Money management

[purplejackmama]

So yeah, I need your best advice for managing your money. Tell me what that looks like in your house. Budget? How? Basically, help me act like an adult ;)

[abacus2]

YNAB

 

ETA: Dave Ramsey's advice about how to work with your spouse is very helpful. A key point: ensure buy in by insisting that if one spouse creates the budget, insist that the other spouse look over it and change something.

[Night Elf]

So yeah, I need your best advice for managing your money. Tell me what that looks like in your house. Budget? How? Basically, help me act like an adult ;)

 

I've picked up tips here and there to help me. DH was already a good money manager. One tip I learned was always to ask myself if I need something before I buy something. There is a difference between need and want. I do buy things I want but only when I feel we have the money to do so. We used to budget but we got so good at spending our money that we no longer need to track every dollar. We pretty much buy the same things each week/month and pay the same bills. We have money saved for an emergency. We put money into savings every paycheck.

[Guest]

Dave Ramsey has a new website for budgeting called Every Dollar. I haven't played with it yet, just throwing it out there.

[Ottakee]

First figure out what is coming in each week/month/year income wise and then what needs to go out.  Don't forget the irregular things like car tags, car insurance, property taxes (if not in your mortgage), any federal/state taxes you might have to pay, gifts for kids, graduations, holidays, baby/wedding, expenses for kids in sports/activities, clothing/shoes, insurance deductibles for medical, vacations, etc.

 

The goal is to work to save 6 months living expenses so that if a tragedy occurs---illness, job loss, flood/fire, etc. that you can survive.

 

Pay off any outstanding credit card and student loan debt.

 

Then start saving for bigger ticket items---next car, home repairs, car repairs, etc.

 

So much depends on your situation. Do you own or rent?  Do you have student loans?  credit card debt?  Any savings?  Is money already really tight or are you doing OK and just want to plan better?

[purplejackmama]

Ottakee, can I email you? I think you would be a huge help to me :)

[Anne in CA]

I agree that Dave Ramsey makes sense for a lot of people. Some of his advice is not going to work for some people, but the idea is sound. You shouldn't spend money you don't have. The issues that you may need to work on are... what are you going to do when you just want to go to Starbucks on a hot day and get an iced coffee, or a new movie want to see comes out right before payday? You should have a back up plan to keep yourself from feeling deprived when you are watching your money. Also, if your dh is a saver and you are a spender, remember that two people tend to polarize over time, so how can you each be more moderate so that both of your needs get met?

[Ottakee]

Ottakee, can I email you? I think you would be a huge help to me :)

Sure, message me and I can send you my email

[Ottakee]

.. what are you going to do when you just want to go to Starbucks on a hot day and get an iced coffee, or a new movie want to see comes out right before payday? You should have a back up plan to keep yourself from feeling deprived when you are watching your money. 

This is where a good plan has some "free" money for each spouse, and maybe the kids, each week that they can just spend or save as they wish, no accounting for it, etc.  For tight budgets it might be only a few dollars, for others it might be much more.  It just needs to be planned for in the budget and agreed on.

[kwickimom]

I use YNAB and follow Dave Ramsey. We budget each paycheck and give every dollar a name :)

[Runningmom80]

I'm not a dave ramsey follower at all, but I LOVE You Need a Budget.  It really has changed our lives.

[speedmom4]

I highly recommend Dave Ramsey. Even if you don't agree with him on religion or politics I believe he has the best method for personal finance. His Financial Peace University classes not only teach money management but motivate and inspire students. You can go to a class or buy the class to use at home.

 

Elise in NC

[Mnemosyne]

Another vote for YNAB here. They have some great free classes as well with some great tips if you're just starting out.

[Guest]

I just started YNAB, and I am amazed at how well it works.  I was having a hard time organizing three different variable income streams, bills, etc.  And I just have to say - because I am so excited about it - it's the middle of the month and I've got breathing room after paying 90% of my bills!  Usually I would have been overdrawn or seriously juggling by now.

[Scarlett]

Dave Ramsey has a new budget program.  I am using the free version and I love it.  Everydollar.com

 

I like his basic ideas but he can get a little radical for my taste.  

 

Dh and I just had a (for us) big texting argument yesterday about money.  I feel he blows my budget....he feels I am splitting hairs.....working with a spouse is not always easy when trying to get money issues under control.

