Quote:
Originally Posted by pyroguy
It is a good video to watch, but I would strongly disagree that you don't need to budget. He eludes to not writing checks for bills and then wondering where the money went at the end of the month and that you should not live beyond your means and those two items I agree with. However, if you sit down, put together a live-able budget and assign ever dollar that you will earn that month a name (mortgage/rent, food, utilities, transportation, etc.) you will find that you have some surprises in your spending. My financial adviser says that it takes 90 days to get a budget right, and in my experience he was about right. It took around 90 days to figure out where we were spending and ways that we could make our money work for our live-able situation. Part of the "pay yourself first" is knowing where to put the money so that it makes the best financial sense for you. If you have debt, that should be your #1 priority to eliminate. If you need to save for a large expense coming up (newer car, home repairs, college, etc.) then set aside a sinking fund. A sinking fund is nothing more than a savings account or allocation of money for a larger purchase. Either way, make sure that you're doing what's best long term financial sense. The greatest wealth building tool is your income. Don't let debt and frivolous spending take away your ability to retire wealthy.
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Yeah i hear you i think paying yourself first is key its always worked for me and maybe the key is once you pay yourself first then you could figure out what to do by writing out your expenses you know. And yeah the sinking fund is equivalent to the “ emergency fund “ in the latest video where its an amount used for large expenses that are unplanned. Like he said in the other video everyone financial situations are different whether your single, married, have kids, work full time, part time, live at home, own a house, rent. The videos are generalizations for the basic information you know. The key is to do what works best for you and your situation, this channel is just about giving people some information and tips they they might know of or another method to try. If you have a financial planner already he knows your situation the best so he knows whats best for you. I appreciate the dialogue on this already great to hear different point of views! Great conversation!