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Budgeting for Lazy People
fool.com — Procrastinators, you can rejoice: There is such a thing as a budget that you can stick to. What's the secret? Take every shortcut possible.
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- hotpuck6, on 07/15/2008, -2/+38Budgeting for the Lazy:
Income > Expenditures = Win!- ho0ber, on 07/17/2008, -0/+1That's always been the easy part. The hard part is calculating your expenditures.
- known, on 07/17/2008, -0/+1ROI = Revenue - Expenditure / Investment
- echodots, on 07/15/2008, -2/+59Very good, I'll start on this tomorrow.
- smitas, on 07/16/2008, -7/+1Lazy people budget a lot because they are lazy. What more budgeting they need?
- greenlant00, on 07/16/2008, -4/+12way too long to read
- disrupter, on 07/17/2008, -0/+15Maybe you should check out 'Reading for lazy people'
- wfiupublicradio, on 07/16/2008, -8/+3budgeting for lazy people in 2 steps:
1) open credit card
2) get into massive debt - Fatherspirit, on 07/17/2008, -2/+4'Step 5: Stop mindless overspending'....... KILLJOY!
- meruru, on 07/17/2008, -1/+45Budgeting for the lazy:
Use only cash
Take out what you can afford for the week on Monday
If you don't have enough money in your wallet for it then you can't afford it- bosssmiley, on 07/17/2008, -1/+6Oh so very Dugg.
Sometimes the simple plans are the best. - tasine, on 07/17/2008, -0/+2Not only does this work for the truly lazy, it will also work for the really dumb who wouldn't know a budget if it bit them. :)
- Ph34rb0t, on 07/17/2008, -1/+8I just set up automatic payments for all my recurring bills (mortgage, insurance, phone/net, sat/cable) and automatic transfers to separate accounts for various items (food, emergency, savings, disposable) To ensure I'm never caught short on the 'food' category, I overestimated when I initially set up the transfer on purpose, so there is a little slush fund as a result, maybe I'll want some elaborate golden eggs someday.
I have everything scheduled to take place on paydays so I don't need to concern myself with it again. I look at the accounts maybe once a month as a result.
A little preemptive work lets you be super lazy later on. - captZEEbo, on 07/17/2008, -2/+1seems like a good way to never have any extra money saved up for an emergency
- GRTWHT, on 07/17/2008, -0/+4In case you didn't get the basic idea: you don't pull out all your money every Monday, you only pull out a small amount that you've decided you can afford to spend - the rest is saved!
- rockefeller2, on 07/17/2008, -2/+1The idea sounds good but I find that I waste too much time paying for things with cash. Filling up your gas tank with cash is a pain in the ass, you have to take 2 trips to the clerk, one to pay, the other to get your money back. Going to the ATM is a waste of time. Paying bills with cash is a waste of time if I have to drive all over town to various offices. Plus carrying all that cash around is a pain in my ass (literally), I hate carrying a fat wallet in my back pocket.
- mahdaeng, on 07/17/2008, -0/+1[[I find that I waste too much time paying for things with cash]]
Yeah, that extra 30 seconds per week really adds up.
[[Paying bills with cash is a waste of time]]
Who pays bills with cash? That's what checks or automatic payments are for. I think you're missing the point of meruru's comment.
[[I hate carrying a fat wallet in my back pocket]]
Use larger bills. - rockefeller2, on 07/17/2008, -0/+1Nobody wants to break larger bills, they look at you like a criminal.
Keep using cash, I'll use my credit card and pay it off at the end of the month.
- mahdaeng, on 07/17/2008, -0/+1[[I find that I waste too much time paying for things with cash]]
- AchaIemoipas, on 07/17/2008, -0/+2Tip for people who tend to lose track:
Divide your cash in enveloppes (or any other kind of container).
1 enveloppe for groceries, 1 enveloppe for utilities, 1 enveloppe for savings, etc.
Takes 10 minutes and you'll never overspend, or at least, you'll be aware that you are overspending.
Anything left in your enveloppes after the week/month? Put it in the bank.
Easiest way to keep track of your spending and to save.
- bosssmiley, on 07/17/2008, -1/+6Oh so very Dugg.
- DivisibleByZero, on 07/17/2008, -4/+2My biggest financial downturn lately has been remembering what day of the month it is, and which particular bill needs to be paid. It's not that I don't have the money. I do. It's just that I never freaking remember to pay things on time and get hit with late fees.
