Are You Managing Your Money?

Discussion in 'Self Improvement' started by hashalot, Jun 13, 2018.

  1. hashalot

    hashalot Fapstronaut

    I'm amazing that out of all the threads in this subforum, there isn't a single one about managing personal finances.

    Recently, I started putting together spreadsheets where I record my income and expenses. I can say for certain that a lack of financial integrity added extra stress to my life that caused me to PMO. Now I have all my spending and income on record. I've been performing a wide variety of calculations on it, determining where I should spend less, where I could afford to spend more. Along with that I've established some modest financial goals and I am getting close to having a predictable timeline concerning the achievement of those goals.

    I'm not wasting time reading books in finances or listening to whoever. I can do math - it's my job. And math surrounding money tends to be very simple. But now I am in 100% control of my financial destiny and it is adding an enormous sense of calm and security to my life. You all will be amazing what kind of nonsense you'll find if you start closely monitoring your money.

    Feel free to add input, but please let's stay away from talking about investment with specificity. I really don't want to read about your stocks, roth-whatevers, 401...things, or your crypto. Let's get a conversation going for the layman just about day to day spending, making, and tracking money. I'd be happy to post a template of my spreadsheets if you're interested!
  2. Legoman

    Legoman Fapstronaut


    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
    Last edited: Jun 14, 2018
  3. primaljade

    primaljade Fapstronaut

    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.
    Nugget9 likes this.
  4. whatrichme

    whatrichme Fapstronaut

    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.
    hashalot likes this.
  5. Lyfe

    Lyfe Fapstronaut

    Hey, post a template of your spreadsheet, would help a lot!
  6. I try to manage my money but my dentist took it all
  7. 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?
  8. 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
  9. hashalot

    hashalot Fapstronaut

    Okay. My template is as follows:

    I use all open source software, so I'm using libre office, which generate .csv files (comma separated value) so if you cut this text, and paste it into a text editor, save it, then open in in a spreadsheet editor, you should get a similar template.

    First, I have my financial goals. These are just about beefing up very short term savings accounts. I have a general savings account, a vehicle savings account, and a savings account for my a new computer. It looks like this:

    Account,Balance,Goal,Percent of Goal Reached,Rate of Change,

    Following that, I'm tracking each month. I order the months chronologically reversed so the most recent month is at the top. Then I order my income and expenses chronologically forward so they read downward. This is what it looks like:

    ,2018-05-01,Work Paycheck,$666.66,,,

    Then, at the end of every month, I total each category. One category I have for expenses is "mismanagement". This is stuff I'd waste money on that I shouldn't spend at all. For example, I rented a book for school but forgot to return in and they charged my debit card ~$90.00. That's just plain failure at being a responsible person, which ought to be tracked. I think a lot of the young people on this forum in particular are loosing money to that. The second area I found I needed to cut down on was eating out. I have a great, healthy diet that is extremely cheap. If I drive eating out down to zero for even one month I could save ~$200.00. My average grocery bill is only $55.00 in spite of the fact I consume 3500 calories or more every day.

    One you have a few months on record, you can begin to quantify the rate at which you fulfilling your goals.

    There are a few other things I'd like to point out that are misconceptions surrounding tight money management. One is that it turns you into a square. This is false. One thing I took into account when looking at my "eating out" expenses was this: if I cut that expense in half, then turned all that money into "going out" money I could go out once a week with $25, which is five overpriced shots of vodka.

    I'm saying this because I intentionally want to agitate a lot of the guys who post in the loneliness forum. I've often cried about being alone / feeling alone. But once you start managing your money, you add a very grounded, quantifiable element of predictability to your life. Then you might realize - hey I'm not as alone as I think. I can afford to go out and meet people four times a month. That's 48 times a year. Something is bound to happen. Furthermore, I think it curbs the depth of depression we allow ourselves to assume. If you know that, based on your budget, you have something you've planned for to look forward to that pit where shit gets really dark just cannot be reached. It stops making sense because it stops adding up. Some of us are longing for something better so much that all we need is one real glimmer of hope.
  10. hashalot

    hashalot Fapstronaut

    We're on the same page. Part of my finances, as you'll see in my post above is just re-allocation of money for having more fun. I am a big proponent of comparative advantage - the skill you've specialized in is what you should spend most of your time doing because that will bring you the most money per unit of time. So cutting coupons, or hunting down deals is out of the picture. If you have a skill, I think you should spend as much time doing that thing as possible. 40 hour work weeks are the low end. I think the more time a person spends focusing on a very specific thing, the more their mastery of the skill increases. I think it occurs exponentially from 40 to 80 hours. If it take 10,000 hours to master a skill, then you want to get to mastery level at the fastest rate possible because masters are paid the most. This is also a function of how efficiently you manage your time. Working 80 hours but screwing around is less than 20 hours of efficient labor.
  11. whatrichme

    whatrichme Fapstronaut

    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.

    Deleted Account likes this.
  12. 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 are on point
  13. hashalot

    hashalot Fapstronaut

    We're onto something ;)

    Just logged all of my spending of the weekend. It took less than 60 seconds to do it. There's no reason not to take control!
    Deleted Account likes this.
  14. fredisthebes

    fredisthebes Fapstronaut

    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.
    brentberger likes this.
  15. brentberger

    brentberger New Fapstronaut

    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.
    Last edited: Mar 26, 2020
    seb345 likes this.
  16. Finalito

    Finalito Fapstronaut

    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.
  17. Donijuan

    Donijuan Fapstronaut

    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.
  18. HolyPepa

    HolyPepa Fapstronaut

    Guys about what money you are speaking lol?! To tell you the truth I have learned how to save and manage my money only after I have problems with the debts. I was borrowing from the bank a lot of money and didn't manage to pay back my debts. It was a really hard time for me, I was working but the debts were too big for me. I had some problems with the debt collectors. Thank God I look on the internet and found this site These guys helped me a lot, they told me how to write the correct letters and to justify why I'm so late and so one. I have paid for everything and now I have learned the lesson.
    Last edited: Jun 12, 2020
  19. Crownyourdreams

    Crownyourdreams Fapstronaut

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

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