Budget/Financial system feedback sought.....

[Joanne]

I am *finally* in a situation where I can focus on intentional finances instead of survival. Due to the separation and divorce, I had to declare bankruptcy. I had already been trying for 4 years to "debt snowball", I had already sold everything I could, I had already been working as many jobs as possible.

 

We have the incentive coming next in May (according to DH's social) and hopefully an amended refund sometime in the next 8 weeks. I handle the money, but discussed with DH that $1500 of the money coming in goes straight into an Emergency Fund that I have been unable to fund. Reason? Becuase of the reasons I need an EF: life keeps happening, derailing our monthly budget.

 

I am well aware of Dave Ramsey's approach. I do not agree with him about everything (new car debt, for example). I don't even like his style/tone. But, if his online Total Money Makeover is the best system for me, I am willing to try it. It costs $89.00, comes with his book and an envelope system.

 

Another option is:

 

http://www.youneedabudget.com/

 

I'd like something online itegrated. Both the Quicken and Money on this PC are "expired" in terms of being able to use them with my accounts (this PC is 5+ years old).

 

So....

 

I need a philosophy, an approach, step by step guidance *and* a practical money system.

 

What do you suggest?

[st_claire]

I always figured that spending money on saving money didn't make much sense. Get some books from the library if you'd like to read up on systems, but most of the ones I've seen are the same.

 

- Make a budget

- Stick to the budget

 

Some people find cash easier to handle, so they use a enveloppe system like you mentioned. It's just putting the cash for the month into different enveloppes, like groceries or gas. Makes it easier not to go over.

[PariSarah]

I'd like something online integrated. Both the Quicken and Money on this PC are "expired" in terms of being able to use them with my accounts (this PC is 5+ years old).

 

So....

 

I need a philosophy, an approach, step by step guidance *and* a practical money system.

 

 

What do you need the online system for? What are Quicken and Money not handling? (I may just be too low-tech to understand.)

 

In terms of the last part that you were asking, yes, I think DR is what you need--an approach, step-by-step, practical, the whole bit. I don't know specifics about his online deal, and my style has always been to go low-tech (so I'd just get the book out of the library and buy some envelopes at Staples). But I do think you will get a lot out of it, even if you have to skim over some of his more . . . uh, characteristically "Dave" parts.

[regidg]

I am *finally* in a situation where I can focus on intentional finances instead of survival. Due to the separation and divorce, I had to declare bankruptcy. I had already been trying for 4 years to "debt snowball", I had already sold everything I could, I had already been working as many jobs as possible.

 

We have the incentive coming next in May (according to DH's social) and hopefully an amended refund sometime in the next 8 weeks. I handle the money, but discussed with DH that $1500 of the money coming in goes straight into an Emergency Fund that I have been unable to fund. Reason? Becuase of the reasons I need an EF: life keeps happening, derailing our monthly budget.

 

I am well aware of Dave Ramsey's approach. I do not agree with him about everything (new car debt, for example). I don't even like his style/tone. But, if his online Total Money Makeover is the best system for me, I am willing to try it. It costs $89.00, comes with his book and an envelope system.

 

Another option is:

 

http://www.youneedabudget.com/

 

I'd like something online itegrated. Both the Quicken and Money on this PC are "expired" in terms of being able to use them with my accounts (this PC is 5+ years old).

 

So....

 

I need a philosophy, an approach, step by step guidance *and* a practical money system.

 

What do you suggest?

 

I've always thought that Suze Orman made a lot of sense. Perhaps your $1500 is a little impractical for the time being. Could you do half?

 

I know you've been through survival, from your post, and you developed skills then that can help you now. Do without some things. However, if your family never does without, either, that will tank you, like being on a diet.

 

Everyone needs to pitch in to help save the money. Save coinage from cash purchases, balance books down to the penny (without obsessing).

 

I would offer my other practical tips, but I have a feeling you know most of them. Employ as many tricks as you can, cut anything and find alternatives.

 

For instance, it's cheaper to buy a $5 DVD than to have Blockbuster Online, for us. We don't do cable, though, so I would like to have BbO in place of that.

 

Cut some items/services, temporarily. Internet is very difficult to give up, but if you've been eyeing Dish Network instead of cable, for example, cut cable until Dish has a really great deal where you get everything in the package.

