The more you earn the more you spend. HELP ME.

posted 12 months ago in The Lounge
Post # 16
420 posts
Helper bee
  • Wedding: July 2018

Read The Total Money Makeover. It has changed my life, Dave Ramsey’s plan works if you stick to it. He also has a Youtube channel that he does a daily live radio show and you can watch previous shows.


For budgeting, I like because it works really well for my budgeting style. I have also heard great thigns about  and

I check the balances on our accounts every single morning. I pay all of the bills the day I get paid, then move some into savings,individual accounts for gas money,etc as soon as the bills are paid. I have noticed if I have “extra” money padding that account, I spend it. So I do a zero based budget. Which is exactly what is sounds like. I budget down to 0, Every single dime that doesn’t go to bills or food or gas or normal expenses gets saved into our savings account right now. Once we get $1000 saved back into our account for emergencies everything above normal bills and expenses will go to debt. Once our debt is paid, then it will all go into savings for a 6 month emergency fund and then saving for a house. 

Post # 17
1245 posts
Bumble bee

The day I get my paycheck. I automatically tranfer X amount to my savings account. Then rest is to be used. If there is excess at the end of the month I can transfer that to my savings account that I can’t get money out of more than 4 times a year. I don’t want to track my expenses. I know hw much  my rent and utilities are so I keep that ammount and then a few hunred for fun. I save the amount I want and rest I can use. When  I have less on my account the less I use and the cutting down comes naturally.

Post # 18
506 posts
Busy bee
  • Wedding: October 2015

The PPs have already covered tons of advice on managing finances, moving money to savings accounts, etc., so I’ll just touch on how hubby and I cut back on extraneous spending. We’re on a tight budget right now because we just bought a house, and I’m transitioning jobs.

1) Food: Our biggest expense, other than the mortgage and utilities, is food. We rarely eat out, since one meal out is half a week’s worth of cooked meals. I meal prep and cook lunches and dinners in advance so there’s no temptation to go out for lunch during work, and I pick recipes with lots of overlap in the ingredients so I’m not buying a ton of stuff for each meal. 

2) Cut out the beauty treatments. Mani/pedis and facials are luxuries, not necessities. I get a haircut and eyebrow wax when I need them, but that’s it. I can paint my nails at home if I want.

3) Alcohol: One cocktail at a restaurant would buy a six-back of nice beer to drink at home.

4) Pets: We have two dogs and a bearded dragon, so I get that pets are expensive. I don’t buy them tons of expensive toys. They get a good, healthy dog food and the occasional cheap discount toy that they can shred to their heart’s content. Dogs don’t care whether you buy them expensive toys or not, or at least mine don’t. They also get their favorite treats for bedtime, which I buy in bulk.

5) Gym: We have a bare-bones gym membership at Planet Fitness that’s $10/month per person. So we pay a total of $20/month for access to the cardio equipment and weights. We don’t pay for personal training, Crossfit, or other expensive classes. 

Hang in there, Bee! It’s so worth it to own your own home!

Post # 19
246 posts
Helper bee

going2bmrsc :  Ahh, I get it. However, if I were you, I’d want to be married or at the very least engaged before buying a place – it’s not about trust, but I’d rather protect myself, my money and my assets should anything happen. 

Yeah I think we’ll be fine with savings after we have a baby even if we don’t own our place – because by the time we have a kid (I am hoping beginning of 2020 as I want to get married first, and our wedding is September next year) we’ll have about 400K saved up in total. 

As far as savings tips: eating out in Australia is SO expensive, I know. At the moment we’re trying to have a balanced lifestyle, but we only eat out if it’s a dimmi deal, we also found this amazing app called EatClub and we’re saving SO much money on food with it. We go out on average 1 a week for dinner, 2/3 a week for lunch. Weekdays lunch is always a 10$ thai or similar, on the weekend we spend a bit more.

Regarding saving tips: the very day I receive my salary, I put X amount straight into my personal savings account, every month is the same amount. Y amount goes to a joint account I have with fiance (he contributes to it as well), and we pay out rent, bills and personal small expenses from there. I set aside Z amount for super extra contributions, because they lower my taxable income at the end of the year (you might want to look into it). 

I don’t drink coffee and I don’t have expensive breakfast out, as I said we only eat out on dimmi or eatclub deals. I bought a set of good quality make-up, and that lasts for a long time. My gym is 70$ per fortnight. I literally cut out every other useless expense.  

