Comments on: How to Rock Your Personal Finances http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/ Fri, 10 Feb 2012 19:30:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve in W Ma http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-2108 Steve in W Ma Wed, 26 Aug 2009 21:35:50 +0000 http://www.lifeaftercollege.org/?p=368#comment-2108 It have found that it is very helpful to use a cash envelope system for the two or three categories that you tend to go "out of control" on. At the beginning of the month, just put the total cash amount of your budget for, say, weekend shopping/entertainment, food, and gas and parking into three different envelopes. Only spend out of those envelopes (everything else in your budget is probably paid for right out of your checking account so you only need those 2 or 3 categories in cash). Taking an example from your post, there's no way that you can fool yourself into spending the same $400 three or four times when you pull out your "weekend shopping" envelope and see that you have only $20 left. You know you're done shopping for the month when you see that. Doing most of your shopping in cash from envelopes develops discipline, provides an easy way to gauge how much money you have left for the month (just look in the envelope) and it seems to cut down on overall spending, in my experience. I combine it with a fuller expense and income tracking, but the foundation at the day to day level is those envelopes. They work great! It have found that it is very helpful to use a cash envelope system for the two or three categories that you tend to go “out of control” on. At the beginning of the month, just put the total cash amount of your budget for, say, weekend shopping/entertainment, food, and gas and parking into three different envelopes. Only spend out of those envelopes (everything else in your budget is probably paid for right out of your checking account so you only need those 2 or 3 categories in cash).

Taking an example from your post, there’s no way that you can fool yourself into spending the same $400 three or four times when you pull out your “weekend shopping” envelope and see that you have only $20 left. You know you’re done shopping for the month when you see that.

Doing most of your shopping in cash from envelopes develops discipline, provides an easy way to gauge how much money you have left for the month (just look in the envelope) and it seems to cut down on overall spending, in my experience.

I combine it with a fuller expense and income tracking, but the foundation at the day to day level is those envelopes. They work great!

]]> By: Steve in W Ma http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-5259 Steve in W Ma Wed, 26 Aug 2009 21:35:00 +0000 http://www.lifeaftercollege.org/?p=368#comment-5259 It have found that it is very helpful to use a cash envelope system for the two or three categories that you tend to go "out of control" on. At the beginning of the month, just put the total cash amount of your budget for, say, weekend shopping/entertainment, food, and gas and parking into three different envelopes. Only spend out of those envelopes (everything else in your budget is probably paid for right out of your checking account so you only need those 2 or 3 categories in cash). Taking an example from your post, there's no way that you can fool yourself into spending the same $400 three or four times when you pull out your "weekend shopping" envelope and see that you have only $20 left. You know you're done shopping for the month when you see that. Doing most of your shopping in cash from envelopes develops discipline, provides an easy way to gauge how much money you have left for the month (just look in the envelope) and it seems to cut down on overall spending, in my experience. I combine it with a fuller expense and income tracking, but the foundation at the day to day level is those envelopes. They work great! It have found that it is very helpful to use a cash envelope system for the two or three categories that you tend to go “out of control” on. At the beginning of the month, just put the total cash amount of your budget for, say, weekend shopping/entertainment, food, and gas and parking into three different envelopes. Only spend out of those envelopes (everything else in your budget is probably paid for right out of your checking account so you only need those 2 or 3 categories in cash).

Taking an example from your post, there’s no way that you can fool yourself into spending the same $400 three or four times when you pull out your “weekend shopping” envelope and see that you have only $20 left. You know you’re done shopping for the month when you see that.

Doing most of your shopping in cash from envelopes develops discipline, provides an easy way to gauge how much money you have left for the month (just look in the envelope) and it seems to cut down on overall spending, in my experience.

I combine it with a fuller expense and income tracking, but the foundation at the day to day level is those envelopes. They work great!

]]> By: Neil http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-1129 Neil Wed, 08 Apr 2009 23:55:47 +0000 http://www.lifeaftercollege.org/?p=368#comment-1129 Jenny is brilliant! Follow her advice and you will make yourself RICH! I do this with young people for a living and I see the "All or nothing" approach all the time. Just start somewhere, even if it's $10 per month, and you will thank yourself SO much when you're 30 and in control of your money. Jenny is brilliant! Follow her advice and you will make yourself RICH!

I do this with young people for a living and I see the “All or nothing” approach all the time. Just start somewhere, even if it’s $10 per month, and you will thank yourself SO much when you’re 30 and in control of your money.

]]> By: Neil http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-5258 Neil Wed, 08 Apr 2009 23:55:00 +0000 http://www.lifeaftercollege.org/?p=368#comment-5258 Jenny is brilliant! Follow her advice and you will make yourself RICH! I do this with young people for a living and I see the "All or nothing" approach all the time. Just start somewhere, even if it's $10 per month, and you will thank yourself SO much when you're 30 and in control of your money. Jenny is brilliant! Follow her advice and you will make yourself RICH!

I do this with young people for a living and I see the “All or nothing” approach all the time. Just start somewhere, even if it’s $10 per month, and you will thank yourself SO much when you’re 30 and in control of your money.

]]> By: Jenny http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-978 Jenny Sat, 04 Apr 2009 06:26:27 +0000 http://www.lifeaftercollege.org/?p=368#comment-978 @TOPolk - Trust me...I was SHOCKED when I saw that number. I think it's because I was working on my book and having breakfast, coffee and lunch at Starbucks. Still! Insane. Won't happen again. I hope. ;-) My Google Spreadsheet really only has ~10 rows: major bill due dates, credit card, rent, paychecks (and other incoming money), "start of month amount" and "end of month amount." Any more complicated and it gets tough to keep up with! Let me know what you think of CreditKarma...I'll be curious to hear your thoughts :) @TOPolk – Trust me…I was SHOCKED when I saw that number. I think it’s because I was working on my book and having breakfast, coffee and lunch at Starbucks. Still! Insane. Won’t happen again. I hope. ;-)

My Google Spreadsheet really only has ~10 rows: major bill due dates, credit card, rent, paychecks (and other incoming money), “start of month amount” and “end of month amount.” Any more complicated and it gets tough to keep up with!

Let me know what you think of CreditKarma…I’ll be curious to hear your thoughts :)

]]> By: Jenny http://www.lifeaftercollege.org/blog/2009/03/26/how-to-rock-your-personal-finances-audio-notes/comment-page-1/#comment-5257 Jenny Sat, 04 Apr 2009 06:26:00 +0000 http://www.lifeaftercollege.org/?p=368#comment-5257 @TOPolk - Trust me...I was SHOCKED when I saw that number. I think it's because I was working on my book and having breakfast, coffee and lunch at Starbucks. Still! Insane. Won't happen again. I hope. ;-) My Google Spreadsheet really only has ~10 rows: major bill due dates, credit card, rent, paychecks (and other incoming money), "start of month amount" and "end of month amount." Any more complicated and it gets tough to keep up with! Let me know what you think of CreditKarma...I'll be curious to hear your thoughts :) @TOPolk – Trust me…I was SHOCKED when I saw that number. I think it’s because I was working on my book and having breakfast, coffee and lunch at Starbucks. Still! Insane. Won’t happen again. I hope. ;-)

My Google Spreadsheet really only has ~10 rows: major bill due dates, credit card, rent, paychecks (and other incoming money), “start of month amount” and “end of month amount.” Any more complicated and it gets tough to keep up with!

Let me know what you think of CreditKarma…I’ll be curious to hear your thoughts :)

]]>