help im using ancient finance methods

[tx246]

im not a man of great means but maybe thats why i do things the way i do. i use the good ole green stuff most of the time. it is done in a very organized manner though. i do write checks for certain things that i want proof that it was paid for. ie bills, mortgage, school lunch fees ect. i use business checks that come in the folder style. that way the checks stay at home. i probably write 10 checks per month. i deposit only enough money to cover those checks. i keep two weeks operating cash at the house. this money is used for the usual suspects. ie grocery, gas, entertainment, ect. this money is put into specific use envelopes and when the money runs out, we wait till next payday to refill. we dont do without but we dont have any waste either. we use a very detailed budget and it does wonders. we do 401k and take advantage of our employers stock options. a certain percentage goes to savings too. i do use credit cards for mailorder, and travel purchases but i pay them from savings when the bills show up. the budget calls for 350 per month to checking so i can write a monthly check to cover it. i used to write a 350dollar check to the credit card company every month whether i had bought anything or not. well, they didnt like that. after about the fourth month they owed me 900 dollars!!! they sent my next check back :) seems that they have a policy about not being able to make interest on a credit balance. i thought it was very, very two faced of them. hehe.

i know im a freak of finance nature but it does work. ive had friends who make way more than me ask for help. some are disicplined enough to make it work and some werent.

bottom line...........if you know where your pennies are going, then the dollars take care of themselves. too many people dont "really" know what happens to their money.

 

[Jaybird]

Dont leave home without it! :)

 

[jmics19067]

by far cash is the best way to go. If you dont have it in your pocket you can't afford it, and if it ain't worth saving up for it ain't worth havin. You will never be buried in debt that way. To use a check that is backed by the appropiate funds or to use a credit card with the discipline of paying it off to zero every month is close enough in my book though.

 

[Okiewan]

I hate credit cards! I use a Debit card and Amex for everything else. If I'm going to use credit, it's on the home LOC. <-- cheap money these days. I got away from that a couple weeks ago and bought a truck thru Ford, got 2.9%... nearly free money.

 

[RM_guy]

I either use cash or the credit card and pay off the balance each month. If I don't have the money, I don't buy it, excpet for cars and house loans.

 

[MXFastGuy]

Not sure what the flame is, but I'll chime in:

I use Microsoft Money religiously. Use very little cash. I use credit card for everything (pay balance each month, of course) and wife uses checks for everything. This makes tracking expenses easier and provides another "paper trail" for purchases. Cash works for some (i.e. envelopes and dicipline), but for us this works well.

I've got 4 years of data in Money, can track everything from dining-out and grocery expenses to 401(k) performance and FICA taxes paid. Also prints nice statements of net worth, income statements, etc.

 

[70 marlin]

Sound like your doing great! other then the credit card thing. only thing I'd change is the $350 would goto saving's insteed. and the 401k with stock would be change to somthing a bit more sercure maybe bonds I never really like companys offering stock for retirements? never put all your egg's in one basket!

 

[Tony Eeds]

tx246 - My hat is off to you .... Living in the Metromess and doing so without resorting to credit or chasing the Jones'.

I use credit all the time (business) but pay in off every month.

Now all I need to do is figure out how to get my clients to pay promptly as well. And to think that I thought self employment would be easier ...
Oh well, I wouldn't go back. :)

 

[dirtybkr]

Nothing wrong with useing credit cards ,they are a good source of " free money" , as long as you don't carry a balance . My wife and I NEVER do . A lot of card issuers offer some kind of incentive to use thier cards , such as frequent flyer miles or cash back , so we use our card (notice thats singular ) for EVERYTHING . Intrest rates don't matter , of course , becouse I don't pay no stinking intrest .

The only debt we carry is our mortgages , and we pay extra every month .We drive used cars , and pay cash . We have however taken advantage of some 0 % financing offers , but always pay them early . Our motorcycles are our only toys , and we saved for them and bought them cash also . It is not always easy to wait for things you really want , but not worrying about all that debt is worth it . If I lose my job today for spending to much time on DRN , I won't worry about them coming to get my bike .

 

[a454elk]

You can pay off your credit cards EVERY month! They never told me I could do that!:scream: No wonder they enjoy my business so much!:)

 

[linusb]

I used to be very adverse to having debt, but over the years have become a bit more tolerant with myself. My wife and I have government jobs so I feel that we are pretty secure in our salary. With interest rates being so low, I don't mind carrying 3 or 4 thousand credit card debt. I have one card that is 7.9% fixed. Pretty good deal in my mind.

 

[tysonkdx]

My wife and I drew up a budget last month . I couldn't believe how much extra money we had on paper after paying the bills. In the pre budget days it was pay check to pay check. now we always seem to have a little money somewhere

 

[Tod]

drive used cars , and pay cash

The only way to fly. :thumb:
Car dealers get all wigged out when you come in to buy a new car with a briefcase full of cash. :eek: