STYLETHREAD -- LET'S TALK SHOP!

greendiamond · Marc Jacobs

creating a new budget, have questions.

erin · Chanel

1. yes. my work does not offer 401k, but my husband's does. he saves 3% of his income for that. we have not started other retirement plans yet, but he also has a pension.

2. i wish i knew! some months more than others! i would say right now, 200$ per month on food, mostly because my husband eats lunch out a lot (and sometimes dinner when i work late) this seems like a lot for two people, i think.

3. we have about 6 months saved, but we are getting new windows soon so that will dwindle a lot!

4. no, any tips?! we are trying to work on a new budget so i can be a SAHM when we have kids. mostly we are just looking at necessary/unecessary bills. like having two cells phones, and a land line. right now, we have dial-up, but it wouldnt be much more expensive to have cable modem + cable and cut out our land line. (which we currently only use for internet) i know i can definitely save more money by cooking more, cutting out my gym membership, etc.

kenzie · Chanel

1. Are you saving for retirement, and if som did you pick a % of your income or a specific figure?

Yes. I put $$ into my company's 401K, I also have a separate Roth IRA and a Money Market account (my bf set these up for me with his bank). As far as my 401K goes, I contribute the maximum amount that my company will match (up to 6%). If you don't contribute the maximum amount, then you are basically turning away free money for your retirement! I know it means less money in my pocket now, but honestly, I would rather be able to have a comfortable retirement than a new pair of shoes!

With my other savings accounts, I simply contribute whenever I get extra money or if I recieve 'found' money (gifts, income tax return, ect).

2. how much do you spend on groceries?

We spend about $150/month on groceries. I don't cut coupons b/c I think that makes me spend more and buy things that I wouldn't normally buy. I do have a savings card at the grocery store and I stock up on meat when they have a sale (for example, they had filets on sale for $8.99/lb, regularly $15/lb, so I bought a bunch and froze them.

My philosophy when it comes to buying groceries is this: It's food! It's how your body sustains itself, so I don't like to scrimp too much.

3. Do any of you have 3 months income saved in the bank?

Unfornately, not anymore. I had about three months saved and then I quit my job and had to use about half of it. So, now I need to build it back up. It is hard to attain and it takes a lot of self-discipline, but it's worth the peace of mind. I knew that I could quit my job and still be okay without another one and, in the end, I think it saved my sanity.

4. Any magic formulas you use?

Hehe...I wish! I don't think that there is a magic formula, other than just really strapping down and making a commitment to yourself that you *will save money.* If anyone has any magic formulas, I'm open to suggestions!!!

As far as saving, I try to save at the very least 10% of my total income in diversified accounts. I guess diversification could be a magic formula. Open several different accounts. If you're into the stock market, invest in several stocks (my bf does this, but I'm still a little intimidated by it). But don't put all of your eggs in one basket, spread them out. Open several savings accounts: retirement, 401K, several ING (for various things), one connected to checking that is readily accessible in an emergency, ect.

Anyway, I hope that helps a little.

mikacat · Coach

greendiamond wrote:

So, my husband and I are trying to agree on what we should spend our "left over" money on, and I have a few questions... 1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure? 2. how much do you spend on groceries? I feel like we spend way too much. 3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain. 4. Any magic formulas you use? Thanks for any input. I'm trying several different things. I don't want a hard and fast budget, but I do want to have a general understanding on how we divvy up our excess. TIA-gd-- Edited by greendiamond at 21:41, 2005-06-28

1-yes (we do 11% in a 401K)

2-about $300/month on groceries but we eat pretty well and eat a lot of meals at home and i take food to work.

3-i have about $5000 saved in the bank so not anywhere close to three months

4-no magic --wish there was.

JMR · Dooney & Bourke

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

We both have pensions plans that we cannot contribute to - we have mutual funds that we try to add to monthly and some stocks that are terrible - we have invested most of our money in real estate - we find that it is income generating now (which helps us pay for our own home) and since we want to hold them for the long term - down the line we can use the equity as retirement money.

2. how much do you spend on groceries? I feel like we spend way too much.

We spend a lot on food - about $75 a week and then going on on top of that.

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain. yes...I think this is SO important (and I think it should be closer to 6 months) I know it is hard - but the security is worth it.

4. Any magic formulas you use? PAY YOURSELF FIRST - just like you write out checks to pay bills - pay yourself your "savings" for that month - no matter what - treat it like any other bill.

Elle · Hermes

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

We contribute 3% (what his employer matches) to FHs 403(b) and he also has a pension. We plan to get into real estate in the near future as well.

2. how much do you spend on groceries? I feel like we spend way too much.