[purplejackmama]

Ok Wendy, you've now got ME excited! :)

[Scarlett]

Also, I triee YNAB but had trouble with it...probably user stupidity....:/.....but so far everydollar is working very easily for me.

[Clear Creek]

We use YNAB, and I don't know how we ever survived without it. The app makes it so much easier, too...I can log a transaction the second it happens, which keeps my husband and I from spending the same money at the same time - the apps on our phones sync regularly, so the money I spend is reflected on his app pretty quickly, and vice versa.

[Ripley]

I've never used a program. I'm more of a fly by the seat of my pants kind of person.  This is sometimes a good trait.  When it comes to family finances this is less of a good trait!

 

I keep a dedicated financial journal. It functions a bit like the old checkbook logs used to, and is a record of all money in and out.  I've never heard of "executive function" issues until I came to this forum, but whatever you call it that's how I operate! So I keep a few envelopes around - one in my car, one in my purse, one in my other purse, and one by the desktop. Wherever I am, I stuff my receipts into the nearest envelope. Occasionally I write notes on the envelope or a specific receipt, such as what a specific deposit or withdrawal was for, or any cash transactions for which there aren't a receipt.

 

Once a week I sit down in front of absolute garbage on the television (hey, we all have a vice ;) Mine is watching shows that took The Learning Channel from that name to the shortened, less applicable TLC!) and I reconcile my receipts into the journal. It's good because I see how those $1.00 MickeyD's Cokes add up, and whether or not "my" gas station is higher than the ones my boys use, etc. It makes me more aware of where the money goes and where the better bargains are. A more organized person would just do it all digitally, or reconcile everything daily using digital helps (online access to accounts, etc.) but I'm old-school and undisciplined and I like bad tv, so ... I don't.

 

My journal includes different lists. I have an "Upcoming Expenses" spread, with things to take into account for each pay period. I am a visual person, so after "MORTGAGE" I have each month listed (JAN - FEB - MAR) which I circle after that month's expense has been paid. At a quick glance I can see what's still outstanding for the month, as compared to what finances are left in the disposable account. If you're familiar with Bullet Journals, it's a bit like that.

 

I also have a "Projects" spread with a quick blurb, an anticipated expense amount, and a running tally. So if I find myself with an extra at any given time, I have a list of projects to which I can apply that extra.  On there are things I like to contribute to throughout the year rather than get hit with a sudden payment due, such as: Christmas Shopping Fund, the Vacation Fund, the I Hate My Kitchen Cabinets Fund, School Field Trip Fund, etc. I have a Savings account to which all of these feed into. The running tally in my journal lets me know how much I've allocated for each fund. It allows me flexibility to "borrow" or "take" from the other funds as necessary, such as when the My Lawn Sucks fund required more than had been planned/budgeted. Because it apparently sucked even more I realized.

 

I take retirement and savings off the top before I even touch my income. So as each paycheck rolls in, an automatic x% is diverted into respective accounts. That's how I handle the "adult" business - get rid of it before I see it, because money burns a HOLE in my POCKET! A saver, I am not. Disciplined, I am not. :) My journal is about as good as it gets on those fronts. We've never gone hungry or without, bills unpaid, or retirement not contributed to.

 

Dave's plan is probably a good idea. I know lots of people use and like it. Those things just make me feel boxed in, like open-and-go curriculum LOL.

 

 

[Joanne]

Lately I have liked David Bach's material:

 

http://www.finishrich.com/

 

A good book about money:

 

http://www.amazon.com/Your-Money-Life-Transforming-Relationship/dp/0143115766/ref=sr_1_1?ie=UTF8&qid=1429032820&sr=8-1&keywords=your+money+or+your+lifes

 

If spending is a problem:

 

http://www.debtorsanonymous.org/

 

http://www.amazon.com/How-Debt-Stay-Live-Prosperously/dp/0553382020/ref=sr_1_fkmr1_1?ie=UTF8&qid=1429032941&sr=8-1-fkmr1&keywords=gerry+mundis

 

Another person I like:

 

http://www.chellie.com/

 

And, FWIW, YNAB is on my list of upcoming purchases.

 

 

[Runningmom80]

For YNAB, they run a sale through Steam periodically, I got mine 1/2 price that way. 

 

 

[Dancer_Mom]

Have to reply with a vote for YNAB.  We started it at the beginning of this year - it is VERY user friendly.  Take the free class they offer to get the basics of the program.  I do not know how we lived without it before now.  You can download the program for a free trial.

