Personal budgeting

[ROE]

I hate budget I don't have one - ...how do I get around it...

I took out each month as much as I can for investing then I spent every single cent left on anything I like .... Money gone each month but investment pile grow big each year....

I draw out of the investment account for big ticket item but I make sure it be less than dividend / money in
That way money grow each year and Never run out of money....

 

[Huskar]

Hey all first post in a while...

On budgeting issue, in my opinion far easier to just allocate percentages of income to various "buckets" - that way you don't spend too much time or worry on it and kinda looks after itself.

Scott Page at Barefoot Investor actually has some real good tips on this.

For example take your after tax wage (weekly / monthly / yearly as you like) and allocate:

- 60% of your wage for those mundane expenses split into 30% rent, 15% food, 5% mobile / broadband, 10% car;
- 20% savings (some cash, the rest investing)
- 20% splurge! (holiday, beers, etc)

This way you don't have to worry about each line item.

Can even put it on auto pilot by getting wage directed to different accounts in those proportions. And if you are really good you up the percentage of savings (if only I was more disciplined)...

Ps haven't eaten any better meat than in Argentina

 

[skc]

Hey all first post in a while...

On budgeting issue, in my opinion far easier to just allocate percentages of income to various "buckets" - that way you don't spend too much time or worry on it and kinda looks after itself.

Scott Page at Barefoot Investor actually has some real good tips on this.

For example take your after tax wage (weekly / monthly / yearly as you like) and allocate:

- 60% of your wage for those mundane expenses split into 30% rent, 15% food, 5% mobile / broadband, 10% car;
- 20% savings (some cash, the rest investing)
- 20% splurge! (holiday, beers, etc)

This way you don't have to worry about each line item.

Can even put it on auto pilot by getting wage directed to different accounts in those proportions. And if you are really good you up the percentage of savings (if only I was more disciplined)...

Only works for certain income ranges. If I am on $300k a year hopefully I don't spend 15% on food... or I'd die from high cholesterol from eating truffle and Kobe steak everyday.

 

[medicowallet]

Thanks for some of the examples in this thread. It has been useful for one of my children.

MW

 

[CanOz]

Hey all first post in a while...

On budgeting issue, in my opinion far easier to just allocate percentages of income to various "buckets" - that way you don't spend too much time or worry on it and kinda looks after itself.

Scott Page at Barefoot Investor actually has some real good tips on this.

For example take your after tax wage (weekly / monthly / yearly as you like) and allocate:

- 60% of your wage for those mundane expenses split into 30% rent, 15% food, 5% mobile / broadband, 10% car;
- 20% savings (some cash, the rest investing)
- 20% splurge! (holiday, beers, etc)

This way you don't have to worry about each line item.

Can even put it on auto pilot by getting wage directed to different accounts in those proportions. And if you are really good you up the percentage of savings (if only I was more disciplined)...

Ps haven't eaten any better meat than in Argentina

Thanks for the post, agree on the steak, although I've not tried it there, only in HK. Maybe it wasn't really from Arg!