People living beyond their means is just sad, but also pisses me off at their laziness and not caring about the consequences, a budget is so easy to do (even in your head)... but people losing their job and going under that way, that's another story.
Simple rules for financial independence: 1) Don't buy what you cannot afford. If you do not have the money in the bank, don't buy it. 2) Don't buy on credit what you do not NEED.
You need a car to get to work, groceries to eat (stop going out), and a place to call home.
If you have debt besides a car note, especially credit card, pay it off first. If you can't FULLY pay off your credit card every month, have a steady job, but too much debt, go to the bank, and get a low interest loan (if you can) and pay everything off, there are programs for this, then pay that loan every month on time.
Take 1/2 your take home (after tax) income, and put it to rent/utilities, car note, and food. If those 3 things are MORE than 1/2 your income, time to find a cheaper place to live, a cheaper car, and start buying cheaper food. The other 1/2 of your income and put it in the bank/savings. Take your savings and half that (so 1/4 of your take home money), this is your allowance, buy whatever you want with it, the other 1/4 of your money is savings, for car maintance and other stuff. About 1 of every 4 months you will have to spend this 1/4 on something (car tires/brakes appliance breaks, whatever), trust me, shit happens.
So if you bring home $2000 a month (and no debt): $1000 for rent + groceries + utilites + car note (and insurance) $500 for personal spending $500 a month savings/rainy day fund
After a year if you put away 500 75% of the time, you will have almost $5000 in the bank. After 2 years of this, start putting some into a roth IRA if you have no retirement set up and have no debt or car note by this point.
If you can pay off your car, you now have only rent/utilities, and food you have to buy, you now have more money for savings and personal spending.
I followed this plan right out of college, and after a year I was able to buy a motorcycle cash, after 2 years had over 10g's saved up, all on a salary of ~30k.
Young people tend to spend more than they have, they see a check of $2000 and flip out and spend it, not realizing that $500 is all they should be able to spend. My parents never taught me this, but I will be teaching my kids.
P.S. NEVER buy something on a credit car unless you have the cash in the bank and will pay it off the next month, I have never once had a cent of interest on any of my credit cards, think before you buy, do you really "need" this item to survive.
_________________ -- .:Splak|StackableNut --Cornholio wrote: blah thats nothing, i built houses for pirates, then do pirating myself. Then I shoot my self and perform bullet removal surgery on myself. After that I go to boot camps to train kids to kill. Then i go and fight on the Iraq war for both sides. After all i go later and drink some 7up cause ill be thirsty as shit.
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