[Liz CA]

Also, I triee YNAB but had trouble with it...probably user stupidity....:/.....but so far everydollar is working very easily for me.

 

We are YNAB failures as well. It was user friendly enough but we didn't want to take the time to manually enter everything.

 

Is "Every Dollar" by Ramsey more automated, i.e., connects to your bank account and downloads transactions?

[Scarlett]

We are YNAB failures as well. It was user friendly enough but we didn't want to take the time to manually enter everything.

 

Is "Every Dollar" by Ramsey more automated, i.e., connects to your bank account and downloads transactions?

The paid version is automated and connected to your bank account. I am using the free version and it requires manual entry....but I prefer that.

[Aura]

I am a budget failure. I've never found a budget that worked. There are too many variables in my life, and budgets have been way to easy for me to manipulate. I'm still in need of a lot of improvement, but there are few things that help me. 

 

1 - Calendarbudget.com lets me see everything in a calendar mode, including upcoming and repeat transactions with a running balance. This really helps me see when and where my money is going to go and how to plan for upcoming events. 

• It's online, so I don't have to worry about my computer crashing and losing all my data (historically a problem for me).
• It doesn't access my financial information. I save files from my bank and then upload to the program to update the information.
• It syncs with Google calendar, so I can where I'm at on my phone, too.
• It's free! 

 

2 - "Do I have the money now and will making this purchase hold back my goal?" Before I make a purchase, I have to ask myself these questions. My goal has to be something I really want. Something vague like "paying off debt" just doesn't work for me. "Not having to work and being able to stay at home full time again" is much more specific and desirous. KWIM?

 

3 - Keep a buffer. Don't spend below this amount in your account.

 

4 - Set aside at least SOMETHING for savings every time you get income. I only set aside $25. But that $25 does add up. 

 

The buffer and savings help to cover unexpected expenses. 

 

One difference between this method and budgeting is this: Budgeting says, "I only have $200 on groceries." Buffering says, "I only have X in my account, so I can't spend more than $200 on groceries this time." *shrug* It's what works for me.

[walkermamaof4]

YNAB

 

ETA: Dave Ramsey's advice about how to work with your spouse is very helpful. A key point: ensure buy in by insisting that if one spouse creates the budget, insist that the other spouse look over it and change something.

I absolutely agree. My husband and I have a shared YNAB account on both of our computers and our phones. We enter every expenditure on it by category the minute we make it, in the line at the store or at the computer making the online purchase. And we took Dave Ramsey's class in a group setting, not trying to do it on our own. This has been a LIFE SAVER for us. Every child should have to do it in high school! Oh how I wish we had known when we were 20 what we know now!

[walkermamaof4]

I also need to add, I have always thought I was careful about our spending. Haha. YNAB has opened my eyes. I used Quicken and other systems for twenty years but only defensively, keeping track of money but doing nothing at all to budget. YNAB is a whole different baby. And this month we finally have our 6 months extra in savings after two years of working on that baby step! WOOT!!! We still have several baby steps to go in the Dave Ramsey system. In 2 weeks we are starting our 2nd time through the class--it is that good and we need to be freshly reminded of the goals!

[kroe1]

Baby steps.

 

Step 1.

Everything you put on your credit card, go home and deduct right away in your checking account. Then when it comes time to pay the credit card bill each month, you will already have the money to pay for it.

[purplejackmama]

Ok I'm ready for step 2, Minnie. We have no credit cards. :)

[elegantlion]

I used YNAB for a few months and that helped. I'm a single parent with minimal expenses, but have run the household when ex and I were together and he had a business. 

 

The first thing we found helpful was to track all expenses for 30 days. ALL. EXPENSES - even that 1.00 you might spend at a garage sale or for a snack. We used tiny notebooks to physically write them down. 

 

Budgets work best with both parties in a marriage understand and adhere to the budget. I would, however, budget a certain amount of blow money each month for each spouse, money that does not have to be accounted for in any way - make it a line item. I've had times when that amount was $10.00 and time when it was much larger. 

 

Also, realize it can take time to change poor spending habits or simply to change habits. 

[AmandaVT]

dp

[AmandaVT]

I'm a spreadsheet gal - I've read Dave Ramsey's book and found some good value in it and we were able to pay off almost all of our debt with his methods. Our problem with it ended up being the car issue - never having a car loan. We ended up buying lemon after lemon (that we had checked out by reputable mechanics - multiple ones) that we just dumped money into. Like thousands each time we had to go get an oil change. It was getting ridiculous. So now we have 2 reasonable car payments and don't worry about repairs. 

