forums.rs

Forums

Personal budgets

Quick find code: 23-24-23-66289836

of 2
Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
My dudes, I am about to share how I personally budget. Right or wrong idgaf, it's just something to get people talking.

For my inflows, I use absolute bare minimum take home pay assuming no bonuses, raises or promotions. You can have fun and create more complex models, but for a basic household budget, I wouldn't include them.

In my professional life, I have created budgets and forecasts for income that isn't as predictable, and for this you generally look back at your history and identify trends and then forecast a similar trend forward. For a household budget, I wouldn't assume any gains, because, tbh, a budget is a constraint, not a plan like a forecast and I'm going to assume that not everything you do with your money is profit-earning, like a company's would be.

Next, the outflows. In general, for household budgets, I would recommend creating different subaccounts for each "bucket" that you want a better grip on. That said, I have a spreadsheet with various expenses just so I have a general idea and then I have bank accounts I transfer money in and out of.

For my spreadsheet, I have the costs for all utilities (broken down by month even if they bill quarterly), gas, take out costs, money to move to savings/investments, cell phone/internet costs, streaming services - literally everything. This is just to ensure that inflows exceed outflows on a high level.

Then, I have three bank accounts. One is set up as my auto-pay account where I transfer money (based on my spreadsheet) and all the recurring bills get paid out of it. I make sure that I put a little more than estimated in there to cover more expensive months and evaluate how much money to put in there about every 6 months. And I swear I'm not going to let her know all the pain I have known

04-Nov-2023 13:27:51

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
Then, I have an investment bank account where I transfer money specifically to be used on investments. For those who haven't invested, I would start small and learn to not obsess over it. A lot of the time, it is like losing weight, your number will go up and down daily, but you need to practice looking at it month-to-month unless there is reason to believe you should be more concerned. Obviously, there are a million ways to invest, so I won't get into those specifics, but I personally am a fan of dividends.

Then I have my main bank account, which is the money I actively manage a lot more closely. I have several budgets/buckets set up here. Obviously, I have my main checking, but I also have a primary and secondary savings account. The primary one is my "overflow" one, which is used if I accidentally overspend. The secondary one is my long term "oh shit" funds. I don't pull from this except for the "oh shit" occasions.

Then, I have the various other accounts that I want more control of. Like my mortgage, additional mortgage payments, projects, health, car, birthday and Christmas savings. I also have a temporary savings account that I use if I have short term expenses I want to save up for (like my trip later this month).

When my income comes in, money is immediately drafted into the other bank accounts and I immediately transfer money between the accounts in my main bank account. The amount I transfer is based on the spreadsheet I mentioned earlier.

Anyway, that's pretty much it and I am running out of time anyway. I'm sure I am missing a few things, too, but whatever. It took awhile to learn and set up (and I am still making adjustments to this day), but I usually spend maybe 15-30 minutes on my money on an average week.

Go ahead and share how you budget and maybe we can share helpful hints! And I swear I'm not going to let her know all the pain I have known

04-Nov-2023 13:27:57 - Last edited on 04-Nov-2023 13:38:52 by Averia Light

Archaeox
Dec Member 2011

Archaeox

Posts: 53,399 Emerald Posts by user Forum Profile RuneMetrics Profile
I find that reducing the number of service providers I have is a huge help in when it comes to keeping track of outgoings.

For example, a single account with my telco covers the family's landlines, mobile phones, internet access and cable TV over 3 different properties (home, my office, the weekend cottage) for 3 different people.

By asking (i.e. reminding the telco how much business I give them), I also ended up with better rates for these services- they are keen to keep me on board. This offsets any savings I might have made by (for example) shifting mobile contracts elsewhere. Win!
~~~~ Just another victim of the ambient morality ~~~~

~~ Founder of the Caped Carousers quest cape clan ~~

!! Slava Ukraini - heroyam slava !!

05-Nov-2023 08:26:12

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
Archaeox said :
I find that reducing the number of service providers I have is a huge help in when it comes to keeping track of outgoings.

For example, a single account with my telco covers the family's landlines, mobile phones, internet access and cable TV over 3 different properties (home, my office, the weekend cottage) for 3 different people.

By asking (i.e. reminding the telco how much business I give them), I also ended up with better rates for these services- they are keen to keep me on board. This offsets any savings I might have made by (for example) shifting mobile contracts elsewhere. Win!

Ahh, yeah the uk, I believe. Over here we have a lot of turf wars and, tbh, land between our houses and cottages where having the same Telcom service just isn't possible, lol.

But yeah this is a great tip if you can do it! And I swear I'm not going to let her know all the pain I have known

05-Nov-2023 22:54:37

Rooh
Jan
fmod Member
2006

Rooh

Forum Moderator Posts: 40,586 Sapphire Posts by user Forum Profile RuneMetrics Profile
I've gone from one extreme to another with money and budgeting - I used to be really careless, bought things without thinking how it affected my balance, rarely checked my bank balance, paid bills when I felt like it etc.

Nowadays I use a spreadsheet, check my balance daily, all bills are paid on time by direct debit, and I have an "emergency" account for unexpected bills (car repairs and that sort of stuff) that I top up when I have any spare funds.

Budgeting using the spreadsheet actually appeals to my nerdy side :P
Who's the cat that won't cop out when there's danger all about?

06-Nov-2023 11:21:59 - Last edited on 06-Nov-2023 11:22:49 by Rooh

PerYngve
Aug Member 2023

PerYngve

Posts: 8,195 Rune Posts by user Forum Profile RuneMetrics Profile
Rooh said :
I used to be really careless, bought things without thinking how it affected my balance, rarely checked my bank balance, paid bills when I felt like it, etc.

I don't know how anyone can live that way! :P That would scare me not knowing what I'm working with in the bank.

I get paid bi-weekly on Thursdays, I look at what bills I owe until the next check hits and I pay them. That's first. I would love to slap everything on autopay but I don't make that much money to be so carefree with paying that way.

Then whatever I have left over is for groceries, emergencies, entertainment, etc.
PerYng**

Spirits of Arianwyn

06-Nov-2023 15:25:20 - Last edited on 06-Nov-2023 15:27:14 by PerYngve

Archaeox
Dec Member 2011

Archaeox

Posts: 53,399 Emerald Posts by user Forum Profile RuneMetrics Profile
Averia Light said :

Ahh, yeah the uk, I believe...
But yeah this is a great tip if you can do it!
Haven't actually lived in the UK for nearly 3 decades ;)
~~~~ Just another victim of the ambient morality ~~~~

~~ Founder of the Caped Carousers quest cape clan ~~

!! Slava Ukraini - heroyam slava !!

06-Nov-2023 15:30:22 - Last edited on 06-Nov-2023 15:30:55 by Archaeox

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
Rooh said :
I've gone from one extreme to another with money and budgeting - I used to be really careless, bought things without thinking how it affected my balance, rarely checked my bank balance, paid bills when I felt like it etc.

Nowadays I use a spreadsheet, check my balance daily, all bills are paid on time by direct debit, and I have an "emergency" account for unexpected bills (car repairs and that sort of stuff) that I top up when I have any spare funds.

Budgeting using the spreadsheet actually appeals to my nerdy side :P

I basically just have a list for my spreadsheet, do you do something more fancy? And I swear I'm not going to let her know all the pain I have known

07-Nov-2023 01:57:25

Quick find code: 23-24-23-66289836 Back to Top