How do you handle money?

with my money clip

K
o
f

I'm broke, but I'm shrewdly broke in the sense that I know how much I can spend (which isn't much) and I budget out my expenses (which is a lot). So I suppose I'm getting the biggest bang for my buck.

My friends all say I blow money on useless stuff, but that's because I'm not very good at picking what to buy when I have a lot of discretionary funds. You can't exactly put an extra 50 bucks in opening an investment account, lol. That takes a lot more dinero.

Spend it all. That's what we women do best.

leothelioness said:

Spend it all. That's what we women do best.

Click to expand...

What she said, with the appropriate gender modifications.

I'm pretty good with my money, and at least when I am bad with it I spend it on things that don't lose their value. All the luxuries I've furnished myself with would give me their money back if I had to sell them. As of right now though I am broke because I have to pay for college... $12,000 this year out of my pocket after my scholarship, no financial aid, and also I really want to pay off a loan from last year before the interest gets crazy. I assumed it was subsidized because I got it through my school and I was wrong.

This thread actually brings out my cynicsm and some negative emotion.

According to Jesus, we aren't supposed to worry about it. Seek the Kingdom of Heaven first *and all these things will be given unto you*. That is - our basic needs - food, clothing (by comparison of how God feeds and clothes the birds of the air).

Yet there are numerous passages in the OT, specifically Proverbs, that seem to indicate otherwise:

Proverbs 6 said:

6 Go to the ant, you sluggard;
consider its ways and be wise!
7 It has no commander,
no overseer or ruler,
8 yet it stores its provisions in summer
and gathers its food at harvest.
9 How long will you lie there, you sluggard?
When will you get up from your sleep?
10 A little sleep, a little slumber,
a little folding of the hands to rest- 11 and poverty will come on you like a bandit
and scarcity like an armed man.

Click to expand...

Proverbs 13:18 said:

He who ignores discipline comes to poverty and shame, but whoever heeds correction is honored.

Click to expand...

The above passages certainly indicate to me that we play a role in our poverty or comfortableness or wealth. I've always had a problem with Christ's words in this instance unless it is seen as somehow in light of the passages such as the above. And I think alot of people don't think that way - instead they tithe or pray hoping that somehow, money is just going to plop into their lap. And we all know ministers who cater to exactly this belief.

Anyway - I just lost 9 hours of shift work at my job. It got me thinking about my budget (my lack of one, actually) - and tightening my belt - which is a good thing - since I waste alot of money unneccessarily.

What is interesting is in terms of investment - I find that thinking about money (whether I am making it or losing it on any particular day or week) is actually counterproductive. I work with alot of leverage - which means potential big profits or big losses. It is a *huge* discipline to focus on what the market is telling me (in terms of technical data like volume, range extensions(or lack thereof), tails and so forth) in making monetary decisions. Focusing on the $$ that are either being taken out of or put into my account leads to fear and greed...and in this business...that's destructive.

I have become an extremely great saver. I only buy what I need, and I save enough to have splurge days without feeling guilty.
If I really need something then I get it--- if I don't need it I usually, walk around the store an extra 15 or so minutes to think if what I am buying is worth it.

I work hard, so might as well use money in a positive way and not go into debt.

If I don't learn to manage my money now, I don't think I can ever learn to manage it. Might as well get it down at this age, so if and when I ever have a family, I don't want financial problems (carelessness) to be a reason for anything.


p.s It took me about 4 years to buy my car. So, now I enjoy it! Cause I worked hard for it, and don't feel guilty at all.

I once bought something.

Pay check comes through Friday.

Step 1. Pay bills.
Step 2. Put 10% in savings
Step 3. Spend the rest.

haha. Monday morning shows, Im usually pretty close to broke. Scrape through the week until Friday comes... Then repeat.

I'm pretty good with my money. I make sure I only buy what I need. I'm not going to lie... there are times when I'm with my sister and well, she makes me want to buy everything in the store,and then I turn to the worst spender ever! Seriously, don't go shopping with her! We're opposites, me and my sister.

I think I learned to save my money and buy wisely from my mom. She's always teaching me how to bargain shop.

Interesting topic! I think with money, the strongest influence to me is the one and only thing I held onto from the one accounting class I took, before dropping halfway through the semester lol. It's the principal of "opportunity cost." That basically means, when you spend money, the opportunity cost is what you're giving up to get that. So let's say I'm thinking about getting a new video game, the opportunity cost might be cutting back somewhere else in my budget, having less to donate, having to skip out on going to the movies or be a DD at the bar to avoid high beer costs. Or it may be as simple as having less to put in my savings account for a rainy day. So when making purchases, I tend to think not about the amount itself, but if I feel like it's the best route to take with that money or if there is a better option for using it.

One place I tend to give leeway to is food. I eat out fairly often and I try to do it in ways where I get to eat good, healthy food and not just fast food junk. That usually costs a pretty penny, but it's worth it for me to do that over the alternatives of having more money to work with in my budget but a less healthy diet. Obviously the real investment would be learning how to cook properly but to this point I haven't gone that route.

So that's the way I go thinking into it

I tithe to God, tithe to savings, spend the vast majority of the remainder on essentials (gas, food, insulin, etc), and the rest goes half to my emergency fund and half to spending. That usually gives me about $25 a week to spend.

