on Amazon or wait for them on Paperback Swap. :)
It's alluded to in the video, but it's worth saying explicitly; when you first make a budget, make the budget based on how you spend money now, not how you wish you spent money. Only once you've figured out your current spending should you start trying to cut how much you spend in a category.
Otherwise, you're likely to accidentally give yourself unreasonably difficult goals and end up just giving up.
Budgeting tip on groceries- The "Unit Price" model of grocery shopping is often recommended. Look at the individual cost per unit, as opposed to the overall price (the amounts are often right next to each other on the shelf). You might find that the big pack of toilet paper cost less per role than the small package, and you'll end up saving money in the long run. Be careful with this when it comes to perishables though. I had a roommate who would always buy a gallon of milk, as it was cheaper that way, but she rarely got through half by the time it expired. It would have been a lot more affordable (and less wasteful!) if she would have just bought a half gallon of milk.
So unit price is a powerful tool, but also pay attention to your own consumption habits. Throwing out more food then you're eating doesn't help anyone!
That's a really good point! I usually don't shop at grocery stores that don't have the price per unit on the price sign. I've learned my brain is really bad at estimating this.
Alice Glendarroch bring a smartphone and do some math! Also if you keep track of prices for grocery items in a spreadsheet you can know when something is actually a good deal or not (that said...I don't have time or motivation to do tracking to that degree...but if you did you'd probably save money!)
I've figured out my weekly budget on "extras" (eating out, coffee, shows, etc) and take it out in cash. It's a lot easier to see what you've spent based on how much is left in your wallet instead of remembering what you've charged to your credit or debit cards
I did this same thing! Huzzah! :D
- Mike
As someone who works in a bank, THANK YOU for this video. It's utterly astounding to me sometimes the amount of people who do not track their spending. Some people truly are clueless. I'm not talking about those who are just inexperienced and want to learn, I mean the people who have been through life long enough to have had the opportunity to figure out their own budgeting techniques and has never taken the initiative to learn. They exist and they are many. I really wish there were more programs in school that cover finances better.
Important! Don't forget that there's "hypervariable" expenses - those costs which may not even occur every month. Things like gifts, getting oil changed, traveling for the holidays. These *are not* part of your "emergency fund". Your emergency fund is ideally the "oh no, I lost my job, my apartment, my car, everything...but hey, I've got a few months saved up, so I'm safe!"
Physically writing down what is coming in and going out is a great start and could be an eye opener. I found that having a goal to save for is a good tip instead of saving money just to save money which is boring and will probably fail.
I use a 50-30-20 Plan. 50% is my needs (rent, food, utilities, etc.), 30% is my wants (movies, video games, dining out), and 20% is my debt repayment and savings (paying my student loan bill then putting the difference away).
Most grocery shops (at least here in Norway) reduce their prices on certain products each week. If those are things you use and that you can store easily (tinned foods are awesome), buy them in bulk when they're cheap.
Biggest expense I've seen as a mid-twenties that I wasn't expecting: laundry... Working several jobs between two people that have dress codes for each makes for a lot of laundry.
I haven't tried Mint, but I'm really liking You Need A Budget. It really encourages and makes it easy to take a more active hand in getting your finances on track, and helps you think and plan long-term. It's not free, but it's a one-time $60 cost rather than a subscription, and it offers a 34-day free trial.
DanThePropMan Yes!!! YNAB FTW! :) They totally offer a 30-day free trial. Their program is the closest thing I've found to how I used to budget by hand. I thought no program could ever replace my pen and paper, but I happily shelled out the $60 measly dollars for YNAB. It's worth it for the peace of mind that I'm getting everything correct and no longer making as many human errors!
I round everything to the fives. In my spreadsheet I round all income down and all expenses up to the nearest five dollars. So instead of recording that I earned, say, $928.31, I just record $925, and instead of spending $6.77 as McD, I say I spent $10.
