How do you spread your earnings?
1. living expenses
2. extras
3. savings
Also, please state the country you live in, age or group of age you belong to (upto 20, 20-40, 40-60, over 60) and if you are married or not.
Thank you for answering my question !
Answer:
OK. I am married with 2 little children. We fall into the 20-40 age ratio. My first rule is I never write a check, use an ATM, or pay with a debit card with money I do not have. Doesn't matter if I know I'll deposit money the next day to cover, I wait for the purchase the next day. My second rule is credit cards. I only have 2. One is for emergencies only, the second I use for paying certain bills, memberships etc. I also use that one for select purchases on special occasions. I never just buy on credit becuase. I always, ALWAYS, pay the entire balance due at the end of every month.NO EXCEPTIONS.
We have a dual income home. I am a partner with an architectural firm and my wife is a teacher. The first thing I do when we receive our paychecks, bonuses, profit distributions, etc. is to write a check for 10% of that gross that goes to our church. This is our tithe, it is always done, and non-negiotable. Next, we pay mortgages, utilities, bills, insurances, etc. After the bills are paid we know how much we need week to week to buy groceries, gasoline, clothing, entertainment, fun money, eat out nights, etc. This then allows me to distribute money into certain other accounts like savings accounts, the girls college 529 funds, retirement accounts, stock accounts, etc.
The model is always changing. Pay raises, bonuses, time away from work, increases in coverage, etc. all play a part. I keep very close track of everything. When and if things get tight, there is an order in which funds decline in certain areas. If things get tighter, there are other areas I begin to cut things, mostly things we really don't need but have becuase they are nice to have.
That basically our budget. We always stick to it and it has worked for years. We've always been able to save, take nice trips, and plan for the future
Bills, bills and more bills.
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