(Closed) Income versus Expenses

posted 5 years ago in Money
  • poll: Do you know your income versus expenses?
    I know I spend MORE than I make (either roughly or exactly) : (10 votes)
    18 %
    I know I spend LESS than I make (either roughly or exactly) : (42 votes)
    76 %
    I have no clue : (2 votes)
    4 %
    Other : (1 votes)
    2 %
  • Post # 3
    3303 posts
    Sugar bee

    I like budgeting and figuring out what/how much free money I have. I always know how much I am spending.

    Post # 4
    347 posts
    Helper bee
    • Wedding: November 2012

    You’d be surprised how many people have NO IDEA how much money they actually bring in. They could tell you their gross salary, but have no idea what that equates to after taxes, or on a monthly basis.

    If you don’t know how much you’re bringing in, it becomes really hard to figure out whether you spend more or less than that!

    Post # 5
    133 posts
    Blushing bee
    • Wedding: July 2013

    I am like you with spreadsheets and our budget super organized. But before we combined finances Fiance had no idea what he was spending compared to what he was making. This was when he was working and in school, so he made a lot less money and I think a lot of people choose to avoid budgeting when they know they don’t have a lot to work with.

    Post # 6
    5668 posts
    Bee Keeper

    I think it is common. I’ve been surprised myself how few people understand what I consider to be basic financial concepts. We spend less then we make and have an extensive budget that is constantly being updated and adjusted.

    Post # 7
    2214 posts
    Buzzing bee

    I have a very detailed budget, so I know exactly how much I have coming in, how much I spend on necessary things, how much discretionary spending I have, how much goes into savings, etc. I can’t imagine not know all those things!


    Post # 9
    2295 posts
    Buzzing bee
    • Wedding: April 2013

    I have been doing on-paper, on-purpose, before-the-month begins budgeting every since I moved out 9 years ago – back then it was because I had to make every penny stretchhhhhh, now it’s because I want to get as much out of my income as I can.

    I personally am a Dave Ramsey fan – I know his and some of SO’s advice can clash, but I think they both have great things to bring to the table. And at the end of the day, they both teach, you HAVE to be in control of your money, or it will just disappear. It really will, you have no idea where it goes but it’s the end of the month and it is GONE.

    When I was starting out, my expenses were like 98% of what I made in a month. It was tight. That other 2% had to go to cover emergencies, like a pet getting sick! OMG, I still remember when I had a cat get extremely ill in the middle of the night and I had to spend $800 to have him cared for. That was an insane amount of money for me.

    I’m now down to expenses being about 60% of what I bring home in a normal month, and I have about 50% of my pay coming out in taxes, 401k, health insurance, etc coming out before I ever get home. It is SUCH a blessing. I worked really hard to combat lifestyle inflation – putting raises towards retirement instead of bringing them home, automating savings, etc.

    Fiance and I are taking it one step further – we are going to live off of only his income once we are married. Our expenses (with a very comfortable lifestyle that we could cut back in an emergency) will be 92% of his take home pay. We’ll then take the remainder plus all of my income (and I actually make slightly more than him) and sock it away in savings towards buying a house in a few years. Then if one of us ever wants to be a stay at home parent or spouse, we can do it, have no house payment, and a comfortable life on one income. I anticipate we’ll have a paid-for house by 35 at the latest. Not having debt is the #1 best decision we’ve made – Fiance paid off his student loans quickly (and they were big, he just lived frugally), we bought cars we could afford with cash and moved up as we saved up. Debt will suck the money out of your pocket so fast. Your income is your biggest wealth-building tool, don’t sign it over to a lender!

    None of this is to brag – only to encourage anyone out there. The first step really is looking at where your money is going and getting control of it. You CAN do this!!

    Post # 10
    8042 posts
    Bumble Beekeeper
    • Wedding: December 2013

    @sienna76:  That’s why so many people are in debt.

    I’m not particularly great with money, and I got myself into debt when I was younger. I just kept spending, and assumed I’d pay any debt off when I got an awesome job out of university. That didn’t quite happen and I realized how long it would take.

    Fast forward several years and now I have no debt, good savings, etc., but I still let my bf manage the money because I know I am a spender. It’s not that I like being in debt… I just am not great with figuring out where the money is going.

    So to answer your question, yes, now I definitely am aware that I spend a lot less than I make, but it was not always that way at all.

    The topic ‘Income versus Expenses’ is closed to new replies.

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