Dolla Bill Disaster

manndrake · November 2012

So my boyfriend and I have been trying our hardest to save up for our future (Me, the wedding and him, the ring) but we cannot seem to get ahead of our bills and budget well. We always end up spending too much on frivilous things like dining out or shopping etc.

Anyone have any suggestions or helpful tips on staying motivated to save up for our ultimate goals? Getting engaged is something we wish we could do.. tomorrow!! I sometimes wish he would just propose without a ring, but he is so adamant on making sure he gets me the perfect ring (once he can actually afford it).

bethsmiles · November 2012

I would write out a budget and stop using credit or debit cards. Layout how much needs to go to bills, rent, groceries, and any other necessities. After that look at what you have left. You want to get engaged faster you save more.

When I was first figuring out budgeting it really helped me to not use my credit card for anything but gas and groceries. I figured out each month how much I could spend on whatever and I took it out in cash. When the cash was gone so was the fun. It really helped me learn to prioritize.

Vintagelove4 · November 2012

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_dolla-bill-disaster?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:136Discussion:b239ed9d-736c-4d28-a3b5-f39b19cfc1eaPost:8eb740be-d530-49fd-bea0-1bf1da64bd01">Re: Dolla Bill Disaster</a>:
[QUOTE]I would write out a budget and stop using credit or debit cards. Layout how much needs to go to bills, rent, groceries, and any other necessities. After that look at what you have left. You want to get engaged faster you save more. When I was first figuring out budgeting it really helped me to not use my credit card for anything but gas and groceries. I figured out each month how much I could spend on whatever and I took it out in cash. When the cash was gone so was the fun. It really helped me learn to prioritize.
Posted by bethsmiles[/QUOTE]

Beth that's exactly what I do!

Me and my bf also share a google spread sheet where we do our budgets side by side and keep eachother accountable. Also leaving the credit card at home when you go out helps tremendously! Then if your out of cash you can't buy things.

peekaboo2011 · November 2012

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_dolla-bill-disaster?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:136Discussion:b239ed9d-736c-4d28-a3b5-f39b19cfc1eaPost:3b7b4431-8a2c-460b-be60-d559b6503e92">Dolla Bill Disaster</a>:
[QUOTE]So my boyfriend and I have been trying our hardest to save up for our future (Me, the wedding and him, the ring) but we cannot seem to get ahead of our bills and budget well. We always end up spending too much on frivilous things like dining out or shopping etc. Anyone have any suggestions or helpful tips on staying motivated to save up for our ultimate goals? Getting engaged is something we wish we could do.. tomorrow!! I sometimes wish he would just propose without a ring, but he is so adamant on making sure he gets me the perfect ring (once he can actually afford it).
Posted by manndrake[/QUOTE]

<div>I think it's a good thing you guys are figuring this out before you move forward.</div><div>
</div><div>I tend to stick to my debit card, and what works best for me is I underestimate the amount actually in my account, and overestimate what I've spent. $75 = $80 spent. $450 in my account = $400. This way, by the time I'm worrying about how much is in my account, and therefore depositing more money, I'm pleasantly surprised to usually find at least a $200-$300 cushion. This doesn't work for everyone, and I will admit that I tend to obsess over buying something - I'm usually not an impulse buyer. </div>

Peaseblossom55 · November 2012

To help start saving and start spending I would set up a high yield savings account and at the start of each month automatically transfer a certain amount of cash over to this account. The account should be designated for emergencies only and for the future. It's best to have the transfer set up automatically to, so
1. you don't have to remember to transfer the cash
2. it doesn't accidently get spent on something else

I do this now and it's been helpful for me. Anything that is leftover in my checking account I know I can spend on whatever I want without guilt because I know I've been saving every month.

lovelyheather · November 2012

I use a system similar to danser. I know about how much of each paycheck will need to go to bills, groceries and gas. So I have it set up that the rest gets automatically deposited into my saving account. So if it isn't in my checking account, I can not spend it. This works really well for me, since I never see the money, I don't feel like I am missing it.

thejucheidea · November 2012

I just take a set amount from every paycheck to place in savings and only use my credit card for gas and groceries. Any monetary gifts also go into savings.

steign · November 2012

I do the same thing as Peek does. I always round up, or tell myself I only have a certain amount to spend i.e. $100 even though there's actually $150 in my bank account. I tend to use my debit card more than cash because I may be the opposite of most people but, when I have cash I spend it. I also tore up 1 of my credit cards, and keep the other one at home in case of an emergency so I only use it if I really need it.