Then don't look at your account, just at your tracking. At the end of the month I usually have at LEAST $20 extra.
Mike, I am TOTALLY with you on that at 4:08. I *HATED* that so much, especially since I could never sell them back for what I had paid for them, if I could sell them back at all.
That Blank Check reference was awesome! I loved that movie when I was a kid. I love Mint for my budgeting. It's automatic and I get a complete financial picture each month. I also put away a small amount each month ($25) into a separate savings account designated only for "fun splurge money." This way I don't have to feel guilty buying something if I have the money in my splurge account. Also, DO NOT put yourself in credit card debt. For the most part, it is completely avoidable by watching your expenses and if you don't have the money for something, don't buy it!
Guys this is one of the most useful videos to ever exist. I'll be moving out of in-campus accommodation at the end of this year and into a sharehouse which means SO MANY MORE BILLS. This is going to come in SO handy. Thanks, Emma!!
I haven't found that bringing my lunch to work really saves very much money. Maybe like $4 vs 5 or 6 for a cheap lunch out. It's worse if you're trying to eat healthy while eating out though. Meat and alcohol can be big portions of your food budget, so those are things to look at cutting if you want to save some money.
I guess it depends what you eat? A loaf of bread is like 2-4 dollars where I am. And that loaf will last me more than a week. And then the filling will probably cost no more than 10 dollars a week... So for me it is like 12-ish dollars a week vs. 30 dollars or more (where I live).
So in a month that is an extra 72 dollars. In a year, I'm saving roughly between 800 to 900 dollars.
I normally hate math, but budgeting is one thing I love doing. It makes me feel so much more organised and less stressed out about money.
If you work in food service and make tips, it's helpful to set aside your tips for a specific expense. For example, my coworkers and I usually use our tips for food money. On an average day I only make about $7-10 of tips a day, but that's usually enough to get a cheap dinner or lunch for the day to supplement regular grocery shopping!
I've been waiting for this video so THANK YOU! Also I love the Blank Check reference. It makes me feel like I'm not too old to be watching these videos lol
You're never to old to learn how to adult. I'm fairly certain no one has that down correctly, all the adults are just pretending they know what they're doing.
In the (paraphrased) words of Ze Frank to his (imaginary) daughter "sorry sweetie, I can't pretend to eat cake with you right now, I'm too busy pretending I know how to raise a child."
Meg Ashley literal lol
- Mike
Stephanie Williams, haha, no, you are *definitely* not too old. One of my favorite things about *making* the videos is that I get the opportunity to learn (or relearn) the things as we teach them. So, if I'm not too old to make them, no way are you too old to watch them. :]
Thanks for the comment!
- Mike
I tracked every single dollar of my expenses 3 months ago and I gotta say it helped so much! I realised just how much money I wasted on that morning coffee/muffin run (not to mention probably also unhealthy). I had realised I was spending almost $150 on breakfast every month - that's $1800 a year!! I now brew my own coffee and make my own breakfast most days.
When I first started out on my own, it was difficult for me to categorize things because I would pretty much exclusively shop at wal-mart or target, where I could buy literally everything. I found it helpful to keep the receipt and colour code my purchases (green for food, purple for clothes etc) then I would add up the totals in a spreadsheet. It really helped me to see where in wal-mart my money was going. Before, if I spent $100 at wal-mart it would feel like i bought $90 in food and then I would constantly wonder where all the food went! When in reality, I was spending $40 on food and $60 on misc. items.
I do my grocery shopping for the following week split between Saturday and Sunday. The next week's ad usually comes out on Saturday, so you can compare sales and get the best of each week. Also, get with your store's rewards program to earn credit for stuff you already normally buy.
My circumstances have changed a lot in the past few months, but this video has given me the confidence to believe I can still budget, even with reduced means - thank you!