 

I suspect that you know all this, but just need a little encouragement and a memory jog. :grouphug:

[PariSarah]

Okay, so I peeked over at what the online plan is. Let me tell you what I'm doing free or low-budget and see if you think the added plusses you get on the website are worth $90.

 

* I got TMM out of the library. Free.

* I subscribe to the free version of their podcast--one hour a day instead of three. (That's really all the Dave I need.) Free. The iPod was a gift, so that part was free too. If I didn't have an iPod, I'd listen to it from my computer.

* I bought an expandable folder-envelope thingie from Staples, and use the litle envelopes the bank gives you for the individual categories. $4

* I don't use budgeting software anymore. Quicken is just a glorified calculator for me anymore. I use it to balance my checkbook and make sure the bank is recording, reporting, and reconciling things accurately. It takes five minutes at the beginning of each month to look over my checkbook and bank statement and make sure my utilities are in line with my budget; otherwise, everything else is on a cash basis. Quicken came free with my computer, and I have no interest in paying for an updated version.

* I don't feel the need for an online community, but if I did, a couple people have mentioned the livinglikenooneelse.com website. If I needed something online, I'd sign up there. For free.

 

Would something like I'm doing meet your needs? It isn't all integrated, but that hasn't really hampered me. I would probably go ahead and pay the $90 if I really couldn't pull this all together. But I think if you got the book out of the library, you'd find that it's pretty straightforward.

[j.griff]

What I am hearing, is that you would like a rec for a system that includes software- that will help you use their "system" and also function in the same way that Money and Quicken do- for downloading banking information, keeping tabs of expenses, etc.

 

I am wondering if it would be good to just get a book about a "system", and then update Money or Quicken (if that's an option for you, I believe we purchased a newer edition of Money at Sam's for a decent price).

[Amy loves Bud]

I always figured that spending money on saving money didn't make much sense.

 

Yep.

 

You can get his book from the library, you don't need a computer system. Having a money management system that is $89 when you are just setting up an emergency fund seems extravagant to me.

 

I have a friend who did the DR program, set up the envelopes, and uses Excel to track it all. We don't use DR's system, but Bud handles all our stuff on Excel as well, both personal and his business. It wasn't too tricky to figure out, and knowing you, Joanne, you'd figure out a new and better way to track it!

 

BTW, my friend didn't need to do the budgeting right now, but her husband has plans to leave a bad work situation this summer and she wanted to get a handle on things and start socking away. She was amazed at what a difference the cash in the envelopes made on her attitude about spending!

 

Good luck - I'm excited that you are seeing the light at the end of the financial tunnel. I know it's been a long haul.

[regidg]

The computer programs are great for my husband, but not for me. I like to get hands-on with my money. This involves me so that I can do what the founder of Kinko's does: write out your budget on the back of an envelope.

 

In a pinch, you know exactly how much money you have this way. Nothing beats it, and no one will take money from you if you do this. However, I know that money is overwhelming for some, but if there is any way you can do without a program to do much of it for you, I suggest it. I even prefer to send checks by mail to automatic withdrawals.

 

Does this do for a philosophy? :lol: Whatever method you choose, I hope that the crises subside long enough for you to get a little tucked away so that you don't feel quite so out of control.

[regidg]

...but Bud handles all our stuff on Excel as well, both personal and his business.

 

I thought of this. In fact, I have an Excel budget set up from last semester. It's in Excel 2007, but I can save as 2003 if needed, if you'd like that Joanne.

[Audrey]

Joanne,

Have you tried looking at Mary Hunt's Debt-Proof Living? You can probably find her book in your library (for free!) I much prefer her to Dave Ramsey. I, too, don't like his style or tone. Mary's principles are quite similar (the debt snowball is called Rapid Debt Reduction, but the process is the same). She also has a website that you can use, but honestly, I don't. I use good ol' paper and pencil (and my computer money program) to do everything her book suggests.

 

I started using her approach about 10 years ago, and I can say that it has been the best financial decision we've ever made. We don't make much money, but MAN! We've gotten very good living on less and have very comfortable savings.

 

Give it a look and see if it might be more your thing. You can PM me too if you want. :001_smile:

 

Good luck! You can do it!

[Joanne]

What are Quicken and Money not handling?

 

The versions on my PC are too old to communicate with my bank account and other accounts.

[Mandamom]

Use the DAve style without listening to him and modifying it to fit your own needs. It is free.

