How do you manage your money?

JTL

Working with a guy who literally blows all his wages in the first two/three weeks (we get paid monthly) and then has a miserable time waiting on pay day to come around again. Saves nothing (although he is on a good enough wage for someone of his age and no responsibilities) and he if he lost his job in the morning he would be seriously broke.

I couldn't live like this and was wondering how common is it. Are there many readers of this post that can relate to this type of behaviour?

Fox_In_Socks

I have few wants and my salary covers them and my needs. So, no real managing going on.

K4t

Money aint got no owners, only spenders.

FreeFallin

I put x% of my salary into a separate savings account on payday. Simple.

Earthhorse

I just work out that I can't spend more money than I earn or have saved. Simple subtraction.

JTL

Doesn't seem to be that simple for many people though.

Jen Pigs Fly

How do I manage my money?



























Badly .... Very badly.

Earthhorse

JTL wrote: »

Doesn't seem to be that simple for many people though.

Sure. I call those people idiots.

dodderangler

Wages for sealed to pay bills, rent food shopping etc and what's left is for me to maybe have few drinks or go fishing or whatever

Amirani

Half in investments, quarter in savings account, quarter in current account.

osarusan

4-4-2, switching to 4-3-3 in the pub.

fussyonion

Quite well, considering I don't get very much.
I save €200 a week and have very little to live on for the rest of the week but it's worth it to be able to save.
It means I can go on a holiday OR have emergency cash should I need it.

Tigger

i do alright i made a conscious decision to actively manage myself properly from my 30th onwards
that was 10 years ago and now i'm a homeowner i'm debt free and i'm working on shortening my working week to have more time to spend with my people

life is short and getting on top of your finances and setting realistic goals and achieving them is very important

uch

Badly

umop apisdn

Like Geogie Best in his hayday, most of my money goes on cars, women and drink.
The rest I just squander.

lazybones32

A fool and his money are soon partying. And then regretting...

Menas

I dont really get thru my salary every month. But my Mrs is the opposite and she is more than happy to relieve me of the burden of saving.

Galwayguy35

I make sure the bills are always paid first and put some aside in a savings account and a pension as well.

Can never understand people who are always in debt and never seem to be able to manage money, but that's their problem.

fermanagh_man

Used to live pay cheque to pay cheque in early 20s they were some tough months but on the flip side I Damm well enjoyed myself

now 30 I've become mega sensible knowing that mortgage, kids etc are on the horizon

SpannerMonkey

JTL wrote: »

Working with a guy who literally blows all his wages in the first two/three weeks (we get paid monthly) and then has a miserable time waiting on pay day to come around again. Saves nothing (although he is on a good enough wage for someone of his age and no responsibilities) and he if he lost his job in the morning he would be seriously broke.

I couldn't live like this and was wondering how common is it. Are there many readers of this post that can relate to this type of behaviour?

that literally used to be me in my early 20's. its literally like you are writing about me .

these days with a mortgage and other bills to pay i look back and wonder what the hell i spent it all on, considering now im way overpaying my mortgage to clear it ASAP and managing to save a few hundred a month and still not overly pushing it . anything i have left over at the end of the month i stick into savings .

i think for me it was just a part of growing up and prioritiseing things .

Wompa1

Since about the age of 28, I started saving like a mad yoke. I'm also working 3 jobs right now. I have been for 3 months. I'll probably keep that up until November then bring it back down to 2.

I have a retirement fund setup but don't have much faith in it. So much could happen in the next 25 years that could render it useless. I've started thinking about just stopping payments into it and keeping it as a rainy day fund. If I end up losing my job, I can take out of my retirement fund.

I'm thinking I'll buy a home in about 3 or 4 years. Cash, no mortgage then after that I'll start putting what I'd usually pay in rent into a savings and hopefully retire young.

On pay day I put what ever is left in my current account from the previous month into savings.

The figure would probably be 100's more if I gave up the sauce!

Lia_lia

I'm okay with money. Could be better, could be worse. I used to spend loads of money on clothes when I was younger. Don't really do that so much anymore.

10% of my salary always goes in my stock scheme at work. Have never touched any of that money. Great way of saving! Some goes into a savings account in the bank. A little bit goes into a credit union. Sounds like a lot of saving, but I also have a car loan in the credit union and a direct debit every month for insurance.

Also starting putting my wages into a pension plan recently...eek!

Some of my friends are desperate with money. They complain that they are always broke yet smoke a packet of fags a day and spend hundreds on drink on a night out.

pickarooney

Basically cross my fingers an hope for as few unexpected expenses a possible. Frugal living with four people to support.

hattoncracker

Pay the bills for both of us and rent, pay my car insurance and husbands, help my husband out with maintenance or expenses for his kids if needed... have to tax my car this month too.. Use the rest to pay off credit card debt that I racked up when I was pretty much unemployed last year for a few months. When that's paid off ill be throwing it in savings.

Husband gets paid every two weeks and I get paid monthly, so we get all groceries etc with his. We live very frugally at the moment. I can't wait to have a bit more money at some point!!!

