Budgeting experience

[Anonymous]

Hello guys

I understand that budgeting is very personal, but maybe it work better for some people and to others don't.

For example, I have used, last year, to spend only 40% of my income to fixed expenses and 20% to invest + 10% to savings for future + 20% to fun + 10% for travel ...but to anothers, the role of 70/30 where people spend only 70% of your income to fixed expenses and 30% to general savings, investing and things to fun works. Budgeting is good to mantain a good score with not acumulating debit, for exemple. What's works for you?

[Nomad3]

10% 401k

5-10% savings variable

The rest goes to "fixed" expenses (air quotes)

DS eats better than us, to quote my favorite movie: spared no expense! My favorite investment

[Anonymous]

I use reverse budgeting and invest 25% of my income into my brokerage account to buy shares of dividend stock, another 6% of my income goes towards extra principal payments toward my mortgage and another 5% goes to my savings.  Currently am not putting money aside for vactions and that is something I'm working towards with my reselling side hustle.  

[Revelate]

I go through phases: right now I'm basically in drunken fiesta mode with expenses coming out of the wood work that I wasn't anticipating... fortunately I'm back to multiple incomes so should be able to survive it as long as I keep my poop in a group this year and just start nuking my debt from orbit for all that makes little sense with the tax code and mortgage interest deductions.

Anyway I bugetted for fixed costs, some nice to haves which I marked basically as essential since I wasn't cashflow impaired, and then a slush fund per month that was basically whatever I wanted to spend it on, didn't matter.  

Everything above that went into investments or debt of some sort.  I didn't personally use percentages, I didn't like being that constrained frankly and with my income being somewhat variable (second gig didn't pay anything at all for something like 5 months for example) but would track my cashflow and if it dipped below comfortable levels some of those not quite essential expenses (Netflix et. al) got pared back.

[iced]

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@Anonymous wrote:

Hello guys

I understand that budgeting is very personal, but maybe it work better for some people and to others don't.

For example, I have used, last year, to spend only 40% of my income to fixed expenses and 20% to invest + 10% to savings for future + 20% to fun + 10% for travel ...but to anothers, the role of 70/30 where people spend only 70% of your income to fixed expenses and 30% to general savings, investing and things to fun works. Budgeting is good to mantain a good score with not acumulating debit, for exemple. What's works for you?

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Paycheck Savings (37%):

401k (Roth): 14% (minimum that allows me to still cap annually assuming no bonuses)

ESPP: 10%

HSA: 4% (with employer contribution allows me to cap)

Traditional Savings/After-tax brokerage: 9%

Expenses (18%):

Housing: 12% (includes an additional principal payment on mortgage every month)

Car: 4%, but this will drop to 1% in a year

Misc expenses (gym, cable, etc): 2%

Another 30% or so goes to taxes and that last 15% is my discretionary spend for eating out, various purchases, and such. If there's a surplus, I'll toss it in savings for a rainy day.

I also keep all of my annual RSU and bonus income as additional savings and do not factor them in toward any living expenses. 

Eyeballing it, I'm probably around 45% savings, 30% taxes, 12% living expenses, and 13% miscellaneous/discretionary spending.

[KLEXH25]

I've had a strict budget for years. Typically I calculate my expenses first, set aside 20% savings (minimum), and then the balance is what I have left for food, gas, and fun. Pretaxes, I save 6% for 401K, although I'd like to save more. Currently, my split after taxes:

• 44% Bills (rent, car payment, bills, insurance)
• 24% Savings
• 32% Spend

Without the car payment, it would split almost evenly 3 ways. But in reality, I would throw that payment towards retirement and savings, and keep my spend the same.

[Anonymous]

Funny references on youtube, on Jurassic Park movie

[Anonymous]

UOW, really?

It's very commitment, need cold brain to do it, but I know that is necessary

[Anonymous]

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@Revelate wrote:

I go through phases: right now I'm basically in drunken fiesta mode with expenses coming out of the wood work that I wasn't anticipating... fortunately I'm back to multiple incomes so should be able to survive it as long as I keep my poop in a group this year and just start nuking my debt from orbit for all that makes little sense with the tax code and mortgage interest deductions.

Anyway I bugetted for fixed costs, some nice to haves which I marked basically as essential since I wasn't cashflow impaired, and then a slush fund per month that was basically whatever I wanted to spend it on, didn't matter.  

Everything above that went into investments or debt of some sort.  I didn't personally use percentages, I didn't like being that constrained frankly and with my income being somewhat variable (second gig didn't pay anything at all for something like 5 months for example) but would track my cashflow and if it dipped below comfortable levels some of those not quite essential expenses (Netflix et. al) got pared back.

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OMG LOL at "Drunken Fiesta Mode". I feel the same, but with some vacation and event splurges that I really haven't done since my BK. Those will have all occurred by the time summer begins, and then I'm going into serious spending lockdown. 

I've always found budgeting every item and tracking every dollar to be exhausting, so I've instead come up with amounts I'm comfortable putting into retirement (12% currently) and into savings (12.5% of take home), and feel okay spending the rest.

After my second half of 2020 in mega economy mode & knocking out debt (all 1.99% and 5.99%) I need to see what I can do about getting those retirement and savings %'s up in 2021.

I honestly should have some kind of side hustle as well. My barely full time job would easily allow for it.

[Anonymous]

I just spend Money until the Bank calls and says that I'm out of it.

Seriously though I don't really have a "budget" per say. Whatever isn't spent on fixed expenses, such as rent and bills just sits there waiting to be spent on whatever I feel like doing. I only put a small amount into a HYSA/CD's just to make s few pennies more that standard saving.

Recently though I've considered getting into Investing in Stock etc. and will open a Schwab acct. soon. But have no plans to put much there as I wouldn't see any of it by retirement, and have no heirs. 

I just live life for now.