 

What I do:

 

I made a spreadsheet with all of our fixed expenses in the first column. second column is due date - subsequent columns are months in the year (Jan-Dec)

 

Under those, I made a nice big black line

 

Under that - our variable expenses (groceries, gas, spending money,etc) I also add in, for lack of a better word, optional money: going out to eat, clothes, that kind of thing

 

Under that is our savings goals each month and I break them out into: emergency fund, property taxes, longer term savings, christmas/gifts etc. 

 

Af the end of the month, I check Mint.com and fill in what we actually spent on groceries, gas, etc. to keep me on track and see if I need to adjust (either my spending or my goals)

 

Our income varies a bit each month, so anything extra goes to paying off our last credit card.

 

Each paycheck, the first thing I do is move money into the various savings accounts I have set up online. Our bills are all set to auto pay through our bank on paydays. In my head, I have our minimum checking account number set to $500 and anything that's left over that the day before payday goes to the credit card bill. Once that is paid off, that extra money will go to savings. 

 

Spreadsheet looks like this (I'll try to get the format right here)

 

Bill              Amount    Due Date   Jan   Feb   Etc.

 

Mortgage      $xx        1st          1/1/15

electric        $xx          20th      1/20/15

___________________________________________

 

groceries    $xxx                     $xxxx

spending    $xx                       $xx

 

__________________________________________

 

em fund  $xxx                        $xxx

Dr's        $x                            $x

 

 

[goldberry]

Here is one thing I can't seem to figure out when budgeting. There are too many variables. I can allow x money per month for clothing, but I don't buy clothing every month. I have prescriptions that cost me $300 every three months. I spend a ton of money in August for school things. Then there is car maintenance, doctor visits, etc, etc.

 

Do you put that money in a savings account and draw it out when you need it? How do you allocate it? Ideally I feel like I want 20 different accounts for all different things but I know that's not reasonable. I don't like having to switch money around all the time, like when I buy a $5 shirt at goodwill.

[Um_2_4]

Here is one thing I can't seem to figure out when budgeting. There are too many variables. I can allow x money per month for clothing, but I don't buy clothing every month. I have prescriptions that cost me $300 every three months. I spend a ton of money in August for school things. Then there is car maintenance, doctor visits, etc, etc.

 

Do you put that money in a savings account and draw it out when you need it? How do you allocate it? Ideally I feel like I want 20 different accounts for all different things but I know that's not reasonable. I don't like having to switch money around all the time, like when I buy a $5 shirt at goodwill.

 

I have items that are every 6 mos, etc also. I do have one savings account that I put all that into. Like I average our electricity bill over the year, but in winter it is considerably less (like 1/3 or less of what it will be in the summer), so I put that surplus each month into the savings. When needed, I transfer it into our main checking account.

[Ottakee]

For the reoccurring but irregular expenses...clothing, meds, school stuff etc. We made an account and named of freedom account. We put money in their each Month based on the average of it all for the year divided by 12. It isn't perfect but over time works pretty well. Some months you might deposit buy not need that money while other months you take out a lot.

[Guest]

Here is one thing I can't seem to figure out when budgeting. There are too many variables. I can allow x money per month for clothing, but I don't buy clothing every month. I have prescriptions that cost me $300 every three months. I spend a ton of money in August for school things. Then there is car maintenance, doctor visits, etc, etc.

 

Do you put that money in a savings account and draw it out when you need it? How do you allocate it? Ideally I feel like I want 20 different accounts for all different things but I know that's not reasonable. I don't like having to switch money around all the time, like when I buy a $5 shirt at goodwill.

 

In YNAB, I have lines for education, clothing, animal care savings, etc. So for this month, when I get paid, I will put $20 towards clothing and $30 towards animal care savings.  But I haven't liked any of the styles in the stores so I just move the $20 from clothing onto another line.  It's still in my bank account; I'm just switching around how I want to spend it.  At the end of the month, I haven't needed to withdraw any of the $30 from the animal care savings so in YNAB, it will roll over onto the same line, next month.  Still in my bank account and still allocated to that "account".

 

If I overspend for a birthday, then I will go through my "extra" accounts and grab money here and there to add to that line to make it balance.

 

Hope that makes sense...