We also both pay into pensions, he has vhi for him and his kids, and we both pay union fees which are all deducted at source from wages.

mailforkev

I always wondered if there was a genetic/personality factor to money management.

I am very good with money management, always have been. I live my life and buy nice things but have always had savings etc. since I was a kid. This has been the case no matter what I've earned. Never had a loan apart from my mortgage, never had credit card debt or an overdraft. Somehow I just manage to live within my means easily.

My sister on the other hand could earn 10k or 100k and would spend accordingly. For her credit card debt and loans are not uncommon at all. Had to actually be temporarily bailed out in her mid 20s by my parents as was in serious financial trouble. Probably still has months struggling to pay her rent even though she has a very good job.

When I was in my early 20s and my friends all started getting jobs, there was always a couple who blew it in two weeks (48 hour payday weekend benders etc.) and barely hung on for the next two. It's no way to live (by choice anyway).

Avatar MIA

JTL wrote: »

Working with a guy who literally blows all his wages in the first two/three weeks (we get paid monthly) and then has a miserable time waiting on pay day to come around again. Saves nothing (although he is on a good enough wage for someone of his age and no responsibilities)

That bit is key. The lows of being broke make the highs of being in funds worth it.

There's plenty of time being old and sensible.

JTL wrote: »

if he lost his job in the morning he would be seriously broke.

So would the majority of people.

ytpe2r5bxkn0c1

When single and working, I never thought about managing money. When married with kids, we had to keep a weekly and monthly budget, put money away every week for electricity, car tax, insurance etc. Later had to be careful with money so we would start saving for the kids' education. Then that all passed. Family grew, moved up in the career, and now when retired I never think about managing money again and just spend as we wish. Things have gone full circle.

jester77

I've a spreadsheet with all my bills and all my fixed outgoings broke down my month. For example I'll put away €300 a month for holidays, €200 for clothes, I replace my phone every 2 years so I put away €30 a month, same for laptop, camera, consoles and every other device I regularly upgrade.

Whatever is left over after partying goes into a savings account at the end of the month.

I let it take care of itself these days.. I've got a decent amount in the bank but still live like I've got 200euro in it.

I do get the odd nice thing like a 2k laptop last week and a big trip to Macau next week but those are the first "nice" things in well over a year.

DivingDuck

FreeFallin wrote: »

I put x% of my salary into a separate savings account on payday. Simple.

Everyone does this.

The only trouble is, for some people, that percentage is zero percent.

R.D. aka MR.D

I honestly think it has to do with the way people are raised.

I would be mortified to have to ask somebody to borrow money even if I forgot my purse at home or something. That's definitely something that came from my upbringing.

I know plenty of people in their 30's who have no problem asking for money because they blew their entire salary. Other people know they have mammy and daddy to fall back on if things get really bad so they don't care.

I was careless with money for a brief period in my early 20's but ever since then, I've tried very hard to save.

I think having a goal/reason is important. I like to travel so saving for that is my motivation.

FURET

My wife and I do a budget every December for the coming year. Our 2015 budget is a spreadsheet with 13 sheets - a sheet for each month, plus a 13th sheet to see the consolidated annual figures.

Each sheet generates a pie chart, so I can tell that in 2014 we spent 6% of our income on vacations, and of that 1.5% was for the plane ticket.

In all our financial decision-making and planning, we keep the following cast iron rules:

1. We pay ourselves first - that is, the first thing we do when we get paid is lock in our savings and investments.
2. We save a minimum of 65% of our total income per month.
3. We always operate a monthly surplus (even if it's only EUR 20).
4. We have zero debt of any description and keep it that way.
5. If we can't afford to pay for something (including things like cars or a property) with cash, we don't buy it. Period.

not yet

33.3% on Drink
33.3% on Food
33.3% on Women

and the last 33.3% I squander..

TPD

I stick a couple of hundred into a savings account just after payday, plus whatever's left at the end of the month. Was trying to be frugal this month to see how much that left, but ended up spending about 500 on the car. Maybe next month!

Chickentown

K4t wrote: »

Money aint got no owners, only spenders.

Omar Little

Chickentown

Most people have done all they are ever going to do; they raise a family, earn a living and then they die!

ytpe2r5bxkn0c1

Chickentown wrote: »

Most people have done all they are ever going to do; they raise a family, earn a living and then they die!

Oh don't be so defeatist. There's a whole enjoyable life after earning a living and raising a family. I'd say it's the best part of life.

arayess

Earthhorse wrote: »

Sure. I call those people idiots.

really, I save a few hundred euro each month but unexpected stuff always crops up.
Throw in a partner and kids and a lot of people don't have a choice in what they save.

Calling them idiots is low tbh.

_Kaiser_

Badly

After the fixed bills like rent, fuel costs (cause I had to move and now commute again), utility bills and money for the little fella what's left has to go on food/essentials and emergencies and it's not much when you break it down.

It's kind of ironic that while I technically make more than ever, I'm only now at the net level per month that I had in 2009. FG bribing me with a mooted €60 extra per month of my own money in the upcoming budget won't do much to stave off the inevitable rent increase next year.

