So I'm beginning to think about things to save a little aside for. It's so easy to use everything up that comes in. I finally started a VERY detailed but flexible budget (will share the format with anyone who wants a simple budget template). But I am thinking of goals....those things I'll violate when I buy something I could do without. These are longer term goals and savings, monies not to be touched unless there is a real crisis or for these needs specifically. So 1) ideas as to what categories one might consider additional to the below 2) I'm also open to ideas as to HOW to store this (I need to have pretty quick access, bank holidays are POSSIBLE as is hyperinflation) but low yield bank accounts suck. a) mad cash on hand always b) 3 months living expenses c) ince deductibles d) ? SCA Edit: to clean this post up of spaces marks and junk
That’s a lot to unpack. Live within your means and avoid debt. Financing a vehicle is the worst money decision there is. American trucks are expensive and the least reliable vehicles made.
Everyone's situation is different. We've been fortunate to save, save, and save some more. Carry no debt. We were able to max out 401k plans since their inception, back in the 80's. We then hooked up with a financial advisor who invested our $'s and now has us living comfortably. Best of luck!
I agree everyone's situation is different. I also hope everyone is putting away a little something something for the future, even if it is only spare change. I think goals to work toward is important. Goals (for me) inform my current spending. And motivate me to be mindful of saving. I'll take what I need here, but I'm kinda hoping others can pick up ideas for themselves too.
I should have mentioned that we charge as much as we can, to take advantage of whatever CC rewards that can be had. Whatever is on the monthly invoice, gets paid. Don't carry a balance!
I work with a guy that does that...seems like it would take tons of discipline to not charge more than you can pay off in a given month...dangerous...
It’s how I roll after being at the other end of just being able to pay min balances on several cards. Once I got it all zeroed out I never carried another month to month balance. I know what can go on a card and be paid off every month. I have not checked my rewards in years. They sent me a reminder email before Xmas so the balance must be making them nervous
It's easier than you think. After years of doing it, it just feels right. And as I stated, everybody's situation is different.
Its easy for very disciplined persons...I'd say for the VAST majority of the population, it would lead to long term debt...and that is also why the card companies offer the perk...they know that for every one card that gets paid off every month, there are 9 (more?) that will not be. I consider myself a pretty financially disciplined person, but I think putting everything on the card every month would get me in trouble...or at least the combo of both my wife and I doing it would...not blaming her, just the ole left hand/right hand thing...
I always found it easier to save money having a goal in mind. Saving money for the sake of saving money, as responsible as it is, doesn’t motivate me to stay on track. Saving paired with visualization of an end goal works for me. I found saving cash on hand to be easier as well. Throw $50 in here or there and it adds up over time. Looking at numbers and figures in an online account is too abstract for me. Seeing a stack of currency in a safe is tangible, and harder to part with in times of weakness. Of course that comes with it’s own pitfalls but everybody has their preferences. I do have a 401k that I’ve been adding to for years, but I don’t check it more than once or twice every couple months.
I was just discussing 401'S. That's 100% gain for every dollar I contribute to a point, due to company matching. If I put in $50, and they GIVE me an additional $50 . . . then that sum makes interest, sounds pretty hard to beat.
My way of handling money isn't for everyone, and goes against a lot of what the "experts" say on the interwebs. 1. I don't do a detailed budget. I have 3 or 4 places I save money every month and the rest I can spend. I don't care if it is electric bill or eating out. Don't have that kind of time to track every dollar. 2. I put almost everything on a credit card. Have done this for 20+ years and never paid a single cent to the CC company in interest or fees. 3. I run on very little liquidity. I have buckets I can pull from for big emergencies (past bills not reimbursed from HSA and 529 , Roth contributions, etc), but for the most part we live paycheck to paycheck. If I had a big pile of cash I would more tempted to spend it than keep it invested. It does take some discipline to do this, but working well for us so far. It also helps not having any payments for over a decade.
Never heard of a 100% match...I have had a straight up 4% match, but if I put in 10% the company still only matched the 4%. Awesome for you if they will match every dollar that you contribute. My wife was a Saint and got our debt to practically nothing. Luckily we have enough in savings to pay off our mortgage and truck loan and also have enough to live with no income for a year or more with no additional income. The mortgage and truck loan would be foolish to payoff as the interest is very low or non-existent. Good luck Sirchopsalot, sounds like you are on a good path...IMO
We will agree to disagree, I would rather have my cash liquid and pay pretty much all principal. But, if/when the chit hits the fan..None of us know which plan is the best!
I hear ya...and yep we will just have to agree to disagree, but I know there is a certain "sleep better at night" satisfaction that comes with having mortgage papers with "lien cancelled" stamped on them...which to me is worth more than the few pennies that I maybe could have made elsewhere...and yes, we were to the end of it where it was mostly just principle, so I get it, but after narrowly escaping loosing a bunch of money because of an investment firm that tried to "get fancy" and very nearly lost what for us is a lot of money, I wanted a sure thing!! When crap cut loose in 2020, I had no regrets, none!
I agree, it would feel great to have no mortgage and I congratulate you for paying yours off! I am not a big investor, and never will be...Truthfully I didn't realize anything cut loose in 2020. I am most likely to stooped to realize what happened! Finance, politics and religion are 3 things that I do not let affect me.
I have a couple of savings accounts in which a portion of my pay is automatically deposited. Those accounts are split between 2 different institutions (a bank and a credit union). The credit union account is for saving for big ticket items such as vehicles, house appliances, home work/repair etc. I rarely look at the balance. It has a matching credit union checking account that I keep a bare minimum balance needed to keep away any fees (something like $100). So,I have to transfer money into the checking account before I can spend it so I have to actually think if I really want it. I'm still on my original checks that had my old last name. I place that checkbook at the bottom of the pile so I have to dig it out to use it. I am sure I got a debit card but have no idea where it is (which is the way I want it). My regular bank savings account is for saving for wants as well as for emergency cash. That may sound weird but my bank gives me better interest rates than the CU does. I thought about splitting this into two savings accounts to split the wants and emergency up, but I've been managing well with just the 1 account. I also have a portion of my pay placed into a checking account (with my regular bank) that I keep a minimal balance in, with just enough to pay off the monthly bills plus a buffer in case I mis-calculated. If I have additional spending, I can easily transfer from the savings account. I have my cell phone and cable/internet automatically charged to 1 cc as I get a couple of $$ of for automatic payment. This is my oldest cc and I only keep it for credit purposes since length of time is part of the equation they use. I don't charge anything else to it. Since this is a fixed bill account, I know exactly how much I need to have in my checking account each month to cover it. I used to use a debit card for everything, but now use my cash back cc for most purchases. I used to think this would be tough to handle, but it turns out it isn't tough for me at all. Can't complain that some of my purchase come out for "free" by using the accumulated cash back. I pay off my credit cards every month. If I'm spending $$ for an online purchase, I usually let the item sit in the cart for 1 day before hitting the "buy" button. I've taken several things out of my cart at the end of that time. My company will match up to 4% of you pay. So if you only put 4% into the 401l, then you get basically a 100% match. My last company did that also so maybe more companies are going to that model.