I have a change/cash jar I give myself a minimum I must put in it every paycheck (varying based on my PT job hours). I also throw all my change in there, and usually avoid using my change to "even out" the change I would receive from a transaction. I don't touch the jar unless I need something (food, dog food, bathroom essentials, etc.). And I always make sure that that money is always added back (rounded up at that).
So is, "Takin' my own advice," the catchphrase?
I like it!
College textbooks! I just got those! So, my college actually offers a lot of different ways to get them, and I got all the books I needed for this semester for about $150 (including my music books) because I bought digital copies and rented a lot of them instead of buying them, which saved me about 100 bucks. I would definitely recommend that other students look and see if they can rent books instead of buying them and look at digital versions, that can save a lot of money. As for budgeting otherwise, I took a personal finance course in high school that gave me a lot of similar information, so thank you Mike and Emma and all the other crew members for giving good information and helping me to adult.
Fun video! I am making a "to buy" list. Anytime I wish I could buy something for myself, I will write it down. That way, it's not really a "no", but a "later." I will look at the list later and see if there is anything I still really want or need and maybe purchase one or two things on the list. Then keep the list running for next month.
This is really good stuff! The one class I took in high school that I really liked and was really the only class that taught me life stuff was a finances video series done by Dave Ramsey. It's also cool to see that Amanda is writing very good How To Adult scripts!
from what i can tell from my parents, who are very successful at budgeting, coupons are a huge help. instead of buying just whatever you see, taking the time to look at discounts and coupons saves a lot in the long run.
This is easier if you have a car.
Yeah, when I started university, I bought all the "mandatory" textbooks. In my last few years, I waited a week or two to see which ones I was likely to actually look at and only bought those. It saved me a ton of money. Also, when your classes are over, consider re-selling your textbooks, either through your campus bookstore, online or via flyers.
Super good advice: join a credit union. Not only will you get super good rates on loans and things, but they also often have free resources like financial counseling that you can take advantage of. Thanks to my financial counselor I finally have money in my savings account!
If you like to buy most of your produce at the market, go towards closing time (or even better, towards the end of the week) - prices of certain fruits and veggies drop significantly and you can actually save quite a lot per shopping trip.
You guys are heaven sent, wonderful. This helps so many so much, thank you guys so much! Definitely got DFTBA down! It really reassures me to know I'm not the only one struggling but also that there's such support for us.
When paying credit cards, round up the bill payment every month to an even amount. Then use the saved money to splurge after a few months... also works great for saving up for holiday shopping
Mint has been awesome for me- I obsessively check my finances so it's great to be able to track everything from my phone and see how I'm doing with my monthly budget.
I split my income before I do anything. 10% to charity, 40% to fixed expenses, 25% to savings split 50/50 between an emergency fund and retirement and 25% to flexible spending. Any extra in fixed expenses gets moved to my emergency fund. So far it's been working for me but this is also my first year with an income that supports this. I also use a separate checking account for all my bills, it makes things much easier for automatic drafts.
I would like to see you do a follow up video featuring the best use of coupons.
I take out $100 of "me money" each month for extras that I don't have in my budget - that Starbucks, cute top or new book are simply "me purchases." But when the cash is gone, it's gone. It's helped me eliminate the little purchases in my life.
Me too! Great tip!
I highly recomment "You Need a Budget", budgeting software similar to Mint but free for students. I used to budget using just a word document, and I could never keep track of everything, especially if I was saving up in a category, or if I overspent in one category and needed to 'pay myself back'. YNAB lets you do all that! A friend told me about it and I'm hooked. Also you can download the YNAB app on your smartphone (iPhone or Android) and it will sync with the full-blown computer version of your budget in YNAB.
Advice from a friend of mine:Take care of your teeth, brush them every day and don't drink soda all the time. He spent about 18000 DKK (not sure how much in USD) on fixing his teeth. He's now in debt.
