Financial Habits

[lrjohnson]

Re: Financial Habits

I track my spending/reconcile my accounts at least twice a week. Even pre-challenge I wasn't spending all the time, so it takes very little time, bit I have such a good handle on exactly where every penny goes, I can't see not doing it.

[markio26]

Re: Financial Habits

just letting one spouse handle the finances.. we never have even a frown at each other since i handle the finances.... i just say yes or no, when we need to buy... the budget gives me the answer.. no emotions involved.

[getforfree]

Re: Financial Habits

I use rewards cc for purchases and pay it in full every month. I usually don't have more than $5 in my wallet in cash.

[PrincessPerky]

Re: Financial Habits

waste not want not..
oh and 'haste makes waste' not that I don't haste alot though!

[Ima saver]

Re: Financial Habits

Boe, how do I find the online envelope system??

[FrugalTexan75]

Re: Financial Habits

Ima,
I think he was talking about Mevelopes, which is a subscription service. It is a very good program, but for me, it isn't worth the money. What I would suggest, if you are wanting to move your budget onto the computer, is Jesse's "You Need A Budget." It is a one-time cost Budget program with *great* customer service and is simple to use.

Essentially, each of your budget categories is an "envelope". Let's say you budget $115 in January for groceries, and you only spend $100. In February your Grocery budget line (or "envelope") will begin with a balance of $15 + however much you budget for February. In my case I have a section with all of my Freedom Account (Mary Hunt) categories - one for car repairs, one for gifts, one for vacation, etc. I budget a certain amount every month to go into these various categories, but of course don't actually spend that much *every* month. So at the end of each month there is a positive balance. That way if a car repair has to be made which costs $400, I may have only budgeted $100 for my car repair envelope that month, but in my envelope I have more than enough from previous months budgets.

It really doesn't matter where your money is, just so long as you have accounted for all of it. I've actually color coded my budget items to show which bank or account that money is in, to make it easier for me to see.

I've used Money and Quicken and Mevelopes and a couple other budgeting programs out there, as well as making my own budget spreadsheet --- but Jesse's YNAB is the most easy to use one I've found - mainly because it doesn't have all the bells and whistles other programs include. He does have a money-back guarantee (I think it's 60-days) so if you don't like it, you can have your money refunded.

KIF,
Laura

[boefixepa]

Re: Financial Habits

Each person has their individual strengths and weaknesses. Cash in my hand is trouble waiting to happen. I know I could not do it. I do use Mvelope and it has been like a breath of fresh air! It's able to pull all my transactions from all their sources and give me a chance to track every little transaction to it's place. It let's me track my New Worth, something I had never even though about before. It allows me to pay all my bills on line and see the big picture. Quicken was not helpful at this. I used for years, but it was just a computer version of a check resister and I still though the money had left to spend for the month was what the register said. This is the BIGGEST falicy that existed for me. How much I can or can not spend has ABSOLUTELY nothing to do with the amount of money in my checkbook. That was a 'ligh bulb' moment for me. Years of watching my mother stress over that check register had somehow ingrained in my mind that it was the answer. It's taken a complete shift of thinking to get me to the point I am at now and I can't phathom going back. I like the fact that the information in not on my computer and thus much safter and I like being able to watch it everyday. Each just has to find what works for them.

[jmjj215]

Re: Financial Habits

My best financial habit has been having open communication w/ my wife about money. You're unstoppable if you're both on the same page financially. (Thanks for the plug Laura!)

[Ima saver]

Re: Financial Habits

I only put the amount of money into my check book that I plan to write the bills out for, nothing more. I do add $100 a week to the checkbook to pay the taxes and car insurances, and I keep seperate track of that.

[kealina]

Re: Financial Habits

the very best is living below our means... people would never think we have any money... and gotta love shopping around for the best deals...