LIVE on a BUDGET

what the 30-30-30-10 rule, mike?

30% of earnings to living expense

30% to savings

30% to vacations (??? I do NOT agree )

10% giving back (usually tax deductable)

Run YOUR numbers on this and see where you stand.

While this is a great concept, it is an impossibility for most people!

30% of your earnings will cover your living expenses??? In most everyone's dreams!

Karen

they DOn't make sacrifices to get to the Next level OR PLAN for the future.

EVERYONE thinks/acts and spends BEYOND their means and wants to party and live life 'bcause they deserve it', NOT bcause they've EARNED it.

MOST are in DEEP credit card debt and late on MOST payments and only pay Minimum payments on credit cards, BUT, STILL SPEND and using c.cards.

I see it ALL the time, they're upside down on house, cc debt 20-30k or more and STILL taking Vacations and putting it on C cards.... UNBELIEVABLE!!!!

Seems SOCIETY has a sense of ENTITLEMENT and they WANT/DO try and LIVE in a DREAM world of shopping and vacationing at the risk of BANKRUPTCY, Foreclosure and losing EVERYTHING...

"I" DON'T get it....?

I do NOT agree with some of the 30/30/30/10 as mentioned above, but, you can ADJUST the 30% VACations and make it work!...OH NO, but, I Have to Drive This and I have to Live Here does NOT FLY until you EARNED it.

It's not How much you make, it's How much you KEEP = NO STRESS.

If the 30/30/30/10 is not possible, here's an alternate budget I learned about at the Millionaire Mind Intensive event I attended in 2012. This was set up to show us how you can fund passive income opportunities to replace your J.O.B.
Take your paycheck and split the money as follows:

55%- living necessities ( If you can't live on this, the suggestion is to DO SO! Make adjustments i.e. Brew your own coffee, eat out less, buy used, etc. This alone showed me where I was wasting money I couldn't afford to waste. )

10%- Long Term savings ( Use for major expenditures, vacations, cars, pay down debt.)

10%- Financial Freedom Acct ( This is the money you will use to invest in passive income streams) Invest for passive income. Only spend interest and not principle.

10%- Furthering Education ( You have to keep learning cause things change always.)

5%- Charitable contributions ( This can be increased to 10% by subtracting 5% from your Living Necessities column. Don't forget some are tax deductible. )

10%- Play ( My favorite ) We were taught that there is more to life than work ( Even Dean says it too.) This money is to be spent on YOU every month. ( It can be saved for no more than 3 months then it must be spent. Your life will thank you )

If you think this is impossible for you, start with just $1.00 every paycheck and split it this way. Double it to $2.00 the next month then repeat the double every month. You'll see how to better budget your money and the benefits of doing so.

I hope this helps

Andy Sager
DG's AndyS
CFIC and IE member

30% of earnings to living expense

30% to savings

30% to vacations (??? I do NOT agree )

10% giving back (usually tax deductable)

Run YOUR numbers
My numbers is let's go with $1K
$200 food
$800 saving
my number will 20/80

We, as a society, ( in many cases) have lost the understanding of EARNING your keep. We are entitled to nothing yet act as if we are entitled to everything. (To quote Dr. Phil: "How's that working for ya?") I'll tell you, it's what's got you where you are today. If you are struggling, this, most likely, is why. There needs to be a strong attitude adjustment from within if you want to change your situation.
You said it straight and correctly: "It's not How much you make, it's How much you KEEP." If you can't keep enough, you need to MAKE more without adding more expenses. It's that simple. Make adjustments.

Andy Sager
DG's AndyS
CFIC and IE member

Live within a budget, and not beyond one's means.....This was one of the reasons for the Real Estate collape in this country....

As Suze Orman Said " If you can't afford it.........you don't need it "

Regards,
Sharon

30 percent for all living is in our dreams, and not easily achievable. 30 percent for vacations silly!