+Angutivik Casper Rúnur Tausen Hansen Its about 2500 USD...^^
Thanks! Seiko Prof
sige hej til din ven for mig
From a real adult with real debit card problems on the mend: DON'T LIE TO YOURSELF. Thinking "I'll pay for this at the end of the month" is not enough. Think about all of your expenses and savings, think about whether you actually need it -whatever it is that you are purchasing,- or whether you can wait to have it later, and write it down so you don't forget about it, if you actually buy it. But seriously, don't go on shopping sprees with your credit card. It is kind of obvious, but nobody really tells you this... AND IT SHOULD BE WRITTEN LIKE EVERYWHERE!
Yes! I need to follow these steps to save up for VidCon 2015! PRIORITIES!
Madisyn Bowen Glad to see that our viewers have got their heads on straight. ;]
- Mike
That's my goal too!
I had a type-writer/word processor in my office. Funny thing: No-one wanted to touch the thing, so it was me who had to learn how to programme it, work it, and fix it. I needed to "fix it" rather often, because, obviously, with no-one knowing what they were doing on that infernal machine they started pressing the wrong buttons, changing the processor's language, activating other country's keyboard settings, etc. And then you - the lowest employee in the office - who is also unfamiliar with the new thing - sits there for an hour to try to figure out which random button your collegues mashed. And then the blame game starts.
I have real love-hate relationship with this machine, because it can make your life easier ...... if no-one constantly throws a wrench in its gears. Kind of nostalgic to see it again, though. Aaaaah a secure income in an office. What a time that was.
You can save a ridiculous amount of money by shopping according to coupon matchup sites for your grocery stores, as well as freebie sites and rewards programs (some, like Shop Your Way Rewards for Kmart/Sears, allow you to get points every week without buying anything just with a click or two).
My dad also taught me to pay the bills, and after those are done you take what's left and you put half of whats left directly in the bank in a saving account. The rest is "me money" to spend on what you want. Do not touch the bank account unless absolutely neccassry. It's surprising how fast that 3 months can actually add up. (Actually, he taught me that you automatically put 50% in the bank immediately after receiving your paycheck, then pay bills and the rest is "me money" but I had to modify because I didn't make enough to cover my bills)
I have been watching a few videos and they're GREAT and I will be coming back for more! But it occurred to me just now that you (lady presenter, don't know your name) don't appear to be wearing makeup, or at least have natural makeup but you look WONDERFUL and your hair is really beautiful too! So that's nice, best wishes.
I've always wondered how to make a budget for yourself! This clears it up a lot, thanks! :)
Omg Blank Check, whatta classic!!
I love the software YNAB (You Need A Budget)! It works so well! Never was able to stick to a budget before that.
Hey, Blank Check taught me how to write a check- that was kind of useful.
I also saved about $150 this month on textbooks because of Howtoadult teaching me about slugbooks.com
Katrina Eames YAAAY! So glad it helped!
- Mike
Katrina Eames Also, it taught me that Macintosh computers are very helpful for defrauding criminals of ill-gotten riches. Which is *super* useful in the real world.
- Mike
mint.com is actually saving my life right now. Great advice Emma!
The single most important thing about handling personal finances is to "pay yourself first." The first thing you do each time you get paid is set aside an amount appropriate to your income (usually 10%) and stick it into long term savings or investment. Only after that is done do you pay the fixed items (rent, etc) and last is the variable expenses (food, etc). If you find you have money left over at the end of every month, increase the percentage you pay yourself a bit to match.
Some months when things are rough you'll probably have to immediately take the money right back out of savings after you put it in. But it's very important to put it in first anyway, because that is a habit that will make a huge difference in your relationship with money throughout your life.
Budgeting is a little hard for me because at my job it's an hourly pay and I never know if I will have more shifts one week or another, and shifts are very short. Does anyone have advice for budgeting in my situation?
Maybe looking at all your pay stubs for the past few months and averaging the amounts?
