Incredible book about money in balance

Incredible book about money in balance

Joined: May 20th, 2006, 8:47 pm

February 21st, 2012, 2:36 pm #1

by elizabeth warren, I just love her!

whole book summarized.

if you get your life organized so that 50% of your income is spent on NEEDS

then 30% on WANTS

then 20% on SAVINGS (after debt repayment with the same 20% is complete)

then you can relax. spend that 30% GUILT FREE (that is where I struggle a bit)



although I will say in my younger years I always saved 30% leaving about 20% for WANTS which helpd me get in a great situation early, also because there was no consumer debt ever to pay back.


what do you guys think? anyone live like this, I guess I do.

karen
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Joined: May 25th, 2006, 12:07 am

February 21st, 2012, 3:57 pm #2

But clarify! I assume this person is debt free, mortgage paid, retirement set... 1-2 years worth of savings in the bank...

It sounds like a nice life, but I can't imagine making enough that 50% would cover my needs. Currently my rent is about 40% of my net income.

And are we talking net or gross. I always work in net.
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Joined: June 5th, 2006, 5:33 pm

February 21st, 2012, 5:07 pm #3

by elizabeth warren, I just love her!

whole book summarized.

if you get your life organized so that 50% of your income is spent on NEEDS

then 30% on WANTS

then 20% on SAVINGS (after debt repayment with the same 20% is complete)

then you can relax. spend that 30% GUILT FREE (that is where I struggle a bit)



although I will say in my younger years I always saved 30% leaving about 20% for WANTS which helpd me get in a great situation early, also because there was no consumer debt ever to pay back.


what do you guys think? anyone live like this, I guess I do.

karen
Read it through again and it made sense.
Last edited by TxNet on February 21st, 2012, 5:08 pm, edited 1 time in total.
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Joined: May 23rd, 2006, 5:46 pm

February 21st, 2012, 5:11 pm #4

by elizabeth warren, I just love her!

whole book summarized.

if you get your life organized so that 50% of your income is spent on NEEDS

then 30% on WANTS

then 20% on SAVINGS (after debt repayment with the same 20% is complete)

then you can relax. spend that 30% GUILT FREE (that is where I struggle a bit)



although I will say in my younger years I always saved 30% leaving about 20% for WANTS which helpd me get in a great situation early, also because there was no consumer debt ever to pay back.


what do you guys think? anyone live like this, I guess I do.

karen
that has worked amazingly well for them..
ten percent to God
ten percent to yourself
pay your bills (they never got in debt so managed to do this)
then spend the rest.



Myra in West Texas
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Joined: May 25th, 2006, 12:07 am

February 22nd, 2012, 7:46 pm #5

by elizabeth warren, I just love her!

whole book summarized.

if you get your life organized so that 50% of your income is spent on NEEDS

then 30% on WANTS

then 20% on SAVINGS (after debt repayment with the same 20% is complete)

then you can relax. spend that 30% GUILT FREE (that is where I struggle a bit)



although I will say in my younger years I always saved 30% leaving about 20% for WANTS which helpd me get in a great situation early, also because there was no consumer debt ever to pay back.


what do you guys think? anyone live like this, I guess I do.

karen
and crunched some numbers. If I was exactly the same person making the same money, but wasn't supporting dh or kids (AND I lived cheap) I could do it.

I've never really been able to save much, but now that the kids are bigger and pay for a lot of their own things I can see how it would (and should ) be possible.
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Joined: June 5th, 2006, 5:33 pm

February 22nd, 2012, 10:03 pm #6

When our kids left home, we were finally able to live cheaply enough to save some extra money. And you would think it wouldn't be any different when dd moved back home last fall. But the extra laundry, extra food, she leaves the lights on, and bumps the heat up. It made a difference.

------
The road to success is always under construction.
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Joined: May 25th, 2006, 12:07 am

February 22nd, 2012, 11:17 pm #7

I follow Gail Vaz-Oxlade's advice, usually. It is Canadian and I find her pretty realistic. I use her 'life pie' as a guideline. My budget doesn't balance, but I'm as good as I can be, I think.

It's 35% housing - rent + utilities (I'm at 51%)

15% transportation (I'm at 8%)

10% long term savings (9 %, but my employer matches so I'm saving $300/ month and that is going up in a couple months)

15% debt repayment (0% so I can redistribute that as I see fit :-P For myself I would say that should go into long term savings/ retirement)

25% life - that is everything else. I'm at 31 % on that, too.

It's a bit of a problem since I can't make more and I can't cut back! :-/ But if you are quick at math you can see that my numbers don't add up to 100% I just squeak by every month.

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Joined: May 28th, 2006, 3:48 am

February 22nd, 2012, 11:55 pm #8

I can't remember what it's called but I used to watch it on cable. When we got rid of cable it's one of the things I missed and you can't watch them online in the U.S.
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Joined: May 25th, 2006, 12:07 am

February 23rd, 2012, 12:09 am #9

That is sad! She has two new shows- they are still Till Debt Do Us Part, but one is for people with babies and small children and the other is for people with large mortgages.

No matter how screwed up you are it makes you feel better about your own finances, I think!
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Joined: May 20th, 2006, 8:47 pm

February 23rd, 2012, 12:12 am #10

and crunched some numbers. If I was exactly the same person making the same money, but wasn't supporting dh or kids (AND I lived cheap) I could do it.

I've never really been able to save much, but now that the kids are bigger and pay for a lot of their own things I can see how it would (and should ) be possible.
imagine if dh also brought in the same income as you, then your rent instead of 40% would be 20% making 50% needs quite doable, or if your income just supported one or two people, not five or six.
karen
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