 

1. Set and maintain a budget and stop using debt at the very least until you get your current debt paid off. Some people use envelopes some don't. Some feel comfortable using a debit card and others don't have the ability to use the card without going over budget.

2. Save a certain amount of cash ($800-2000) so that you don't have to use credit cards and can pay off bills as they come in if you can't fit it in your budget (i.e. a larger doctor bill) anymore. this becomes your emergency fund.

3. Pay off your current and active debt and focus on at a time. You can do smallest to largest like Ramsey or you can do highest interest rate or whatever method you want to do. But pay it off.

4. Pull your credit report and make sure there is nothing on there that needs to be addressed. Pay off past debt.

5. Now, your consumer debt should be gone and if you start saving some more money you can prevent yourself from getting into more debt. This is Dave's Fully funded emergency fund usually 3-6 months worth.

6. Determine your priorities and figure out whether you are going to keep out of debt or use debt responsibly. If you do choose to use debt, pay it off before getting into more debt.

 

I use pen and paper for my finances. Occasionally when I get motivated I set up a simple spread sheet in Excel (actually openoffice's spreadsheet) but mostly just pen and paper.

 

Good luck.

[susie in tx]

We're attempting using the Dave Ramsey plan because it's the plan that my husband wants us to use. That said, I am in charge of the money due to the amount of travel that he does, so I end up being able to tweak it a little.

 

Currently, I'm beta testing the Mac version of the YNAB software. One thing about Jessie's plan is that he assumes you use the prior months money to pay the current month's bills. So, it may make a difference in how you use his software. He's very good about returning your money if you don't like the program, though, so I think it's worth it to trial it if it interests you.

 

I also think that purchasing a tool to help save money is a worthwhile investment. We've certainly saved the cost of what we've spend on Dave Ramsey stuff.

[Carol in Cal.]

"Your Money or Your Life"

 

and

 

"The Complete Tightwad Gazette"

 

 

They are both old enough to be in most libraries, but new enough to be pretty current.

 

The first has the best philosophy of becoming financially independent and of goal setting that I have ever seen. It is also pretty low tech. It's not great about investments, but up to that point it is very very good.

 

The second has the nitty gritty nuts and bolts of living on much less than most people can imagine.

 

I have to say, I don't use these 100% myself, but I can truly say that both have been life changing for me. (And in a good way.)

[Joanne]

Susie,

 

Could you share more about the YNAB interface and function and general "feel" and effectiveness? Heck, write a review for me! :-)

[Tutor]

Didn't "Charlie at Peace Hill Press" develop Pear Budgeting Software a few years ago? It's a free, computer-based budgeting system. I don't know if you can update accounts online with it (I don't use it), but it popped into my head since you mentioned the computer-based aspect of it. Here is Pear's website if you are interested. (Looks like it was free. Not sure if it still is.)

 

FWIW, I use Quicken. I just upgraded about 4 months ago because my original version was so old it was no longer compatible with online banking systems. I don't use it for budgeting, just for keeping account info. but I feel it was worth the price just for that. You can budget with it, but I haven't tried since upgrading, so I can't give you an up-to-date review. I found the older version we had very tedious to use for budgeting. Right now on Amazon, Quicken 2008 is $52 (unless you buy it through another seller, then you can get it for $37.)

 

You may also want to check with your bank and see what you can do on their website. Our bank lets us keep our account info (glorified register) on their site, scan-in deposits, and pay bills directly from our account for free. That coupled with an Excel-based budget may work. Although, I completely understand wanting to have all of that info in one place. The last place you need to feel schizophrenic is while working on your finances.

 

Hope this was more helpful than confusing. :D

[Joanne]

"Your Money or Your Life"

 

and

 

"The Complete Tightwad Gazette"

 

Thanks, Carol. I've read both of these and I agree with the recommendations. I don't have copies anymore (I do a lot of used book swapping). I'll have to check if I have credit at the store nearby (oops! Not *credit*, you know what I mean!).

[susie in tx]

Susie,

 

Could you share more about the YNAB interface and function and general "feel" and effectiveness? Heck, write a review for me! :-)

 

I will.

 

Let me play with a few more functions tonight and I'll get it to you by Sunday, ok? There are a few features that I'm unclear on and I need to spend a bit more time trying to figure out if it's a learning curve issue or an oddity in the software.

 

I will say that it has a check register and budget feature that are interconnected, which I like a lot. I haven't seen that in any other budget software and I've looked at a lot of them.