You’ll have to make changes and adjust your life, yes, you’ll have to spend less in booze, yes, but you gotta start ASAP, you don’t want to think “Oh if only I had started 10 years ago”. At your age I had like 800$ in my savings account (and that wouldn’t stop me from spending 200$ on a night in Kings Cross, shame on me), now after 6 years if I wanted I’d be able to put a down payment for a house on my own. Happy to chat more in private as I know how expensive it is to live here!

Also: move a set amount to a savings account each month and don’t touch it, ever. You’d be surprised to see how much interest you can get out of it!

Post # 20
40 posts

I use a method of 3rds. One third of my pay goes to household expenses. Groceries, rent before, now mortgage mortgage, insurance electricity etc. One third is savings. Before this was savings for the deposit now it’s going into a mortgage offset. One third is for fun and living life. Meals out, clothes, cosmetics, concerts, shows, hobbies etc. If there is any money left in this 3rd at the end of the pay period it goes into the savings/mortgage offset. This means in less busy/fun weeks is can save more than 50% of my income but it doesnt make me feel like I am missing out on living my life while saving for the deposit and now paying down my mortgage.

Post # 21
255 posts
Helper bee

With all due respect, where do you live in Australia where the cost of a house is $400,000? We are looking at buying (and not in the most expensive areas or that close to the city), and we’re looking at $800,000+ for a small house on a fraction of a block.

 Some ideas about how to save money:

  • Check to see if there are more competitive utilities providers. We have saved a lot by being on top of this. 
  • Carry cash, and limit yourself to spending this. You feel the sting more when you spend cash instead of tapping a card. 
  • No need to buy coffee. $4+ for a cup adds up quickly. 
  • Stop drinking alcohol. This won’t be particularly popular, but going out to drink is a black hole for money. Even drinking at home is expensive. 
  • When your paycheck comes in, put the majority directly into a savings account. Places like ING tend to have good interest. 
  • Quit any gym memberships you have. You can go running yourself, or do similar gym workouts at home for free, using apps/websites like Darebee. 
  • Cook meat free for a few days a week. Meat is expensive and not all that good for you in excess. 
  • When meeting friends, instead of going for brunch or coffee, go on walks or cook at home.
  • You don’t need to buy new clothes unless they’re breaking or unless you’ve got a new job and you don’t have any appropriate attire otherwise (or similar). When you do shop, buy classic pieces that look great for more than a single season.  
  • If you go on holidays, go locally. Australia is so far from the rest of the world, meaning that airfares are expensive. An airbnb in part of the state/country that you haven’t explored can be a lot of fun. 
Post # 22
726 posts
Busy bee
  • Wedding: July 2017

The easiest tip I’ve ever been told and have lived by religiously is this: “Pay yourself first.”

What does that mean? It means act as if YOU are a bill, and as soon as you get paid, take a certain amount that you can comfortably afford.. and put it right into your savings. 

Also, make it so that you can’t debit from your savings account. If you really need self control and think you’ll dip into your savings, put a limit on what you can withdraw or transfer from there per day. You can even set up so that every week/ month/ whatever, your bank automatically transfers a certain amount directly to your savings.

This system has worked very well for us. My husband and I are the same way, we have done our best budgeting when our finances have been tight. We know that if there’s more in our chequing account, we’re more likely to spend it. So we just put it into savings right away and leave a “bare minimum” of what we expect to spend that week. Then it’s money that is out of sight, out of mind.. and we aren’t tempted to spend it. This has allowed us to still go out to eat, spend money on things when we want, and keep “extras” like Netflix, etc without having to “cut down” on anything, because we know we’ve technically already paid “OUR” bill.

Post # 23
143 posts
Blushing bee
  • Wedding: January 2018

j_jaye :  Yes TK everything you’ve said, especially using cash.

When I was paying off my student loans (and dealing with having income for the first time, as well as the lifestyle inflation that came with it) having a monthly budget of cash was the only thing that saved me from mindless spending. I still struggle with it (spendaholicism runs deep) and have to go back to cash helps reset me. 

I divide up my budget into labelled envelopes and once the money is gone, it’s gone! It sounds silly OP, but it really worked for me to see where exactly the money was going. Good luck!! 

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