Archives for May 2012

Budget Fridays

  Caution: Budgets Ahead! (Photo credit: 401K)Here on iHearBudgets, my goal is to help people see how awesome budgets really are and how they provide freedom to tell you money where to go. This site was born out of a passion of mine to help people get out of the day-to-day stress of living paycheck to paycheck and not seeing any progress in their finances. I love to talk personal finance and really anything related to money (except politics). If you stop me in the street and ask what I think about 401k's, you better have a Snickers bar handy because it'll be a while! Something I've … [Read more...]

Give Your Money an Identity

When I talk to people about saving money, the conversation always goes one of two ways. One; The person is not saving money at all and gives me a list of reasons why they can't save any money. Two; The person is saving some money from every paycheck, using the "pay yourself first" method (which is awesome, by the way), but when I ask what they are saving for, they give me a blank stare and say "savings". Though I commend the person for saving money instead of blowing it all, I do think that having arbitrary savings is a complete waste of money. Money Without a Name is Worthless Lets say … [Read more...]

Broke vs. Poor

Broke vs. Poor

To say that I have made poor choices with my money is an understatement. When I look back at all the stupid things I decided to do with money it sometimes hurts. By the time I turned age 21 I had wasted over $100,000 in three short years. SICK! If you missed that, let me write that again for emphasis. I WASTED OVER $100,000 IN LESS THAN 3 YEARS BY THE TIME I TURNED 21 YEARS OLD! Now, I won't get too much into that story (maybe another time), I do want to talk about the concept of being broke vs. being poor. Broke vs. Poor I want to lay out a quick definition so as to show the difference … [Read more...]

Budgeting Basics (Part 5): Your Savings Bucket

Budgeting Basics (Part 5): Your Savings Bucket

Don't you hate it when you are cruisin' along, rockin' your awesome budget for the month and you get blindsided by unexpected expenses?! Thing like birthdays, Christmas and anniversaries pop up out of NOWHERE and surprise you! Now your perfectly normal month just got turned upside-down by all of these different occasions. I can't believe the nerve of some people, being born and celebrating it on the SAME DAY, EVERY YEAR. What's up with that? Anyway, if you find yourself in this situation, no need to fear, because you actually already planned for it. Wait…….you did plan for it…...right? What … [Read more...]

Budgeting Basics (Part 4): Why You Should Get a Month Ahead

Budgeting Basics (Part 4): Why You Should Get a Month Ahead

Of the many things I learned from Dave Ramsey, this is not one of them. This is something my mother-in-law suggested we do early in our marriage. She had been the single-parent of 3 children for over a decade at that point, and was (and still is!) an amazing budgeter. Since this is the only piece of financial advice she felt was important to impart to us before we started our life together, I knew to take heed and try to implement this as soon as possible. I would not hesitate to say that this has been the single most impactful decision we have ever made in terms of managing our money. Here's … [Read more...]

Budgeting Basics (Part 3): Setting Up Your Budget and Reverse Engineering Your Goals

Budgeting Basics (Part 3): Setting Up Your Budget and Reverse Engineering Your Goals

Welcome back to the budgeting basics series. Today we are going to get your budget set up.We will set goals by starting at the end and reverse engineering them to make them attainable. So far, you have put together a priorities list to help guide where your money should go and you have tracked your income and expenses so you can see where your money has been going. Now we can start putting the two together in your actual budget. Start With Your Actual Spending They say it takes 21 days to form a habit. That's 21 days of repeating an action without going back to your old way of doing … [Read more...]

Budgeting Basics (Part 2): Tracking Your Income and Expenses

Budgeting Basics (Part 2): Tracking Your Income and Expenses

Welcome back to the budgeting basics series! Last week, we talked about creating a priorities list to use as a filter for where your money should go. I ended the post by suggesting that you should write down your income and expenses to see where you money is going and to compare that with your priorities. I realize that this is no small task, especially for someone who has not ever put together a budget or been honest with themselves, or their spouse with exactly where every dollar goes during the month. I want to break down the process a little bit to make it an easier pill to swallow and to … [Read more...]

EMERGENCY! Or Just Minor Inconvenience?

EMERGENCY! Or Just Minor Inconvenience?

What a wonderful weekend we had. Sun was out, birds were singing and our water heater stopped working….wait. WHAT?! Yup, it finally happened. Owning a home had finally caught up to us and we were about to fork out some serious dough to get our precious hot water back. People had warned us about the "true" cost of home ownership. Many people said homes are a burden compared to renting because of all the repair costs. And it seemed like we were about to prove them right by forking out $1000+ on our first home repair ever. Be Prepared And then I remembered that we had actually … [Read more...]