We spend $300-$400 a month on food!!! I cook dinner every night and we eat the leftovers for lunch, and we only go out 1 or 2 times per week. Nylabelle how do you only spend $150 a month on groceries - I want your secret!

3. Do any of you have 3 months income saved in the bank?

Hardly! When we lived in Spokane it was a strictly make ends meet situation while FH was in school. Now that he's out and will be making some money for a change, we'll be able to put something in savings (though most of it will be for the wedding).

4. Any magic formulas you use?

PLAN FOR THE FUTURE. I know that sounds terribly generic, but having a plan in place is the best first step even if you can't make much more progress than that right now. Also, tracking extraneous expenses (dinners out, morning coffees, mags, movies, shopping, etc) can help you see how much money you could cut out of your expenses if you had/needed/wanted to.

crystal · Kate Spade

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

yes, i'll be 24 in august (i thought this was an important note that no one else mentioned) and i contribute the 6% max that my company will match. i also contribute $50/month to a mutual fund.

2. how much do you spend on groceries? I feel like we spend way too much. 3. Do any of you have

i agree w/ nylabelle about not scrimping here... i spend a little over $100/month & i live alone.

3 months income saved in the bank? This seems like good logic, but hard to attain.

sadly no, i'm desperately trying to pay off debt so i put all my extra cash towards that. i know it's dangerous not having $$ to fall back on, but i'm young, college educated & can get a job pretty much anywhere (even if it's mcdonald's) and even though my family doesn't have much to help me out w/, i know i could move in w/ my mom if things got really bad. right now, it's more important to me to pay off the debt!

4. Any magic formulas you use?

i agree w/ JMR.... pay urself first! on payday i pay all my bills whether they are due yet or not. that way i know exactly how much i can spend til next check. also, i pay twice my car payment & treat it as if the whole thing is due so i never say "oh, maybe i'll use the extra $250 for clothes this time". i also pay a set amount to my higher balance credit card, even though it is more than the minimum. then i divy whatever is left among my lower balance credit card (which i'm trying to get back down to 0, but i have a lot of reimbursable expenses on there) and myself.

member · Hermes

JMR - I really like the idea of "Pay Yourself First" what a great idea. I never thought to think of putting money in my savings account as another bill I have to pay. I am defintely going to start doing this. It's really hard for me to save much at all right now, because I'm trying to pay off credit card debt, but any little bit helps, right?!!

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

Yes, I contribute 4% of every paycheck (what my company matches 100%) to my 401k.

2. how much do you spend on groceries? I feel like we spend way too much

I live w/my boyfriend and we spend about $300 a month, sometimes $250. I agree w/the others about not scrimping on food and eating well.

3. Do any of you have 3 months income saved in the bank?

I used to but it's somewhat dwindled over the past year or so. Like I said, I'm trying to pay off debt so I try to not charge anything else, sometimes I wind up having to fall back on my savings until my next paycheck. I'm defintely going to be more active in saving from each check, even if it's just a little bit.

4. Any magic formulas you use?

Not really. I am like Crystal, where I pay more than the min. balance on all my credit cards and I pay a lot of them even if they aren't due when I have the extra money. The day I get my paycheck, I immediately write down my budget. What bills are due, how much money I have after bills, how much to pay on credit cards, etc. Then if I have extra I figure out how I can treat myself.

I'm glad you posted this GD - what a great way to see how others budget/handle money and get some pointers. This is helpful to me already!

kenzie · Chanel

LMonet wrote:

Nylabelle how do you only spend $150 a month on groceries - I want your secret!

Well, it's not really too fantastic (and kind of embarassing). The bf's parents give us food, too. They buy us cases of water and send over other groceries like cereal, milk, ect. It's kind of obnoxious and it's not something that I've asked for but his mom always sends food to us when he visits his parents.

ETA: To crystal's point, I'm 25 and I'll be 26 in August. And as JMR mentioned, buying properties is also a great investment. We plan to do this eventually (the bf is selling the house we currently live in and in only two years, he may make over $150,000 on it!).

-- Edited by NylaBelle at 13:02, 2005-06-29

bumblebee · Coach

greendiamond wrote:

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

yes, but it's money that i have put in over the years and invested (i have a Roth IRA and some money market and mutual fund accounts). now i just contribute a big chunk once a year, in december (as much as i can without suffering!). my firm doesn't have a 401K (regrettably), but they do have a profit-sharing, so that will become part of my retirement savings also.

2. how much do you spend on groceries? I feel like we spend way too much.

honestly, i have no idea. i'm really bad at keeping track of stuff like this. i do know, that as a single 29-year-old, i spend a significant percentage of my money on restaurant lunches, dinners and drinks. i consider it my entertainment as much as "food" though. i also spend money on stuff at the grocery store, probably averaging about $40/week. i guess that's pretty bad.