Thanks, I'll try that out ^w^
Were it me, I'd look at the pay stubs and go by the lowest! Provided it's not too far off the others of course. Then you'll have more left over!
Another suggestion, once you've sorted out your budget, is to gradually move (by saving up gradually) towards living on your previous month's income rather than living paycheck-to-paycheck. This way, if you make less money than you expected one week, you have the safety net of money from last month already there to help you out, and you'll know you'll have to cut back a little next month.
Miranda Loeber Great tip! This is an issue of cashflow, meaning how much money you have on hand at a given time. If you can save up enough to consistently have a month's worth of living expenses, it will feel less erratic.
Quite informative and helpful! as someone who only just recently started making money, I'm beginning to see how easy it is to lose track of where it's all going :/
Try setting up an account that is only accessible online (i.e. you cannot use your card to access it). Then in this account you put all your rent, utilities etc. Also, try going grocery shopping with cash and no card. Take the amount you want to spend (or think you are going to spend) plus $10 extra just in case. This way you can literally see how much money you have and how much you have spent.
The problem with the type of micromanaging budgeting portrayed in this video is that it is fucking overwhelming. Tracking your expenses, adjusting expenditures based on behavioral patterns, saving for treats, these behaviors, while empowering require a lot of will power to maintain. While this type of budgeting may be the ideal, very few people are Benjamin Franklin and have the requisite compulsive behavior to track their money to such a degree, or the discipline to change anything about it.
A tiered system of budgeting is a lot better for most people. Track your fixed expenses first, those don't change and will give you the foundation for your budget (the most important part of any structure). Consider this money locked down, when you reach this happy minimum you can then consider anything else liquid money. This is the money you need to think about the most, or not at all as your preferences and situation dictate. Divide this money up into new tiers, opening a savings account funded by a fixed percentage or dollar amount of your gross income, that's a tier. Activities like hobbies or goal specific savings, that's a tier. Free spending money is also important, this is the top tier of your budget and thus the least important, this is a (preferably small) amount that you can spend however you like.
Remember to also leave yourself open to adapt your budget. No plan ever stacks up to reality and being able to shave off some of you budget for emergencies or really important events is helpful and downright liberating. Just remember that with any budget you do not have unlimited funds and any money moved to one spot takes away from another. And hey if you are having a bad week, fuck all this nonsense and splurge.
I lol at your blank check reference because I remember that movie having no actual big moral story for the kid. It literally taught me nothing... Except what I might spend a cool mil on 8)
To save money on textbooks, especially if your profs are the kind that never use that $250 worth of crap they made you buy:
1) See if there are Kindle versions available for any/all of your books.
2) Get Amazon's free Kindle reader app.
3) DON'T BUY THE BOOKS. Bookmark the Kindle editions so you can find them quickly if you ever actually need them... but if your attendance is good, you probably won't.
4) Should dire need strike, THEN buy or rent whatever book need... but chances are you can leave at least half in your shopping cart forever.
Sort of a budgeting tip I guess: I typically don't eat out unless I'm eating with friends. That way it feels like more of a treat and I'm saving money.
What you don't see you don't miss. Take the money out of your account automatically when your direct deposit comes in and goes straight to savings. You can set this up at your bank/CU web site. I had it doing $40 a pay period. Never even missed it. A year later I had a nice rainy day fund.
Thank you for the tips!
If you have local market that sells fruits or vegetables 9 times out of 10 the produce will he fresher and cheaper also as you can usually ask but amount you arent forced to but a full bag of potatoes when you only need 5. Not only that but as you get to know the owner you are likely to get even better deals as they want to clear the stall by the end of the day. For example i bought a set 3 of bell peppers the other day the guy on the stall gave me an open pack with 2 peppers for free as some one else had only wanted the one pepper.