I know it's possible to follow what was written above.
I filed for bankruptsy years ago. I was young and got caught up in the easy credit thing, then got laid off from the job I had at the time. I vowed to never go into debt again, unless it makes me money, i.e. a hard money loan to flip a house or financing a rental property (always seller financing). I don't need a credit report for either of these. I don't even know if I have a credit score or not. Haven't pulled a credit report for years and I don't ever intend to.
If I can't pay cash for it, I don't buy it. I would rather pay myself the interest than pay the bank.
Like Matt Larsen says, "I love the one payment plan".
All you need is discipline.
The reason I and many others here got into real estate to begin with, was so we can live under our own terms and have the freedom we want, without the limitations of a set income?
If you can't do it this way yet, keep making more money so you can.
Like the saying goes, "Say you can, Say you can't, either way your right".

Jim

If you do not have to pay a mortgage or rent that would work. I agree too many people over spend and go deep in debt thinking they need to keep buying things. They are caught up in trying to live a celebrity lifestyle and no one is taught in school how to use money as a tool. Most parents don't teach it either. - - - - 30% for vacations - - - - I don't think so, not me anyway. My vacation was a trip to Phoenix Az to the Firesky Resort for the EDGE 2013 event and that is actually a write-off on taxes for business conference trip and training. My budget is income minus 10% to feed the poor and charity followed by the roof over my head and utilities. Also $100.00 per month grocery, car insurance and health insurance, property taxes, auto maint., auto fuel etc. Things have gotten more expensive and continue to rise. Aside from my trip to Phoenix I have not been on a vacation in so long that I can not remember it. I do need to make an adjustment as in making more money and I will. I have one more year to go and when I turn 66 on June 3rd 2014 I can make an obscene amount of money and it won't effect my social security benefits. I have worked hard all my life for everything I have ever gotten and no one contributes to my support. I just added a 3rd income stream so the tide is changing and things are improving.

In California, average rent is $1,500/month; minimum wage is $8.00/hr... Do I need to say more?!

"It's possible I know it's possible to follow what was written above.
I filed for bankruptsy years ago. I was young and got caught up in the easy credit thing, then got laid off from the job I had at the time. I vowed to never go into debt again, unless it makes me money,"

IF You CAN"T afford it- You cant afford it...its OK!!!

STOP putting yourself and FAMILY future in DEBT/foreclosure/bankrupt TRYING to live like EVERYONE else...YOU are NOT them.

IF you have a roof over your head, Food on the table, and electric .. YOU are doing GOOD and getting by.

I'VE slept under bridges for over 3 wks,no car, nothing except what I had in a backpack, had Rats wake me up, homeless, hungry and still in school and working @ $1.35 hr...WOW.

After yrs of having jobs, I knew I needed and DESERVED More!

WHEN will YOU Change?

If you can barely make ends meet... Do you have any idea how many people live paycheck to paycheck just paying for their roof, electricity, water, food, car to go to work, phone?
Try telling them to live on a 30/30/30/10 budget!

You DO what you Have to do. NO eating OUT. Dont even own a car, take bus, eat cheap and GET BY or else end up like the rest!

ENTITLEMENT

Similar to Andy's post
http://www.kiplinger.com/article/spending/T050-C006-S001-cost-of-living-...

yes it is tough boy, right now I am just starting to use a budget and I am shocked at how much i spent eating out, which i have greatly curtailed, but can get better, and will be saving this month which i havnt done in a long time, i have been using the budget that i got online i forget the persons name he is a well known author that my life coach told me to get, oh actually he emailed it to me but there are so many online it doesnt matter, and also writing down every expense in a pocket notebook you carry w/yoiu everywhere to see w/all the $ is going right.

IT doesnt matter how much you make but how much you keep right

Out of the Opulence of the 80's and 90's,into the uncharted territory of the New Millenium,Now is the time to live mostly in an old-fashioned way. So, go live it up when it's your birthday, then all the other days in the year, cook your own food, brew your own coffee/tea,do your own hair & nails, buy from the second-hand stores, buy on sale- check clearance rack first, walk or take public transport as much as possible,go to the matinee movies, or rent movies, combine car trips to utilyze gas/maintenance, try to carpool, if you don't know how to cook- take lessons from someone,grab a recipe and enjoy the results of treating yourself to delicious & healthy food that you made for you and to share with others if possible. The main point I want to get across is to try Not to spend ALL your resources of time, money & pursuits on YOURSELF but try to think of your RESOURCES as Gift! YOU will feel better, look better and stay WITHIN BUDGET!!