madoyster
01/10/08
- Location
- The Durty South
My 401k sucks right now. I lost about $16000 in the last 3 months.
Dave Ramsey, debt, credit cards, retirement, etc
- Thread starter SuperJETT
- Start date
Dude, how did you get into those numbers? Are you making millions?
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
It's definitely not, but for money that will be used within 4 years, bank account (or money market account) is the way to go. I'll probably buy a house next year.
For retirement, I do what Dave Ramsey recomends and put 15% into mutual funds. I max out my company's 401K match, then I fund a Roth IRA to get up to the 15% target.
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
I don't believe I'm diversified across the 4 categories that Dave always mentions. I'll have to look in it more... I don't have much invested yet.
douglee25
m3booooy
- Location
- South Jersey
I'm getting my full match with that $500, (5% plus 4% match). I did cut back to 1% (plus 1% match) while paying off debt, then right back up to full match once that was done, and once our full emergency fund is done this month will bump up 1% at a time until 15% (plus 4% match).
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
Who uses the envelope system? How many envelopes do you use?
I tried to explain it to my gf tonight, and she seemed to not like the idea of having 'a million' envelopes.
I tried to explain it to my gf tonight, and she seemed to not like the idea of having 'a million' envelopes.
I think we have 9 envelopes, but use our debit cards for gas, groceries and some miscellaneous stuff.
my clothes
her clothes
kids' clothes
church
gifts
dining out
home repairs
photos
haircuts
they stay in a wall bill organizer in the kitchen unless we need one. Those are rarely used honestly.
my clothes
her clothes
kids' clothes
church
gifts
dining out
home repairs
photos
haircuts
they stay in a wall bill organizer in the kitchen unless we need one. Those are rarely used honestly.
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
I thought you needed 1 envelope for every category in the budget? How do you relate the envelopes to the total budget (which gives every dollar a name, i.e. no balance left over at the end of the month).
Here's roughly what I was thinking:
food
clothing
general savings
christmas savings
birthday savings
giving
water bill
gas bill
electric bill
savings for next car
blow money
mortgage
gas
car insurance
entertainment
etc.
Seems like all these would be in my monthy budget (I have never made a budget).
Here's roughly what I was thinking:
food
clothing
general savings
christmas savings
birthday savings
giving
water bill
gas bill
electric bill
savings for next car
blow money
mortgage
gas
car insurance
entertainment
etc.
Seems like all these would be in my monthy budget (I have never made a budget).
Savings doesn't need an envelope, it gets deducted out of my check automatically.
All bills are set up to get paid automatically (incl. car insurance)
I lump Christmas and other gifts together, because they're gifts.
My tithing/giving is done via check I write each Sunday.
I like setting things up to where they don't need my input. Automatic deductions and bill pay ftw.
All bills are set up to get paid automatically (incl. car insurance)
I lump Christmas and other gifts together, because they're gifts.
My tithing/giving is done via check I write each Sunday.
I like setting things up to where they don't need my input. Automatic deductions and bill pay ftw.
douglee25
m3booooy
- Location
- South Jersey
In all seriousness, does it take that much discipline to manage your money? A good portion of those bill categories you listed will not change month to month. If they do change, it should only be by a few bucks here and there. You can absorb those small changes month to month without issue.
The more and more I follow this thread, the more I feel that many lose sight of simple financial management and get so wrapped up in the 'Dave Ramsey' technique. It's almost cult like.
Doug
The more and more I follow this thread, the more I feel that many lose sight of simple financial management and get so wrapped up in the 'Dave Ramsey' technique. It's almost cult like.
Doug
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
If it were just me, no, I don't even have a budget now. But if I get married someday, I'd like to use the envelope system, so that my wife and I would be on the same page.
It may seem like it takes a ton of effort, but it really doesn't. I get paid twice/month, we withdraw $260, it goes in envelopes, some money gets transferred to our personal checking accounts, some gets transferred to savings automatically, and other gets transferred to our bill paying account. Once I got it setup, it's simpler because everything is taken care of. When a bill comes in, we make the payment online and there is no figuring out if we have enough money or whatever because the money is there.
Hey, it works for us, and everyone's system is going to be different. Our envelopes are like mini-savings accounts. I have quite a bit in my clothing envelope because I haven't spent anything on that in a while, but when I do go shopping, I can buy quite a bit if I want.
It might not be the best idea telling everyone on the internet you have envelopes full of cash lying around the house.
I do however think the envelope system works well, I have tried it in the past, but did not like having the envelopes lying around the house (some accounts got fairly large after a couple months), so now I just put it all in a chequing account and try to watch my spending, and have automatic withdrawls set up for mutual funds, as well as a pension fund at work.
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