- tasine, on 07/17/2008, -1/+3I solved this problem for me by having bank drafts pay my bills. (I am not a banker and may not use the correct terminology, but hopefully you will understand what I mean.) Bank is billed, they pay the bill, they record it in my records, deduct the amount from my account, bill always paid on time. Needless to say, your bank account must hold enough to assure each payment will be good. Good luck!
- trejrco, on 07/17/2008, -1/+3I prefer to set up my bank to auto-pay - so I still retain ready control.
Auto-draft has always seemed a bit of a kludge; having to set up every bill to know about your bank. I just tell my bank about all my bills (in one spot, centrally managed, free) and *bam* they are all auto-paid.
- trejrco, on 07/17/2008, -1/+3I prefer to set up my bank to auto-pay - so I still retain ready control.
- ThePhotoBoy, on 07/17/2008, -0/+2I had this problem too. Online bill payment via my bank made this easy. Try it.
- brettg102, on 07/17/2008, -0/+1Microsoft Calender.
- DivisibleByZero, on 07/18/2008, -0/+1Yeah, I've had a few utilities over the years that don't accept the auto bill pay from my bank, so I end up with this kluge of some payments coming from there and some coming from whatever their proprietary 50% "convenience fee" *****.
The real problem is that I've moved around a lot for the last couple years. It's what happens when you move across the country to take a new job that you end up hating. Thankfully I found another one that didn't require such a long distance move and is an excellent job.
- tasine, on 07/17/2008, -1/+3I solved this problem for me by having bank drafts pay my bills. (I am not a banker and may not use the correct terminology, but hopefully you will understand what I mean.) Bank is billed, they pay the bill, they record it in my records, deduct the amount from my account, bill always paid on time. Needless to say, your bank account must hold enough to assure each payment will be good. Good luck!
- Olain, on 07/17/2008, -6/+3I'll read this later!
- zacharytelschow, on 07/17/2008, -1/+18Budgeting for lazy people:
-Contribute the maximum that your employer will match to your 401k
-Make sure your housing costs (mortgage or rent) eat up no more than 1/4 your gross monthly income
-Don't buy a car that costs more than 1/4 your gross annual pay (current annual pay, not expected or hoped for)
-Pay down any debts and don't carry any credit card balances. Forget the teaser rates, have an emergency card but otherwise chop the plastic (minus a debit card for gas, groceries, etc).
-Just because its called disposable income doesn't mean you have to dispose of it.- ThePhotoBoy, on 07/17/2008, -0/+4Great advice, I live by these rules. One exception though, I believe the only car you can truly afford is one that can be paid for with cash.
- zacharytelschow, on 07/17/2008, -0/+3I would agree with buying a car paying cash (something my father-in-law does), but as a recent college graduate money on hand is rather short. Instead, I bought a new Ford Focus (huge rebates for recent grads) at a huge discount and will drive it until the wheels fall off. Long term, probably one of the cheapest solutions out there and also allows me to have a vehicle with minimal maintainence/repair costs while I get my financial feet under me.
- koloth44, on 07/18/2008, -0/+0Chop the debit card, keep one reward credit card with a reasonable limit and pay it off each month.
I work for a bank and we make a TON of money off of overdraft fees from people using their debit cards too freely. With a debit card you need to have the money available RIGHT NOW, whereas with credit you just need to have it all at the end of the month, and only make one payment from your account.
- ThePhotoBoy, on 07/17/2008, -0/+4Great advice, I live by these rules. One exception though, I believe the only car you can truly afford is one that can be paid for with cash.
- bysse, on 07/17/2008, -0/+1Budgeting takes way too much time. First i pay all my bills. What's left goes to my savings account and every week i get automatic transfers to my VISA card account. Dead simple and it works for me...
- queenkv, on 07/17/2008, -1/+5I'm also a huge fan of the SNL's Debt and Money Management Program presented by Chris Parnell.
http://consumerist.com/consumer/clips/snl-skit-don ...- userperson, on 07/17/2008, -0/+1That's confusing.
I also found your link confusing, it was too long to click: http://is.gd/VZK
- userperson, on 07/17/2008, -0/+1That's confusing.
- rockefeller2, on 07/17/2008, -1/+4Balancing a check book is an obsolete skill these days. If you can access your bank account on the internet at any time, then what's the point of balancing a check book?
- tasine, on 07/17/2008, -2/+0Whoa, pardner! People who live in urban areas can readily access their account online, but not all people live in urban areas. I, for instance, live in a rural area and our banks are not online. I could put my money in a bank 35 miles away and be able to bank online, but why should I do that? I prefer to deal with local banks. I learned to add and subtract many, many years ago and balancing a checkbook is a real necessity, primarily to be sure your account is not being messed with by unauthorized people. For many, many people, banking online is not feasible ..... or possible.