[displace]

In your free time you can read Mr. Money mustache's blog about reducing spending.

[Annie G]

Here is one thing I can't seem to figure out when budgeting. There are too many variables. I can allow x money per month for clothing, but I don't buy clothing every month. I have prescriptions that cost me $300 every three months. I spend a ton of money in August for school things. Then there is car maintenance, doctor visits, etc, etc.

 

Do you put that money in a savings account and draw it out when you need it? How do you allocate it? Ideally I feel like I want 20 different accounts for all different things but I know that's not reasonable. I don't like having to switch money around all the time, like when I buy a $5 shirt at goodwill.

 

I have a master list of expenses I expect to spend every year- expenses that are either once or twice a year or just high enough that I can't cash flow them.  I start the year with that master list and add/subtract as the year goes on. I use my savings account to hold this accumulated money until I need it, and the spreadsheet keeps me informed about what's funded and what's not. 

 

It sounds way more complicated than it is.  My spreadsheet is titled Expected Expenses 2015 and is broken down by months.  Under each month I list what I expect to need along with a short description.  When the money is saved, I check the box marked 'saved' and when it's been paid, I mark 'paid'.  I also have a column to note which things I paid from my regular household budget vs tapping the savings account.  So for instance, June is coming up and I have two kids with birthdays that month and two grandkids with June birthdays. I have a line for each event, along with a dollar amount. I have already saved the funds for that so the 'saved' box is checked beside each one.   Looking ahead, I might see that I want to fund a summer trip that dh and I are taking,  put aside money for Christmas,  put about $500 into household renovations I'm doing this summer, and buying a plane ticket so dd can come home from Japan in August. Some of these are fully funded, some are partially funded, and some might not be funded at all yet.   

 

When I go under budget on things like groceries or gas, I toss the extra into this account and assign it a task. It is SO nice to have Christmas funded months before the season begins. Or to have the semi-annual car insurance funded a couple of months before I need it. It's so freeing, and it's a far cry from when we lived paycheck to paycheck. 

[MamaSprout]

Going to jump on here with a related question. What if you wanted to give a financial class as a gift to a college grad? We have two in our family this year.

 

How would you go about it? What would you recommend? I'm not sure they'd read a book, but if there were a really awesome one, that might work as part of a larger gift somehow.

[vonfirmath]

Going to jump on here with a related question. What if you wanted to give a financial class as a gift to a college grad? We have two in our family this year.

 

How would you go about it? What would you recommend? I'm not sure they'd read a book, but if there were a really awesome one, that might work as part of a larger gift somehow.

 

Shortly after we were married, my in-laws told us about a Crown Financial Seminar going on near us and said they would like to sponsor our class fees to attend. Was it something we could do.

 

We said yes, and they signed us up. We showed up and its one of the most valuable gifts we have received. It was VERY good to have that start to our marriage.

 

I have given a Dave Ramsey book before to a graduate but I don't even know it was read. If you know about a financial class happening, you might ask about it specifically.

[CAmomof4]

Dave Ramsey has helped us tremendously - even if you don't go for his personal beliefs, read Total Money Makeover.  He walks you through the steps on what to prioritize.   You can read the gist of it on his website.  The first thing will be to make your budget.  Then he has seven Baby Steps to get things on track.  First you do 1, then 2, etc.  If you're already doing half the stuff, then you know where to pick up.  He helps you see The Big Picture IMO.

[ScoutTN]

Also, I triee YNAB but had trouble with it...probably user stupidity....:/.....but so far everydollar is working very easily for me.

I am a YNAB failure too.

Scarlett, can you tell me how everydollar is different from ynab? Why does it work better for you?

 

The administration of entering things killed me with ynab. I probably need a more automated system. I probably didn't use ynab right, though.

[Zinnia]

We use mvelopes.  I think it is similar to YNAB.  You assign every paycheck (well, all deposits) into an envelope, then you know how much you have to spend in each category.

 

For expenses that are every 6 months or so, I just put 1/6 of the cost in the envelope every month, it adds up, and I pay it when due.

[JustEm]

I like Dave Ramsey's approach and use of the envelope system. We adjust our budget monthly, mostly it is the same as the month before but we always figure out how much money is coming in that month and make sure it all has a place to go. Require things get calculated first like mortgage, car payment, utilities, etc. Then I pick our grocery and gas budget. After that divide the rest sensibily in a variety of categories; extra car payment, entertainment for family, fun money for individual, gifts, car repairs, clothing, etc. We take cash out on the first every month for everything but bills we pay online and put the money in separate envelopes, we have 9 different envelopes this month. Some envelopes just accumulate money like the car repair envelope so we have the cash for it when it arises. It works amazingly for us and has really helped us work on our longterm goals together.