Even the loose change bin is nice too, or putting some money aside to save slowly at a time. It build up. Plus, I found a place that takes all my loose change and converts it into cash for me for FREE with a certain machine. What? No rounding up the them into paper rolls? That's right!!! Dave Ramsey is a good resource too. Stay away from debt! Another good motto from Albert Mensha that I heard at a conference is pay now and play later, rather than too much of the opposite. Loving this channel. =)
saving up your small change like 10p, 5p, and coppers can add that little bit extra to your saving account
Once you get into your major more (especially in a smaller school) you can learn what some professors teaching habits are. I.e. they don't use books all that often, or at all, and I honestly ended up being completely fine just skipping the bookstore for those classes. You'll be totally fine. Also, look at textbook saving sites like chegg.com for when you absolutely must buy the books, and you can save literally hundreds of dollars.
I've found that as I get older my variable expenses are growing more and more frivolous, and I'm CONSTANTLY feeling the sting of buyer's remorse. I slap myself every time.
Keep in mind that rent/mortgage and food are generally the two biggest costs monthly (with the exception of medical bills, for those with physical or mental illnesses). Rent is not something you can easily cut costs on, but food definitely is, and can make a huge impact on your budget if you find yourself spending more than you make each month!
Great Video thank you I have shared on my show and FaceBook Page.
When I go and get something small from a store that's under $5 like a drink, snack or lunch I put the change in a jar. I already saved $7 from this past week. Then again, I'm just a jobless highschool student with a mom that lets them keep the change, it might be different for other people.
I find one thing that really helps is only going out to eat when you're going with friends. Also make sure you have meals that are easy to make at home so you won't use that as an excuse to go out.
Now I have to show this video to my fianceé and make him understand how badly we need to do this :D
Jona Kalinka High-five. My wife and I sat down very early in our marriage and asked ourselves a bunch of different questions about what budgeting/having control of money meant to us (i.e., time, freedom, less stress, etc.). From there, we reverse-engineered how to make our spending choices reflect our values. IIRC, we used a book called SMART COUPLES FINISH RICH by David Bach. I'm not a financial advisor, but I hearted that book and frequently recommend it to friends.
Thanks for the comment! Good luck with everything! :]
- Mike
Thank you for making this! This all seems like great advice. Maybe now I will stop postponing making my budget. Welll... probably next month ;)
Please do one of these for investing your money!! :D
If you're at college at you're cash poor but time rich you I've found that you usually find most of the textbooks in the library for use.
I was watching this and my mom walks in, pauses while listening, and then says, "send me that link..." Haha my momma wants to learn How to Adult....
Love this video!:) Also buying store brand food products and buying in bulk are some good ways to save!:)
I find debit/credit card transactions easier to track, but they also make me spend more money because there's something less 'real' about just punching in a pin. If I have to actually hand over cash I tend to think about it more.
If you find that you go through dollar bills and coins too quickly, try to keep as much of your cash as possible in larger bills. A dollar here or there doesn't seem like a big deal, but it can really add up, and you'll probably think a bit harder if you have to break a twenty in order to make a small purchase.
Thank you
Mint messed me up, I was signed up with Experian and I didn't even know I was and they kept taking money from me. So I cancelled everything. Just watch out when you sign up for Mint, just give you a heads up.
Only carrying cash is a really good way to cut impulse buying. If you don't have the money, you can't spend it.
Don't forget periodic expenses. I only pay auto insurance twice a year, garbage once a quarter and auto registration and car tax (Yea Virginia) once a year. If you base your budget on a month where you pay none of these expenses, you are in trouble from the get go. If you pay out for your income taxes each year, that is another payment that can throw your budget off.
You also might want to make the month you keep data on a 31 day month. Honestly, you will probably pay out more money that month than in February. If you get paid weekly or every other week, take that into account as well; you will get more money in a month where you get paid three times as opposed to a month where you only get paid twice.
Possibly the best way to go is an annual estimate of your income and expenses, but actually waiting a year to total up all your income and outgo isn't practical. The best you can do is to treat any more than once a month payouts as something to save for monthly, putting aside a monthly "payment" to collect until you actually pay the bill.