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.

yes. actually it's probably more than that, but i am a little preoccupied with the idea of being prepared for an emergency. i have a credit union account that i don't really understand how to access the money, which is great because i am never tempted to take it out. i have an automatic transfer from my paychecks that goes into it every two weeks. this money is also sort of earmarked for a condo downpayment somwehere down the line, so it will get depleted considerably. i actually also just put the transfers on hold for a month or two so that i can pay down my credit cards, then i will start it back up again--i hate that i had to do that.

4. Any magic formulas you use?

my dad is a financial planner, and the one piece of advice he has always given me is the one JMR already posted--"pay yourself first." it's really the best way of disciplining yourself.

bumblebee · Coach

oh, and nylabelle--don't feel bad about the food! my parents feed me and send me home with stuff all the time. it really does make a difference, and you always know they are so happy to do it. it's a win-win situation!

Lilykind · Hermes

I just graduated a month ago and I incurred some credit card debt while I was in college (being a college student with a min wage job in Los Angeles really blows). My budget right now is fully concentrated on paying off said debt. My card is interest free until October and I will have paid off 90% of the debt by the time that is done.

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

See #3...but by my 21st birthday (next June) I plan to start contributing to my work 401k and to start a Roth IRA.

2. how much do you spend on groceries? I feel like we spend way too much.

BF pays for the groceries these days since he makes 5 times what I make. We spend about $300 a month for the two of us. However, a lot of our prices are inflated because we live in the city. We split a Costco membership (you don't have to be married to put two names on the account) and we buy a ton of fruits, vegetables, and staples like water, meat and bread. Trader Joes is where we get stuff that we need in smaller quantities. I buy a week's worth of workday lunches at TJs as opposed to going out. We've been doing this for two years and it's worked really well for us. I find that we generally eat really well and since we're always worried about wasting good fruits and vegetables. Food is not something to skimp on. It's so much easier to function when you feed your body well. We eat out maybe once or twice a week plus special occasions.

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.

Unfortunately I live paycheck to paycheck at this point. This debt bothers me so much that the second I got back to Los Angeles from my New York trip, I resolved to put major brakes on shopping...only replacing things as absolutely neccesary (like when my facial cleanser runs out, I need to get more and I can only get more when I've used every single scrap of facial cleanser in my closet). My eventual goal is to pay off the debt and have four months income saved eventually.

4. Any magic formulas you use?

Haha I wish! All my advice centers around groceries.

-- Edited by Lilykind at 14:17, 2005-06-29

Meow · Coach

greendiamond wrote:

So, my husband and I are trying to agree on what we should spend our "left over" money on, and I have a few questions...

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

We are saving for retirement via our work. I am a teacher and he is a government contract worker.

2. how much do you spend on groceries? I feel like we spend way too much.

Not as much as we used to. We figured out that it is just as cheap for us to go to the deli at our local grocery store for supper (can you tell I am from the south?). We just take our lunch to work and neither one of us eat that much breakfast. However, we probably end up spending about $300 per month on groceries (YIKES!!)

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.

Yes

4. Any magic formulas you use? Thanks for any input. I'm trying several different things.

We use a budgeting procedure developed by Larry Burkett. He was a Christian financial counselor until he passed away several years ago. It is just a budget based on percentages. We have accounts for everything--clothing, food, misc (a hard one to control), gifts, etc..

I don't want a hard and fast budget, but I do want to have a general understanding on how we divvy up our excess. TIA-gd-- Edited by greendiamond at 21:41, 2005-06-28

Sunshinegirl · Kate Spade

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

I have something like a 401K plan with the state university system. I put in a little each month but not enough. My real estate is my retirement plan. I have my home which once we move to my husband's residents, i will rent. Also, i just purchased a condo using the equity from my home. i too rent this.

2. how much do you spend on groceries? I feel like we spend way too much.

Believe it or not about $450 - $500 a month for two people. I love to cook and bake which can be costly but i love foods made from scratch. This also includes our wine budget. I'm 37 dammit, i want good wine from here on in!

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.
No, i have about a months salary.

4. Any magic formulas you use? Thanks for any input. I'm trying several different things.

I do pay myself first. Pay the bills next and then whatevers left is mine. I try to ensure that there is atleast $50 - $100 left in my checking account by the next pay period and then i'll take that money and put it towards my credit card or in my savings account. It's become a game with me.

luckylily · Gucci

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

Yes, my company has a 401(k) and my husbands has a 403(b). I only put 4% in my 401(k) right now. We are trying *really* hard to pay off debt. I'm going to up it to 6% when I get my raise in the fall. For many years, I contributed the maximum, so it is a good chunk of change now. I also have and IRA that my Dad started for me when I was 18.

2. how much do you spend on groceries? I feel like we spend way too much.

