Post # 1
I have a budget and I’m very diligent with it, I think DF and I do very well for what we make. I usually plan it for 2-3 months ahead. Each month I map out which pay to take off the usual expenses: rent, car, groceries, internet, phone, etc. I subtract those from our pays and then we are left with our money. With the wedding coming up I’ve been allocating more of our money to the wedding (which we both don’t mind doing). We are paying for the wedding ourselves and it will be paid off in November.
I noticed on a thread that @bretonvirgniia had started that she mentioned “future savings”, this is what I would call our money that we have planned to use to pay off the wedding. A few posters had some negative comments about this and I don’t understand why. I just call it planning ahead! The wedding expenses will be put on our credit card and then paid off with the money I’ve scheduled. Does anyone else do this? If not, can you explain why you are opposed to this?
Post # 3
@foreverthine: nope! whatever goes out can’t be more than what comes in this month!
Post # 4
@foreverthine: I definitely plan on money coming in, but I don’t finalize or book things unless money is in hand. Personally it is becuase I have had shitty things come up and the money that was allocuted for xyz now has to go into the car or medical crap. I do technically have an emergency fund, but I don’t touch that unless there is no money in my monthly budget that can be shifted.
Post # 5
My fiance has us on a budget that we try to stick to as much as possible. Altho, our wedding purchases are going on the credit card( and we will be paying it off for awhile ;( )
Post # 6
Yes, I always plan ahead an save for big expesnse that cant’ be covered by my normal cash flow. For example, although I’ve never had a car payment, I alwasy PRETEND to have a car payment and put that money into a savings account labeled “new car.” I do this even if I have a brand new car and don’t plan to buy another for 10 years.
Post # 7
I may earmark money to be earned for something I want or need, but I’m trying hard to wait to purchase until the money is in my account. it’s one thing to say, “I could use some new work clothes when the next check comes in” and another to say, “I don’t have money, but I’ll but some clothes now and pay for them after the next check”
Post # 8
No!!! I plan for things based on money coming in, but I don’t ever buy anything before the money is in my bank account. You never know what could happen – you could be let go tomorrow for no reason with no severance pay.
I also don’t put anything on a credit card unless I have the money to pay for it up front. I love utilizing credit with 0% interest rates to slowly pay something off instead of having a huge chunk of money leaving at once (like to make my money work for me and earn interest for as long as possible when I can), but I’d never ever ever purchase something on credit if I couldn’t pay it off tomorrow.
I’m not in debt (except for student loans) and have a healthy amount of savings and still live a very nice lifestyle. So, apparently I’m doing something right!
Post # 9
I save into a special account for larger purchases I might need to make (car and home repairs, new furniture or fun electronics), but I make sure I have money in that account before I spend it. Once I get to a certain threshold, I allow myself to make a “fun” purchase, but otherwise keep saving in case I have an unexpected necessary expense.
So no, I don’t spend money I haven’t yet earned, and I never put more on my credit card than I can pay off every month. That’s just setting yourself up for failure.
Post # 10
Nope. I’ve never wanted to have to count on future earnings and worry about finances. We’re at a good point and have enough saved now that we don’t have to count on future savnigs for anything.
Post # 11
I don’t base decisions on money I don’t have yet.
Post # 12
Wow, maybe I’m not in as good of a financial position as I thought. I’m hoping we can get to a place where we can start having savings, he only has a very minimal amount and it’s not enough if something bad happened.
Post # 13
Yes. We booked a vacation for January that we planned to pay for with future savings. The deposit was paid with current money, and the final payment will be paid with money on hard by that time.
Post # 14
We say “When we get our tax return we will buy XYZ” But we don’t buy it until the money comes in.
Post # 15
I’m guilty! DH and I put our trip to Costa Rica on our 0% interest credit card. If anything happens, we have the money to pay for it now. We’ll have it paid off before the trip and before the interest kicks in. We live way below our means otherwise.
Post # 16
I should also add that we save a LOT per month ($5k+) so we could pull from savings if needed. But we plan ahead like we won’t need to do that.