- zacharytelschow, on 07/17/2008, -0/+3"If you can access your bank account on the internet at any time, then what's the point of balancing a check book?"
Cause if you write a check on Monday it might not post until Thursday, which could cause you to overdraw if you wrote more checks on Tuesday or Wednesday.- rockefeller2, on 07/17/2008, -0/+1Well, I just keep about $1000 minimum in my checking account. If I write a big check, I go to my account online and make sure I have enough to cover it. Still, no need for me to waste time balancing a checkbook. Maybe you just don't have a large enough buffer. Maybe you're maintaining your accounts too close to $0, so you have to waste your time balancing your checkbook.
- zacharytelschow, on 07/17/2008, -0/+1I wouldn't contend with that claim. Recent college grad, dirt poor, a buffer about the size of my car payment most of the time.
- algaeturd, on 07/17/2008, -3/+2Great but I have issues with taking financial advice from a website called 'fool.com'. I don't care if it's an acronym or supposed to be ironic. It just seems wrong.
- ticktock4, on 07/17/2008, -2/+1Completely agree. A very poor article.
- mahdaeng, on 07/17/2008, -0/+2Someone's never heard of the Motley Fool, I take it.
- Peko, on 07/17/2008, -1/+1Totally agree!
Watch out for this other site "theonion.com" which first has nothing to do with onions and second the articles seem to have poor editorial fact checking and points of view which I think are foolish or uninformed. Some articles I just don't get.
- MindStalker, on 07/17/2008, -2/+15WTF, this is the worst article I've ever read.
Title: Budgeting for Lazy People
Content: Complicated budget down to the penny.
FAIL! - christhechris, on 07/17/2008, -3/+2meh...
- RudeTurnip, on 07/17/2008, -1/+41. Ramen noodles - flavor packet + hot sauce + olive oil + greens + tuna
2. Profit
3. Jeff Goldblum maniacally laughs about the lack of a third step. - ninjadeathcult, on 07/17/2008, -1/+4here is my tip for saving , buy a foreign currency (a stable one) I buy aud's from the post office and keep them cos it takes effort to change back the currency to your own , whenever I have pounds saved in cash I allways spend with aud's i dont
- zacharytelschow, on 07/17/2008, -0/+1"here is my tip for saving , buy a foreign currency..."
That isn't saving, that's investing in currencies.- ninjadeathcult, on 07/30/2008, -0/+1yawn...
- zacharytelschow, on 07/17/2008, -0/+1"here is my tip for saving , buy a foreign currency..."
- protodon, on 07/17/2008, -1/+3Seriously if I don't immediately see numbers or bullet points I don't even look at it.
- mahdaeng, on 07/17/2008, -0/+11. You truly are lazy.
2. See number 1.
- mahdaeng, on 07/17/2008, -0/+11. You truly are lazy.
- forceeffect, on 07/17/2008, -2/+6If you're really serious about helping your own financial situation, here are some tips I practice and recommend.
This is, of course, assuming none of us have much self control.
1) I've cut up all my cards. If you're not constantly adding more debt, that's one sure-fire way to get them paid off. I will never use a credit card ever again, because (a) I can't and (b) even if I open a new one up, I understand credit cards are crashing our economy and ultimately all of our dreams, so I'll try to only use it for emergencies. Credit cards are the devil (literally that Faust deal). Stay away from them and pretty soon, you'll find yourself rich on your current salary.
2) Without credit cards, just save up the money before you buy something, like we all used to do when we were kids. Duh. It took me six years and a lot of debt to figure that out.
3) I also recommend the separate account to hide your money from yourself.
4) Pick up Budget for your iPhone/iPod.
5) Get an actual calendar and mark on every day you have to fork over your cash. This allows you to see when you're not going to have as much money as you stupidly thought.
6) If you think you need to buy something online, just wait at least a day (I recommend a full pay period) to see if you still want it then. The Internet is too enabling for impulse buys on a global scale. Whatever you wanted, it will still be there.
7) Lastly, if you are relying on your online register exclusively, don't. Not all of your transactions happen instantaneously, so your balance is not always as current as you thought. Use that regular pen and paper checkbook register to always know for sure how much green you really have.- mahdaeng, on 07/17/2008, -0/+1Dugg.
