Good with Money.

rayb · Hot Air Balloon

Good with Money.

Dyany · Senior Member

No, I'm awful with money. Ways I judge it:
1. We have debt though we make a good income and have no children or major medical expenses.
2. I have LOTS of stuff that takes up lots of room. Yes, I use it, but I don't NEED all of it.
3. I find myself saying 'okay' to $20-$30 items/events more often than I should, including when other people say no.
4. People with similar or smaller incomes than mine are a) out of debt and b) buy nice things with cash because they control their spending enough to save up for those nice things, and the biggest of all:
5. In our tithing settlement the bishop basically reprimanded us saying 'you should be able to get by on $30,000 (we make much more than that); what excuse do you have for this debt?' I have rarely felt so ashamed, even though we are full tithe payers and make generous fast offerings.

Part of my problem is that when I really, really want something I am often miserable until I get it. It's VERY difficult for me to just say no and move on. Generally what I want are good things -- practical things for around the house, or gifts for others, etc. -- but I still need to just be able to say no and be happy.

rayb · Hot Air Balloon

So what if you were to get a higher paying job, would your habits just naturally get better?

And the question that bugs me is, so what if you manage to get some money put aside, what do you do with it? How do you keep it safe and so forth?

I just went to the bank, which is why it sparked my question, cuz the bank was charging me 10 bucks a month "service fee" because my platinum savings account was below the minimum balance. When I opened the account they said there were no service fees, but at somepoint they changed their policy and so I've been making 46 cents interest each month, and being charged 10 bucks, for them to hold money for me.

Stoooopid. And you'd think I'd notice this... but the policy changed in JULY!? I am such an idiot when it comes to money.

--Ray

Mahonri · Senior Bucketkeeper

Yes.

We have been in debt up to our eyeballs. We are now out of debt and we spend less than we bring in so that we can save for retirement and for a rainy day.

We have gone through some lean times.

It is a joint effort.

.

rayb · Hot Air Balloon

Mahonri: So are you investing your surplus? Or do you just put it in the bank?

--Ray

DaKnife · Senior Member

We do both. With the exception of our Mortgage, we are currently debt free. We have money going into our savings account, where we have instant access to it if needed and I try to keep two months wages in the savings acct.

Then we have an Internet Money Market account, which gets some of our money and gets a higher interest rate, and is still very readily available. Then I have a Mutual fund that I make a small monthly contribuition to, Mostly to keep it growing though it isn't a high priority.

And then we have our 401k's Janey's from when she was practicing Law is of course substantially bigger, but mine is growing steadily.

I tend to spend money a little freely, but Janey is very good at saving. Whereas my co-workers often joke about their spouses spending extra money. I joke about Janey sticking in some investment where I can't spend it.

We also pay extra towards our mortgage every month, but even if we had the cash to pay it off we wouldn't cause that would result in a significant pay cut. As long as I have a mortgage, the Army pays me a housing allowance that currently just pays the mortgage payment, and come Jan 1 it will have extra.

I'd recommend dumping that checking account for a free one. Try a Credit Union they have less fees and will often pay a bit more in interest. Then see what that institution has in the way of a money market account. Also take a look at a Mutual Fund, mine is with Soloman-Smith Barney, It required a $500 initial investment and I've had the montly payments at anywhere from $25 a month to $200 a month (it was my only investment at the time).

Regardless of where you invest, start out aggressively. That means look for aggressive growth funds, then as you inch closer to retirement start moving the monies to less agressive funds such as the bond markets. Of course the younger you are when you start investing the better.

Oh and if you carry debt, make sure you always pay more than the minimum payment. And for non credit card debts (like cars houses etc) pay a little extra, even just a couple bucks a month will pay off a loan surprisingly quicker. If nothing else, I usually round up to the nearest increment of $5 for example, my Ford Escort had payments due of $211.80 I paid $215 instead and it was paid off a few months early. Plus the round numbers make balancing the budget that much easier (Not that I balance my books, shame on me).

Mahonri · Senior Bucketkeeper

We don't put all of our eggs in one basket.

We have 8 acres of farm land with water rights in Utah, if all stays well, we'll build a home there in the next 10 years. We have a dream of powering it with solar power ...

We have a number of different mutual funds and some bond funds.

We have a few CDs that aren't making much at present.

We have half of an office building and the land it's sitting on. We also own our small home, free and clear.

We have of all things an annuity that will come in handy in 15 years.

We have food stored.

I still need to get a generator and fuel tank for it.

We have money in the bank.

I was in debt in 1998. We are not now.

Cocobeem · Keeper of the Holy Grail

Yes, we're good with money. Mainly MrCoco is good with money and I've jumped on his bandwagon. He paid cash for our house and everything else. He knows how to work and he knows how to do without.

As far as things like bank fees go, he's always on top of all that. Best rate for car insurance, perscription options, which gas station is the best -- he's got it all under control. We put EVERYTHING on the credit cards so we earn interest on the money that month before we pay it off in full. We have savings of about one year salary and the rest is in real estate.

And yes, I buy my clothes at the DI.

PollyAnna · Senior Bucketkeeper

Yes.

Pay tithing and fast offerings first, budget carefully, schedule purchases/needs, say NO to credit cards/consumer debt, modest housing/payment, modest dependable vehicles, maintain and fix what we already have, education.

These are the things we have done to stay out of debt. Elder Ashton's talk on budgeting and getting/staying out of debt is the way we handle out finances... I use a program called Debt Free on Any Income. We haven't ever been seriously in debt, but we have avoided getting into debt by never buying things we can live without on credit and following those principles outlined.

Following the prophet's council to stay out of debt, save and get our family prepared for an emergency has saved us during 4 experiences of unemployment/retraining...

ETA: We have one credit card that we use for everything and pay at the end of the month we use it like a check card and subtract everything we buy like gas, and groceries from the checking balance. We get a check from AMEX yearly that we use at Costco and in 10 years have never paid one dime of interest... I suspect they hate us... but they keep upping our limits. We resist.

-- Edited by PollyAnna at 20:51, 2007-12-22

Duke of Mirth · Profuse Pontificator

My wife is extremely good with money. She can make a dollar stretch further than anyone I know. She finds new clothes for the kids with tags still on at the thrift stores all the time. She finds deals I would never find. She's amazing.