Question by Al Kessel: Need advice on personal finance / budget setup…pay yourself first approach.?
All,
My wife and I have our checks direct deposited. We’re maxing our 401K’s and maxing IRA’s with our bonus money. We have several accounts setup for online savings to match up with various lines in our budget…i.e. vacation is one savings account that is funded on a monthly basis from our main online checking account.
I think the last piece of the puzzle is getting one account with a debit card for myself and another for my wife. We would fund these weekly for any $ we would spend during the week. All other bill type money would come out of the other accounts. I figure this would be the last step to make sure there are no surprises.
Is anyone else using this approach?…if the $ isn’t in the debit account, we won’t spend it.
Best answer:
Answer by The Professor
Sounds like you have everything under control. Put the last piece of the puzzle in place (and yes, many people handle funds this way).
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It would appear to me that you are over-analysing your $ $ $ $ . You have your ducks in a row to assure that your future is as secure and you can make it at this point in time.
You don’t state your age - but I’m guessing baby-boomer or else you just missed that era.
Personally, I wouldn’t want yet another two accounts to balance monthly. You seem to have a handle on your priorities and your spending etc - I would simply use my regular checking account for debits as well.
So as to not overstep and both you and your wife spend at the same time and therefore overdraw the account - allow “x” number of dollars per use for each of you and set an amount ($ 100) - that if over that amount is being spent by either of you it must be discussed prior to the purchase.
Good luck … and happy future! You’re on a good track!
Yes, very similar to the software I use, http://www.expenseregister.com . They have a budget tool where you allocate money for different expense categories, including Savings!! I have been using that… so I dont physically move my money into different boxes, but it is the same.
You completely should know how much money is going out on a monthly foundation, compared to how a lot cash you’re bringing in. You will need to carry on prime of your finances. Set up your payments and keep track of your expenses. Figuring out the numbers will help you make sensible economic decisions. The little issues add up rapidly, the pack of gum at the try counter, that bottle of water, and a fast food meal can easily set ck $10. Maybe not a big deal on the time, however over the course of a month it might mean the difference between stressing over a bill as an alternative of a relaxing night time at the movies.