Author Topic: Best Spending Practices for People that Lack Discipline.  (Read 2098 times)

Offline shwarmabob

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #30 on: June 07, 2018, 02:22:26 PM »
1) Set up auto transfer x amount to a savings account every month
2) go to a financial advisor/ counselor together with your wife so you are both on the same page and set realistic goals

Offline keepingabudget

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #31 on: June 07, 2018, 02:48:14 PM »
Would the GC suggestion work?

I'm concerned about this, so no.
Perhaps debit is really the way to go.

Someone should point out the obvious: GCs have an inherent risk of getting lost or stolen, especially if you're using them all the time on small expenditures on everyday shopping trips. And that's besides the risk of fraud.

Offline keepingabudget

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #32 on: June 07, 2018, 02:52:03 PM »
AMEX offered a limit on AU's card, might be an option.
But again won't you just take out the Primary card if the AU is maxed!?
Stick with Debit/cash.

The limit is not for me.
I control my spending and I'm generally thrifty. I can hold the primary, but I know someone that had issues with an Amex card allowing more than budgeted. If someone has experience otherwise, I'd appreciate it.

Offline cozmohoot

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #33 on: June 07, 2018, 02:59:34 PM »
I'm concerned about this, so no.
Perhaps debit is really the way to go.
If they are registered there is probably more protection. Just a pain to register many...

Offline keepingabudget

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #34 on: June 07, 2018, 03:13:32 PM »
Have you put saving on auto pilot?
IE. X goes to 401k, Y goes to IRA, Z goes to savings account every paycheck?

Commonly referred to as the pay yourself first budget.

1) Set up auto transfer x amount to a savings account every month
2) go to a financial advisor/ counselor together with your wife so you are both on the same page and set realistic goals

I should find a financial advisor because I don't do any of these things.

Offline farmbochur

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #35 on: June 07, 2018, 03:39:47 PM »
Not sure what role a financial advisor plays into it. Not too hard to set up an auto rebalancing account with most any low cost brokerage firm (Schwab, vanguard, etc...).

People tend to over complicate personal finance (the "experts" are likely behind this b/c they profit when the masses feel helpless). Bottom line is that if you put $100-200 per month into a well diversified fund, you will retire a millionaire with nearly 100% probability.
Risk is opportunity

Offline sb613

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #36 on: June 07, 2018, 03:49:28 PM »
I started using YNAB few years ago and itís very helpful with personal budgeting.

For me the biggest advantage was that I was finally able to put all credit cards and gift cards balances together. The idea is to treat credit cards like a debit card.

Offline incendia

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #37 on: June 07, 2018, 05:09:13 PM »
Every time you and your get paid the first thing is to put a fixed amount of money into a high interest savings account 

get a small notebook and write down everytime you spend money, one for you one for your wife

your wife should use a debit card or cash


Offline Sport

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #38 on: June 07, 2018, 06:19:14 PM »
Yes, a few. She's on board with good suggestions but she doesn't wanna deal with cash.
Does she pay the bills? If not let her handle that for a few months so she sees where all your money is going.

Offline Sport

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #39 on: June 07, 2018, 06:25:47 PM »
Have you put saving on auto pilot?
IE. X goes to 401k, Y goes to IRA, Z goes to savings account every paycheck?

Commonly referred to as the pay yourself first budget.
1) Set up auto transfer x amount to a savings account every month
2) go to a financial advisor/ counselor together with your wife so you are both on the same page and set realistic goals
Every time you and your get paid the first thing is to put a fixed amount of money into a high interest savings account 

get a small notebook and write down everytime you spend money, one for you one for your wife

your wife should use a debit card or cash
These suggestions are great but only work if your committed to a budget. If spending is done with out any cheshbon this won't help to much.

Offline aygart

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #40 on: June 07, 2018, 06:39:26 PM »
There is an organization called Mesilah which helps people set up a financial plan.
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Offline smart man

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #41 on: June 07, 2018, 07:13:41 PM »
Bottom line is that if you put $100-200 per month into a well diversified fund, you will retire a millionaire with nearly 100% probability.
Gotta love compound interest :) Dunno why there aren't more millionaire's around.
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Offline farmbochur

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #42 on: June 07, 2018, 07:14:58 PM »
Gotta love compound interest :) Dunno why there aren't more millionaire's around.
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Offline hvaces42

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #43 on: June 07, 2018, 07:30:35 PM »
There is an organization called Mesilah which helps people set up a financial plan.
Or Debtors anonymous, where they may tell you to cut up cc's.

I too lack the necessary discipline and we learned to work on an envelope system with fixed amounts coming out of our monthly income for things that we know that we may need money for in the future. Its not a perfect budget by any means, but it has worked for us. We have an envelope for Camps, Auto Repairs, Home emergency repairs, Childrens' activities, vacation, etc. Its a great feeling that when you need or wants something that fits in one of the envelope categories you go to the envelope and you have the money there. Remember a few years back we had a chimeny issue. Without the few hundred dollars saved in the home repair envelope we would never have been able to pay for the repairs.   
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Offline Ergel

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Re: Best Spending Practices for People that Lack Discipline.
« Reply #44 on: June 07, 2018, 07:46:46 PM »
Gotta love compound interest :) Dunno why there aren't more millionaire's around.
At $100/month, you'd need a 11.5% annual return to be a millionaire after 40 years. Definitely possible, but not guaranteed.
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