Something else I do and I'm not sure if your work allows this is I put $50 from each of my pay checks into a savings account I have that's separate from my normal bank. So, if I need the money the only way I can possibly get it is if I drive to the bank. So if I want to impusively spend money I know I have to get in my car, drive to the bank and withdrawal it. I find that this makes me concious not to buy stuff I know I do not really need.

Hummingbird125 · November 2012

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_dolla-bill-disaster?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:136Discussion:b239ed9d-736c-4d28-a3b5-f39b19cfc1eaPost:c8338649-de41-41e8-b3c3-51cf2fc4f657">Re: Dolla Bill Disaster</a>:
[QUOTE]To help start saving and start spending I would set up a high yield savings account and at the start of each month automatically transfer a certain amount of cash over to this account. The account should be designated for emergencies only and for the future. It's best to have the transfer set up automatically to, so 1. you don't have to remember to transfer the cash 2. it doesn't accidently get spent on something else I do this now and it's been helpful for me. Anything that is leftover in my checking account I know I can spend on whatever I want without guilt because I know I've been saving every month.
Posted by danser55[/QUOTE]

<div>Totally agree with Danser's suggestion. I am a frivolous spender as well, but I automatically have $200 transfered into my savings account with every paycheck. Occasionally, I do need to move some money from my savings acct. to my checking acct., if I am really short on $ and need it for something, but I never have to do that with the full $200, so I always end up saving something. Also, if I'm a few days before getting a paycheck and I still have extra money left over that I know I won't need to spend, I'll transfer that into my savings account as well. This helps make up for the times I need to "borrow" from that account. </div><div>
</div><div>I definitely don't save as much as I could, but at least it's something.</div><div>
</div><div>EDITED: for spelling!</div>

tuarceatha · November 2012

Look at all of you and your smart moneying! I'm so impressed with my fellow NEYers! (Am I no longer an NEYer? If so, you know what I mean.)

I think any of these methods could work for you and/or your BF, OP.

I have a high yield savings account that I have an auto deposit each week. I also over estimate the cost of things, and underestimate what I have in the bank. I've even put a note on my steering wheel that just said "DON'T." That reminded me not to rationalize a cup of coffee from Starbucks or lunch out or anything that wasn't a bill, gas or groceries.

You can do it!

buddysmom80 · November 2012

I was in a bit of a money/credit card jam. What I did is I wrote down EVERYTHING I bought so that I could put it into perspective (ie: $20 on groceries vs $500 on shoes um, priorities???). My two credit cards are at home. The last time I used one of them was when we went to Mexico in case it got stolen I wouldn't have to worry about not getting my money back vs. using my debit card down there. Also during that time, I was in the process of getting a mortgage and was so paranoid that they were looking into my credit card statements in so much detail that I would get a phone call "you spent HOW MUCH at Victoria's Secret???" Fortunately that never happened, but having someone go into your whole life for a large loan kind of knocks you into really thinking about how to spend your money.

I have a savings account that's over $2000 linked to my debit card so if I have an emergency and I don't have a credit card with me I can transfer the funds. I also have the mentality of once the money's gone, it's gone until the next pay day.

I have a friend who is 25 and is about $20,000 in credit card debt. How she got there? Say her paycheck was $1500 she would put all $1500 towards her credit card bills leaving no money to spend for two weeks, so she would use her credit cards so she basically is paying interest on money she had in hand. So pay as much as you can on your credit cards but also have enough money left over so you're not using your credit cards.

Also consider investing in an IRA or a 401k at your work. It's never too early to think about retirement and if your job has a 401k they take the money out of your paycheck and you never see it. An IRA you have to move the funds yourself (I think....). The general advice is put your percentage into an 401k for how many years you have been at your current employer and also when you get a raise. Right now I have 5% in. Later on today I'll up it to 6% since I have my review later (finally!).

It's good you're thinking about this before getting engaged so yay for you!

motoLyn · November 2012

I agree that mint and other sites like that can help you stay on track. They have budget apps for smartphones as well. Where you set up savings goals and it tells you how much you need to put away each month to met your future goal and you can put limits on your spending so fir example I only allow my self $20 in coffee shops and if I reach that limit of come close the program will email me and warn me. Also you're going to have to make life style changes. No more eating out often or buying things that you don't absolutely need. Good luck.

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