Very good points. I would only say that #4 is unnecessary if you realize that gadgets are unnecessary. Also, #6 can be applied to any purchases whether or not they're online. It's always best to give yourself some time to get over the initial excitement about a product before you decide to buy it. If you find that you've forgotten about it after a week or two, then you probably shouldn't buy it anyway. - Peko, on 07/17/2008, -0/+2"4) Pick up Budget for your iPhone/iPod...."
If you have budgetary problems, owning an iPhone might be your problem right there. But I live in Canada =p.
- mahdaeng, on 07/17/2008, -0/+1Dugg.
- elamr, on 07/17/2008, -0/+1rejoice later.
- tinkafoo, on 07/17/2008, -0/+9Here, this is better:
DON'T SPEND MORE THAN WHAT YOU HAVE.
Shorter, and gets the same point across. - tasine, on 07/17/2008, -2/+3Not all people have equal problems or solutions. Some (I have been there) didn't have enough money left over to even eat out on after all bills were paid - nothing frivilous was bought. We finally dug ourselves out of debt and both of us got a raise at work, then we were able to begin saving and making different decisions. At present and at no time have I ever been even close to financially wealthy, but in my later years I am comfortable, and I attribute that to my lifestyle. Would I love to live in a beautiful home? Sure. Can I afford it? Nope. Would I love to have all new furniture? Yep. Could I afford all new furniture? Yep. Will I get it? Nope. My kids want nice homes, swimming pools, new furniture, nice cars, the biggest and best. Can they afford it? Nope. Do they get it? Yep. Are they hollering about the high cost of things? Yep. Am I hollering about the high cost of things? Nope, except in certain areas. Me? I'm happier living worry free than having all I want and worrying about how I can pay for it - or worse yet, how I can get somebody else to pay for it. Read that "bankruptcy" or "welfare". It does take a certain amount of maturity to see the truly valuable things in life - and they are not things you can buy with money. One can be enormously happy without an abundance of "things", but not if they envy those who have those things. Forgive me for acting like a preacher or teacher - I am neither, but I'm what is called a senior citizen, almost 70 years old, and I am so distressed when I see how so many people throw money around like drunken sailors than can't pay their bills, or complain about the cost of something while handing money over to buy that very thing. That is lunacy. Grow up. Don't spend more than you have. Save some money from each source of income. Even if that is a tiny amount it will help you get in the groove of saving regularly. Hugs to all. :)
- mahdaeng, on 07/17/2008, -0/+1Thank you for your wisdom, sir.
[[One can be enormously happy without an abundance of "things"]]
I would just add to that by saying that one is generally even happier without an abundance of things. - Peko, on 07/17/2008, -0/+3I see you have failed to budget for paragraphs.
- mahdaeng, on 07/17/2008, -0/+1Thank you for your wisdom, sir.
- maxengage, on 07/17/2008, -1/+2Spend less money than you make. Wise words indeed but who does, I knew if i had my chance i would live in far off land, where money is of no concern & listen to rhythm & blues.
The only people who are happy in this current economy are the debt collectors. - charm803, on 07/17/2008, -0/+7Unfortunately, the people that should be reading this won't.
They will look for the easy way out, just like they did when getting a loan they weren't entitled to in the first place.
And guess who pays for it? Guess! - forceeffect, on 07/17/2008, -0/+4Oh yeah, I'm switching apartments in my complex, downgrading. I don't need to, as I can afford my current place, but I realized if I'm willing to sacrifice some space, I can give myself a virtual raise in my income! Cutting expenses wherever you can is definitely smart, and rent is probably our highest expense. If you bought a house, at least you're building equity.
- minorthreat, on 07/17/2008, -1/+5I have a very simple and effective way of budgeting. I have two bank accounts.
1. The majority of my paycheck is deposited into... It is used for bills and I allow a little cushioning for this account. A little more is than what is needed for bills are put into this account, so that I save up some.....
2. This is my spending account. I figure how much money I can waste on food, beer and gas and this much is deposited into this account... If I run out of money in this account before I get paid again.. Oh well, I'm *****.. No matter if I have 2 grand in my bill account, I do not touch it!
No debt should be accrued every month.. If you have cc debt, live dirt poor and pay as much as possible every month. There's nothing like being free man.. I can just pack up my ***** and leave, I don't have an obligation to anyone. - locthebloke, on 07/17/2008, -2/+1I bought a 50 inch plasma screen on my third credit card yesterday, but I'm too "lazy" to return it.
- hellsing47, on 07/17/2008, -0/+1Have a good time getting those things paid off.