You guys are catchphrase teases.
I am terrible at budgeting. I've been monitoring for over 2 years but can't stop myself from using the saved money.
I used to write my expenses daily on a book and that made me aware about where I spend money in a useless way.
When I was in the service, every paycheck I would automatically deduct a certain amount of money to go into my savings before anything else. Then I paid for necessities. This money was later to be used to help pay for college. If you have something in particular that you're saving for, this might be helpful. Also, common sense stuff probably but always get stuff you need used, if possible, or borrow. Frequent your local thrift shop(s) often.
A little thing I like to do is put all my change in a piggybank and use that money once or twice a year to go out for dinner or to go shopping
good work.
self control is not my strong point so I pay my rent and bills as soon as the money hits my account and have a second account set up that I transfer money into right away, then use that money for doctors visits and bills that can't be paid right away. what's left over I vaguely think of as "food and stuff"
Wait a second, Emma, were you a MUSIC MAJOR?? :0
Science text books! Oh, you need to take microbio? Give me 250 dollars! That stuff is even expensive on Amazon. The grad school I applied to has the average cost of books in the tuition, and it's awesome.
*_tip:_* when budgeting, round the prices up so that you always end up with a _higher_ number.
e.g. coffee costs $5.49? put it down as $10.
toothpaste costs $2.89? put it down as $5.
just try to overestimate as much as possible, though if i have learned anything, anything _at all_, it is that one can never _truly_ overestimate when budgeting. nuh-uh, _nevozmozhno_.
I've decided my bank account into three. So I have one account for saving which I take out each month (roughly 30% of my salary) one account that I pay all my bills/rent and so on. And one account for spending.
The automatic savings withdrawal is a wonderful way to save. I speak from a long career with this feature in my budget. I will retire with less fear than many. It helped me be stable during the recession, and helped me not be afraid to budget like the early days until I found the next job. If you pay yourself first and juggle what is left to spend with thrifty habits, it's funny how it finally works out ok.
Me too! 401k deductions come out of my paycheck before I even get them. It's like the savings happen out of thin air =)
Agreed! I've been automatically withdrawing roughly 10% of every paycheque since my first part-time job when I was 16. (even when 10% of my cheque in the beginning was like $20 lol) It really does add up over time and now I make a lot more and can afford to contribute more. I now have a huge savings that I can use to partially invest, partially save for retirement and partially act as emergency fund!
What is automatic savings withdrawal?
Justineisftw It's where you tell your bank to set a given interval (most people do monthly) to automatically transfer a given amount of money (for example $100) from your daily bank account to a savings account - which is usually an account that gives you higher interest, so you can accumulate more money over time.
Yes, or perhaps your job will offer a 401k, 403b, ira, or might even do the automatic deposit into your savings account, no need to make sure the money will be there for the monthly deposit, it goes there first, before you start to spend.
i save my coins in a pile, and then go to a coinstar like machine either to decide to get a gift card for my self and that would how much I am allowed to spend at itunes/B&N/amazon for two-three months and repeat agin. I always find lots of coins and it feels like a treat to myself when I get these gift cards from coins and a way to monitor how and what I am spending at online.
Coinstar is a ripoff. It takes like 10% of your money. Just go to a bank to turn the coins into cash.
So, honestly, I made a budget and I came up with my husband and I spend more then we make, but we're not going into debt. (We are slowly eroding our savings, overall, though.) And I got frustrated and gave up. I should try tracking all of our expensive for a month, that might be a better place to start. Our income is variable, though...
i had to rewind at the data part bc i was laughing too hard
-Reading outside of class-what an oxymoron xD
I would really like to know how to start a 401K. I heard its best to start early and I have no clue how to do that...
I am starting to think your catchphrase is "we don't have a catchphrase" :)