[happypamama]

Here is one thing I can't seem to figure out when budgeting. There are too many variables. I can allow x money per month for clothing, but I don't buy clothing every month. I have prescriptions that cost me $300 every three months. I spend a ton of money in August for school things. Then there is car maintenance, doctor visits, etc, etc.

 

Do you put that money in a savings account and draw it out when you need it? How do you allocate it? Ideally I feel like I want 20 different accounts for all different things but I know that's not reasonable. I don't like having to switch money around all the time, like when I buy a $5 shirt at goodwill.

For periodic stuff like that, I use ING, er, CapitalOne360. I have one account with a bunch of little sub accounts for various things -- each child's spending money, birthday money I'm saving until I find shoes I like, homeschool savings, etc. They make it really easy to keep track of it all.

[Guest]

So yeah, I need your best advice for managing your money. Tell me what that looks like in your house. Budget? How? Basically, help me act like an adult ;)

 

Ooooh! I love this topic!

 

My favorite book of all time (on this subject) is "Your Money or Your Life," by Joe Dominguez. The info about Treasury Bonds is outdated and may never have been a realistic strategy for people with families, however, the general frugal thinking in that book is pure gold. I used a spiral notebook to track income and expenses for the past...maybe 15 years? This is the first year I am trying to do it digitally, using YNAB. (I get frustrated with YNAB, though).

 

Summary: track everything. Measure expenses against income. Handy hint: income should be the larger category. ;) Consider purchases through the lense of, " Does this matter? Is it worth the exchange of life energy it took to buy it? Am I buying this to try to impress people or fit someone else's ideal?" I waste very little money if I examine this criteria.

[KatieJ]

I use Quicken. For budget items that are not weekly or monthly, I set aside money by entering an amount and calling it Christmas hold for example. Then when I spend that money I go back and either delete that hold, or adjust the amount I am holding. So if I have 300.00 labeled Christmas hold , and I only spend 50.00, I adjust that hold amount to 250.00. I am sure there is an easier way to do this besides the double entry system, but it works for me.

[Clear Creek]

I am a YNAB failure too.

Scarlett, can you tell me how everydollar is different from ynab? Why does it work better for you?

 

The administration of entering things killed me with ynab. I probably need a more automated system. I probably didn't use ynab right, though.

 

Nope, you were using it right...that is the key to successful budgeting according to YNAB. It requires you to input every single financial transaction and adjust your budget accordingly so you are conscientiously spending your money. The closest it comes to automation is scheduled transactions for automatic payments, which still require approval in the register.

 

ETA: I will say that YNAB is not for everyone. It is perfect for my husband though, who would deposit his paycheck, go out to lunch, buy a new pair of shoes for one of our kids, pick up pizzas and a movie for dinner that night, then be shocked when our bank showed that his entire paycheck was not still in the bank waiting to be spent on bills. He isn't stupid, he just doesn't associate debit card withdrawals with the bank balance unless he physically notes it and views it going down each and every time.

[purplejackmama]

I may or may not resemble your husband, Clear Creek. Ugh. Finances are so tough for me.

[idnib]

We've found mint.com to be really helpful. We try to have a budget meeting the first couple of days of the month to discuss what's upcoming but that doesn't always happen.

 

One good way to save, if you have a smartphone, is to get an account with a bank that has an app. At the bank, have a checking and a savings account. As soon as you decide not to buy something, log on and transfer the money to savings. So let's say you're out and about and think you want a coffee. Then you decide not to get it. Transfer the money for the coffee to savings, immediately, not later when you'll forget. Or maybe you were thinking of getting takeout but you decide to save money and cook at home. Don't leave the money in your checking to be spent elsewhere; immediately put it in savings. If you were willing to spend it before, you might as well put it out of sight and mind.

 

The biggest thing that made a difference for me when I was starting out getting my finances in order was auto-withdrawal of retirement, savings, and investments. They just went out and I dealt with what was left. Each quarter I would get a statement and that was it. It was surprising how much easier it was to save when the money didn't really exist. I'm better at manually saving now, but I still have our retirement and 529s automatically deducted.