If I had a job that gave me medical benefits, I would practically be rich compared to how I've lived my life to this point.

My credit is a pile of dump. I get forbearances when I can, but right now I'm not paying off any debt in either case just for sheer lack of funds. I have about $12,000 in debt because I made the completely stupid and financially counterproductive decision to go to college for a year, and I do plan to pay it off, but it's not a priority. I don't plan on using credit much anyway in the future. Cash or no deal, I say, and barter is better. I'm done with debt forever after I get my college loans paid, even if that means renting cheap for a long time until I save up enough to buy a house without a mortgage. I'm dead serious about that. I believe that people should defer consumption instead of going into debt, and I will practice what I preach.

MacFall said:

I tithe to God, tithe to savings, spend the vast majority of the remainder on essentials (gas, food, insulin, etc), and the rest goes half to my emergency fund and half to spending. That usually gives me about $25 a week to spend.

If I had a job that gave me medical benefits, I would practically be rich compared to how I've lived my life to this point.

My credit is a pile of dump. I get forbearances when I can, but right now I'm not paying off any debt in either case just for sheer lack of funds. I have about $12,000 in debt because I made the completely stupid and financially counterproductive decision to go to college for a year, and I do plan to pay it off, but it's not a priority. I don't plan on using credit much anyway in the future. Cash or no deal, I say, and barter is better. I'm done with debt forever after I get my college loans paid, even if that means renting cheap for a long time until I save up enough to buy a house without a mortgage. I'm dead serious about that. I believe that people should defer consumption instead of going into debt, and I will practice what I preach.

Click to expand...

A lot more people should approach buying cars like this, but a mortgage is a sound investment. If for no other reason than instead of spending 30 years trying to save for a house building someone else's equity you'll build your own. Not to mention that money invested in a house through a mortgage is going to significantly out perform the 1/2 a percent interest you're getting in a savings account.
Using credit for purchases is generally a bad decision. Using it to invest in assets like real estate is a pretty good idea. Run the numbers on what you'll spend in rent over the next 15-30 years vs what interest on a mortgage will cost you. If you're willing hold onto the house for 10-12 years there's almost no way renting is a better move.

i'm just thrilled to see a thread by you.

ProAntiRevolution said:

a mortgage is a sound investment.

Click to expand...

No it isn't. A mortgage is a liability. A home is an asset only after it's paid off, and then only if it's worth what you paid out in principle plus interest, and then still only if you are fortunate enough to have paid for it during a recession and own it free and clear during a boom, AND THEN only if you're renting it or when you sell it.

Run the numbers on what you'll spend in rent over the next 15-30 years vs what interest on a mortgage will cost you. If you're willing hold onto the house for 10-12 years there's almost no way renting is a better move.

Click to expand...

Only if you are renting beyond your means. Nobody NEEDS four bedrooms and two bathrooms unless they have like six kids.

The whole idea that you should go into debt for expenses is a wicked lie. People used to wait on consumption until they had enough savings to pay for it, and that led to less consumption in the short term. The modern lie is that the economy runs on consumption rather than on saving and investment in new productive processes. It's not even consistent with Keynesianism, much less any reliable microeconomic theory. Of course Keynes' belief that savings and future-oriented action are immoral didn't help, either.

MacFall said:

No it isn't. A mortgage is a liability. A home is an asset only after it's paid off, and then only if it's worth what you paid out in principle plus interest, and then still only if you are fortunate enough to have paid for it during a recession and own it free and clear during a boom, AND THEN only if you're planning on selling it.

Click to expand...

The only way that a house is an asset is when you're renting it out. Even between the period between owning the house outright and selling it, you have to pay A LOT of property tax on it. Renting it though creates a solid stream of extra income that may be taxed a bit and used for repairs, but it is something that will still be coming at the first of the month, every first of the month.

I live by one simple rule. Never let my outgo exceed my income. That's it in a nutshell.

I make, I spend, I save and I give away. The whole point of money is to be used so I do. It all goes somewhere and I think my choices in money are fairly smart considering I have no debt and a pretty healthy bank account.

The only thing I haven't managed to get down is the concept of investing. For me, every investment is a risk and I'm a touch too practical to put my money into anything less than a sure thing. But I hope to one day add that to the list of where my money goes.

broken_one said:

The only way that a house is an asset is when you're renting it out. Even between the period between owning the house outright and selling it, you have to pay A LOT of property tax on it. Renting it though creates a solid stream of extra income that may be taxed a bit and used for repairs, but it is something that will still be coming at the first of the month, every first of the month.

Click to expand...

I agree. If you go for a loan, though, the bank makes you list your "assets" - meaning things of substancial dollar value that you either own partially or outright.

To me, that is not an asset. Homes and motor-vehicles, even if owned outright, cost money to maintain. If they are costing me money - they are a liability.

Dictionary definitions aside - my definition of an *asset* is: something that makes me money. If I own an aptartment and rent it out *at a profit* - it is an asset...if I buy it in the right market and the price moves up - it is an asset on the day that I sell.

Assets don't have to be material things, either. Knowledge and the courage to use it are definately assets - if you use it. Like a degree in a specific field.