Ah the joys of being a middle-earner and single in Ireland. Pay for everything, get fook all for it .

Fukuyama

Between jobs at the minute (by choice) so I've made a conscious effort to reel in spending.

Few things I've done to cut down:

• No drinking - might as well have a hole in your pocket drinking in Ireland
• No new gadgets - I upgraded my laptop with an SSD and some more RAM. Cost a few hundred but now it'll last me another year or so instead of forking out for a new one altogether.
• No coffees to go, eating out much or buying bottles of water etc...

I also have a little spreadsheet that I keep updated just so I'm always aware of what I have going in, going out etc... You can get apps that do it automatically but I find that having to manually "do the books" every few weeks is a great way to keep focused on your financial goals.

Best piece of advice I can give about money though is to focus on getting more of it instead of spending less. Work on getting a raise or set up a small side business if possible. If you're technically minded it's not impossible to have a few apps or a website pulling in a bit of pocket money. I have a site that earns me a good chunk. It allows for more freedom and if a rainy day ever does come it's good to know that you've got a little revenue stream to keep you ticking over.

Teyla Emmagan

I am desperate with money. Real head in the sand approach. Every few months then things go badly wrong for me.

Fukuyama

Teyla Emmagan wrote: »

I am desperate with money. Real head in the sand approach. Every few months then things go badly wrong for me.

Most sticky situations with regard to money can normally be traced back months to when you had a little spending spree.

Best thing to do is cut out all frivolous spending for a month as a personal challenge. You'll be amazed at what you save.

Ultimately though I've found that being good with money is all about habits. Habits in the supermarket, habits in your social life etc...It might take a year or so to develop good habits but it's worth it.

Thankfully it manages itself for the most part - as we have no expensive needs or desires - so incoming is always higher than outgoing. Common money drains like subjecting oneself to the cost of a night out in this country - or being a slave to fashion labels - are not things that are relevant to me.

I do aim for self sufficiency though on many things- and I am very much a waste not want not person - so expenses are kept down by these things. Often the issue is not how you manage your money - but how you are managing the things that cost money.

r93kaey5p2izun

I'm ok with money but at the same time I can never seem to get to a point of being comfortable, despite being careful. I save just over half my wages. Of what's left I spend most on rent and bills. I don't drink or smoke and very rarely go out. Sh1t job contracts mean I'll never get a decent mortgage. Because of this my savings (even though a fairly significant amount) will never be enough to cover the difference. I'm miserable house sharing but afraid to pay to live alone as my pension won't be enough once retired and I'm terrified of what I'll do without secure accommodation sorted. I'm constantly worried about money.

Earthhorse

arayess wrote: »

really, I save a few hundred euro each month but unexpected stuff always crops up.
Throw in a partner and kids and a lot of people don't have a choice in what they save.

Calling them idiots is low tbh.

So then, you do save money for that rainy day and aren't an idiot. Look at the OP's post again, she is not describing someone with kids, or medical issues or whatever else might cause someone to be on a tight budget nor is she describing a situation where someone was caught on the hop by circumstances.

She's talking about someone who is reckless with their money on a regular basis. You're familiar with the adage "A fool and his money are soon parted."? Calling such people idiots isn't low, it's tradition.

valoren

lazybones32 wrote: »

A fool and his money are soon partying. And then regretting...

A fool and his money is some party.

My father was always of the opinion that "Money was made to go around" to which my mother would admonish him with a "Not ALL of it :mad:".

A part of all you earn is yours to keep forever, so pay yourself first.

- from the richest man in babylon.

Save first, then live within your means essentially you will always have money with this approach, when it becomes a healthy pot, invest it to earn interest and never spend it. Let compounding do it's work. Timeless advice.

This another thing that come up time an time again, generally speaking most people get by, they might not be great at managing their money but they more or less know that the mortgage and bill have to be paid and while they might be hit and miss at doing so they get by, or they could be fantastic at managing money.

Anyone with serious issues with managing money ( not talking about people who live on toast two day before pay day ) despite having a job usually have issues of some sort, personality disorders, addictions, severe impulsive behaviour etc.

valoren

valoren wrote: »

Save first, then live within your means essentially you will always have money with this approach, when it becomes a healthy pot, invest it to earn interest and never spend it. Let compounding do it's work. Timeless advice.

What's the point in having it then?

valoren

Lina Fat Cuckoo wrote: »

What's the point in having it then?

So you can live off the interest when you retire, pass it on as inheritance etc.

It's the old money, generational wealth principle, money looks after money etc etc.

You spend the rest after you put some of it away.

valoren

valoren wrote: »

So you can live off the interest when you retire, pass it on as inheritance etc.

It's the old money, generational wealth principle, money looks after money etc etc.

You spend the rest after you put some of it away.

Well I'm all for saving money and letting it build up but I'd have no problem spending it too if I wanted to buy something substantial.

I don't save money for the sake of saving it I usually have something in mind for it. At the moment that's a house deposit which will when the times comes probably use 80 to 90% of my savings in one go.