Are You Managing Your Money?

Hi

Are we soulmates? Great to see other people link the limitation of PMO to economicaI success. I also have excel sheets for the last 12 months (incomes and outcome) with the intention to predict our fortune when me and my wife turns 50 (38 year old now).

Our main goal is to be economical independent in such a way that we can cut down on work early.

Also, last year I started something I call the "personal money portfolio". It's a combined stock trading & money saving account that I aim to increase each year with a certain percentage. I'm not going to bore you with details, but this would not be possible for me while doing PMO. In fact, I believe I already see a pattern in my stock trading with regards to PMO (relapses). Which is expected off course.

I guess the sky is our limit

*** Apology for bringing up stocks in the thread. My point was that PMO limits us financially too

 

For me, if accounting is a pain in the ass, like Quicken, then I'm less likely to do it. I recommend trying out a variety of programs with a months worth of data, so you can figure out which program you like best.

I use YNAB due to the nice, simple, and reliable interface (quicken has weird issues). The PIA part is downloading info from each of my banks.

 

I was about to start a personal finance related thread, this is a missing piece of the forum!
Always interested to see and listen to others on how they translate no PMO success into financial gains, financial confidence, better financial life and more.

For me I tend not to see more saved spending as more disposable money.
It may be true as a matter of fact but saving on car expenses doesn't mean more expensive dinners for me.
I simply make sure all of my spending are sensible. Focusing too much on savings (or discounts) will limit your ability to think big to make more.

Money managing is important, making sensible spending/investments is one thing, increasing income as another.
The topic of increasing income is what I am always interested in. I would love to hear your attitude, insights, thoughts on this.

There is also a school of thought that worship passive income, a.k.a The Rich Dad/Poor Dad series,
Unfortunately in the country I am in, the laws are not very friendly with property owners.

 

Hey, post a template of your spreadsheet, would help a lot!

 

I try to manage my money but my dentist took it all

 

Glad I found this thread, just today I updated my journal that I need to become a better manager of my finances because I end up broke despite having enough money on payday. Problem is I view calculations as hectic and boring what is the MOST SIMPLE way to keep income - expenses track for people like me?

 

T

That is definitely good to identify the waste and unnecessary in your financials. However, in the grand scheme the more effective approach is to identify what you want to save extra and then figuring out how to make that while keeping your current spending lifestyle(assuming it doesnt have large gaps). Obviously its not always possible, but itsa great way to frame things to help you push towards a promotion, or increase revenue from a side gig. You may even save mode but investing extra time in your work and avoiding money sucking activities that arent worth your time

 

I used to ignore stupid reoccurring costs that piles up into big numbers.
Making mistakes like these only shows the tip of an iceberg, so I went over the board to accept no waste on every dollar I spend, dug up and changed many of the values on money along the way.
Then I met new friends who taught me, the world is money abundant and we shouldn't settle on a poverty mindset.
Today I still evaluate every spending regardless of amount. Your writing echo a lot, being responsible is the key, but don't kill the bird by holding it too tight.

Truly resonates and inspiring.
The social connection is the most important aspect for a happy life afterall, and this needs good (enough) finances to support.
"very grounded, quantifiable element of predictability to your life" is one of the biggest broader benefit I want to achieve with no PMO.
No PMO success, and financial success are more connected than people imagined.


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This is a little but very powerful adjustment people need to adopt, cutting down on needlessly expensive habits and checking on the expenses that can be sliced can save one enough to afford enough outings at least once a week....you are on point

 

I've been keeping track of my finances in a very simple and user friendly way for over two years now. I use pen and paper myself, I actually enjoy doing the arithmetic by hand too as it is a nice little brain workout at the end of each day/week. But I might be strange like that!

A few years ago I was in debt because of PMO (Cam sites), or spending money in strip clubs etc then eating lentils and rice for a week until pay day. Truly shameful behaviour. I am much better now and regularly paying into a savings account - a very small amount at the moment as I have returned to university.

 

Indeed, it happens more and more like global warming. I remember the times when we have to live on loans but the government forgave debts right now it's different. Once I wanted to take a car in the loan for my family, so I did it but I didn't think that the percentage of the loan will rise and I will not being able to pay for it. However, when I couldn't pay for the loan some guys from the international Private Debt Collectors (I lived in New Zealand) has come to me and asked for the money that I took. Since then I will never take a loan, ever.

 

Hey guys,

Being self employed I went through all the different hoops and loops of managing money. And I think that it was important to meet all the dead ends and find a way that works for me.

My system now would concise of the following:

1. Know exactly how much you earn.
This is important for me as I run my own business and my income varies from week to week.

2. Put ~some~ money aside every month.
I'm very liberal with that. On a good month I could be putting away 1000+, and only 20 on a bad one. As long as it's some money that I put away I'm happy.

3. Know your general expenses.
I know generally how much I spend on groceries, bills, etc every month and I do everything to keep expenses on the low side.

IMPORTANT NOTE ON THIS: I used to track every expense I ever made, every cent I spent would be accounted for. However I found this to be too limiting. I became a slave to my expenses. I stopped being relaxed. So I don't do this anymore. Instead I know my general expenses and also, possibly even more importantly, I don't waste money.

And not wasting money is what is the key here. I cook most of my food. I shop weekly and I don't throw food away. I only eat out when with other people, and never on my own. I'm very cautious of every subscription service. I don't buy cheap things. I choose quality over price, as it is cheaper in the long run. I don't own more than I need. My best clothes came from thrift shops and they are designer brands.
I brew coffee at home. I have a fuel efficient car.

If you come into a habit of not wasting money, I find that keeping expenses becomes pointless.

And finally, 4., on managing savings.
I always keep some money on the side for any worst case scenario. If all my income would stop I can currently easily live with my current lifestyle for 4 months, which is plenty of time to figure things out. When I have more savings, I invest them. If I have a little, I invest into stocks/crypto/etc but always in a way which gives me monthly passive income.
If I have a bit more than a little, then I invest them into my education. And if I have a lot, I invest in real estate or maybe a car, i.e. in something that has value and doesn't loose it too quickly over time.

I've been developing my system for 5+ years now with the current COVID-19 crisis I have to say that I'm super happy with it.

 

Yooo! i've been waiting for someone to create a thread about this!, i'm using money manager app to calculate my income and expenses but it's hard to keep up to write all your expenses in a day. My problem in my 23 years is how to saving my money, i'll be watching this thread tho.

 

I try to manage my money, I try to save some too... But sometimes it happen that you have an emergency (or priority).

 

stopped reading here

 

So what programs do you guys recommend? I have just a very rudimentary excel and it kinda does the job, but not really.