Two checking accounts-Budget
Member writes:
_______________
MONEY PROF responds:
If you mean "scratched out" budget IT WON'T WORK". ( I personally guaranty you it will not work over time). I'm 100% sure.
IMPORTANT: I'm positive, A 100% POSITIVE. THE ABOVE WILL NOT WORK.
If you mean you followed my advice below you have a chance:
( a very high chance if you buy the "excuses are BS" thinking)
The first step is to promise yourself you will always have a budget.
The easiest way to do that is to have two separate checking accounts. One (called household) is for bills that you don't have much control over, example: Savings, phone, electric, rent, car payment, car insurance, plates for car, etc.
The other is for credit cards, ( which I highly recommend you don't use unless you make payment before you use the card) food, beer, partying, gas, restaurants, clothes, gifts etc.
You compute what the bills are per week and deposit that total amount into household acct. every week, so if car insurance is $520 a yr. then you deposit $10 a week into household acct.
This sound like a pain, but it isn't as you would only compute this a few times a yr. once you came up with what the weekly figure needed to be. Best way to deposit is "direct deposit" if where you work offers this option.
After the correct amount is deposited into household acct., the balance goes into the other acct. The rules are simple, you can only write checks out of household acct. for the items that you listed as weekly deposit items. No excuses to yourself.
In the other acct. the only rule is save that weeks gas money, save spending money, and don't bounce a check.
The important part is the mental attitude. For example "what if I don't have enough money in the other checking acct. to go out with friends for drinks and dinner," then stay home and eat spaghetti. ( because you should have saved for this in advance)
No, not take out restaurant spaghetti !!!!!!!! :)
The box of spaghetti you bought on sale at the Supermarket.
"Have my budget set up based on my new income. Calculating my montlhy bills
combined with a food and gas budget will eat up my entire monthly pay check.
All extra job cash will be used to help furnish the new apartment, or as
extra savings, or as some extra spending $."
_______________
MONEY PROF responds:
If you mean "scratched out" budget IT WON'T WORK". ( I personally guaranty you it will not work over time). I'm 100% sure.
IMPORTANT: I'm positive, A 100% POSITIVE. THE ABOVE WILL NOT WORK.
If you mean you followed my advice below you have a chance:
( a very high chance if you buy the "excuses are BS" thinking)
The first step is to promise yourself you will always have a budget.
The easiest way to do that is to have two separate checking accounts. One (called household) is for bills that you don't have much control over, example: Savings, phone, electric, rent, car payment, car insurance, plates for car, etc.
The other is for credit cards, ( which I highly recommend you don't use unless you make payment before you use the card) food, beer, partying, gas, restaurants, clothes, gifts etc.
You compute what the bills are per week and deposit that total amount into household acct. every week, so if car insurance is $520 a yr. then you deposit $10 a week into household acct.
This sound like a pain, but it isn't as you would only compute this a few times a yr. once you came up with what the weekly figure needed to be. Best way to deposit is "direct deposit" if where you work offers this option.
After the correct amount is deposited into household acct., the balance goes into the other acct. The rules are simple, you can only write checks out of household acct. for the items that you listed as weekly deposit items. No excuses to yourself.
In the other acct. the only rule is save that weeks gas money, save spending money, and don't bounce a check.
The important part is the mental attitude. For example "what if I don't have enough money in the other checking acct. to go out with friends for drinks and dinner," then stay home and eat spaghetti. ( because you should have saved for this in advance)
No, not take out restaurant spaghetti !!!!!!!! :)
The box of spaghetti you bought on sale at the Supermarket.
posted by MoneyProf at Sunday, February 27, 2005
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