- locthebloke, on 07/17/2008, -0/+0It was a joke.
- mman426, on 07/17/2008, -1/+0How am I supposed to learn from this? I am too lazy to read it all, and I am already surfing the web when I am supposed to be working.
- Wujian01, on 07/17/2008, -1/+2Don't spend too much!
Try to educate your self to be a simple person.....
Just be your self.... - shoediva, on 07/17/2008, -1/+1Just don't overextend yourself, it takes much longer to earn it that to spend it. This is perfect
timing for an article like this. - Zman0101, on 07/17/2008, -0/+0"Pay yourself first" is a good lesson my financial advisor had taught me
Deposit a certain percentage of your paycheck (15 percent or so) into an account you never look at, that earns a good interest rate. Don't look at it, or you will be tempted to use it. This is your emergency fund / large purchase fund. Take advantage of 401k allocations and make sure you save for retirement, the government isn't going to do it for you.
Your lifestyle will always always expand to the size of your paycheck, so if you save first then use the remainder towards living you can never feel bad about not putting money away that month.
Few other thoughts..
Each purchase you make, ask yourself the questions "Do I really need this?" "How often, if I buy this, will I use it?" ..avoid spending money on items that are spurr of the moment, because chances are you'll use that item for a month or so and then lose interest. But, don't forget to treat yourself, just do it wisely.
Also, don't be afraid of debt, but learn to manage it well. A good loan with a low interest rate is just as good as a savings account with a high interest rate. Take your time paying off student loans, these are probably the lowest interest rate loans you will ever have.
Just a few tips I live by to keep balance in my finances. - b5c9, on 07/17/2008, -0/+1I think I budgeted for one more beer tonight after work! WooHoo!
- deight, on 07/17/2008, -0/+1Just limit yourself to the places you can be:
1. Work
2. Grocery store
3. Home at digg.com or in bed.
Bonus: Take the bus to the grocery store. This makes sure you won't come back with 5 12-packs.- Peko, on 07/17/2008, -0/+1Better bonus: Ride your bike or walk. Save the $5 it takes for the round trip.
- rebelcapitalist, on 07/17/2008, -0/+2Good advice. But, is there a way to budget for lazy people?
- jus10k, on 07/17/2008, -0/+1I make peanuts at my full-time job but I also live a very minimalist lifestyle so it doesnt affect me too much. For the first time in 3 years I have ZERO credit card debit and that feels great. Now about these stupid student loans...
- channelx, on 07/17/2008, -0/+2I'm too lazy to even finish this comme............ *sleep*
- moncsco, on 07/17/2008, -1/+1Im too lazy to follow this.
- Gazzali, on 07/17/2008, -0/+0The title is a good attraction..
- aldrichnichol, on 07/17/2008, -0/+0 JP Morgan Chase reported earnings of $2 billion, or $0.54 per share, down from $4.23 billion or $1.20 last year. It also announced a mark down of $1.1 billion and increased reserves to $13.9 billiion. Expecations were for earnings of $0.44 per share.Get more market moving news at http://www.smallcappulse.com/index.php/commentary/ ... .
- rybiideeg, on 07/18/2008, -0/+0budgeting is made easy with tools and funds that is available
for instance -- back in 1889 -- they did not have wal mart or a nice sony calculator
or lcd battery
and also they did not have a chuck roast to serve two to four that will only cost a household cook in less than $12.00 bucks
and that includes the rice
so i guess our forefathers -- who are smart -- who foresaw the need to think to separate themselves from a tyranny of a king
so that their children would have a free enterprise and liberty and a chance to forsee happiness
perhaps wal mart exist then too huh?
but not sony i think
so anyway
if dollar for dollar -- and dollar always had 100 pennies
and who ever invented 100 % is good inventor
so what i am trying to say -- is that
a good foundation -- such as some soda cost $0.45 per can --
and some costs $1.00 per can
in the twenty-first century
and some 2 litter soda -- can costs $0.69
while some costs $1.99 per 2 litter soda
such as life
who ever invented spreadsheets
and itt
so anyway
you budget what you have --
and plan for the future with what you have
recycle -- or circle of life
it is the same thing - zeeshansyed, on 08/02/2008, -0/+1There are MANY things that we do not take care of, things that could save us hundreds of dollars each month. I just search here on digg for some money saving tips and found a bunch of articles. For example check out this article. It's short, sweet and makes you think how simple it is to save money each month without making any effort - - http://www.creditandmortgageindex.com/money-saving ...
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