Probably $350-$400/month for the two of us. It is a little expensive, but we feel really strongly about buying organic and and free range.

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.

I try to, but often have to dip into it for medical expenses, vet trips, or things like fixing the car. I usually only have about 1 month. Also, paying off debt is more of a priority for me.

4. Any magic formulas you use?

No. I also pay myself first, which is great advise that I've heard time and time again. Unfortunately, I can't afford to pay myself all that much.

halleybird · Hermes

1. My husband's company has a 401k, and he contributes the maximum to it. I am not eligible for a 401k, but I do have a (measly) State Teacher Retirement System that I am required to contribute to. We are planning to open a Roth IRA before the end of the year.

2. I think we spend around $300 a month on groceries, if you include all the non-food items, like cleaning products, kleenex, etc.

3. I think we have pretty much exactly three months saved.

4. No secrets, but I will say that buying a house is the smartest financial decision I ever made, and I did it by myself at 22. It's not as difficult as some might think.

ILoveChoo · Hermes

extra money, what extra money? in all seriosuness though:

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

no. I just turned 22 and really want to start, but I am also hoping to get a new job when I am done with grad school in December (if not sooner). At that time, I will start, and will contribute as much as my employer will match to a plan. If they don't match, I will have to figure out something else.

2. how much do you spend on groceries? I feel like we spend way too much.

Usually around $50/week for the two of us, but we try to keep it closer to $30. FH gets free dinner at work though, so that saves some costs and I don't usually feel like cooking anything too fancy for just myself so I eat cheaply.

3. Do any of you have 3 months income saved in the bank?

sort of. Technically, yes- I have about 8 months income saved. I didn't save it though. It is what is left of my college money that I didn't spend because I went to a school that I had a full scholarship to for undergrad and then got a job with a tuition benefit for grad school. I have a very small loan for one semestre of grad school- probably about a third of my savings. I am hoping to use the money as a down payment on a house or condo though, so since it's earmarked for that I don't really consider it to be "savings." So really, I have no idea how to answer this question.

4. Any magic formulas you use?

bah, I wish! Although we are pretty good at sticking to our budget- after I take out from each paycheck my part of rent. utilities, and groceries I put half of the remainder into savings and the other half is what I have to spend. It's not a lot. I def. spend way to much on rent- especially when you consider that I am hardly ever home- and if I can find somewhere cheap enough to be worth breaking my lease for I might do that.

ETA: OK, I just figured out that 12.5% of my income goes into savings. I def. do not make enough, because I promise you that sometimes I feel this piddl-y little amount is not worth it at all.

-- Edited by ILoveChoo at 16:43, 2005-06-29

dot · Marc Jacobs

1. this is the first time ever my place of employment offer a 401k. i think they match 6%, so i qualify next month and i'm going to save the max. my bf also has a 401k offered with his employer but he hasn't been saving. i also have money market account.

2. i spend on the higher end on groceries but since i moved i rarely go out to eat (twice a month max). i usually bring my lunch or get free lunch at work (for meetings, etc). i never take-out and like to entertain and have people over. i think about $300-350 a month (but that includes lots of other household things).

3. no, i have about 1 month's due to moving :( i am working on it.

4. no, if someone has one please share it. i know that for me i feel like i'm finally starting to understand what my priorities are (meaning that shopping has been taking less of a priority lately). :(

i joined shopping ban.

JMR · Dooney & Bourke

I just wanted to add - with "pay yourself first" - It can really be whatever you can afford....even if it is $50 a month - you would be surprised how quickly it adds up and before no time you will have a nice little savings account.

The money you pay yourself should really be for savings - untouchable (unless you want to investment it) Not money that go towards CC or Debt or shoes, etc... It is the best way to FORCE yourself to save money (especially if you are the type that needs that structure)

I am a fairly structured person - but I found when I paid myself first - It was exciting (for lack of a better term) when I could save more this month than last...some months I was able to save a whole paycheck - yes, my shopping suffered that month - but the reward of seeing my bank account grow was worth the sacrifice.

I am not saying I have tons of money - I am not rich and not even sure I should be giving advice...but it's something I feel strongly about. I worry so much about friends of mine who make GREAT money - and yet don't have a penny saved....it is easier to save money when you are younger, any advisor will tell you that - you have to save WAY more when you are older to make up for what you missed in your 20's.

Anyway - now I am just rambling - sorry - again - not trying to preach - just trying to help.

lynnie · Chanel

1. are you saving for retirement, and if so, did you pick a % of your income, or a specific figure?

Right now I just have a Roth IRA. My dad started it for me when my granddad died , and has, to this point, put in the max (was 3,000 a year, now its 5000 I think?) He will keep putting in for a couple more years, granddad's requests, then I will take over (I'm 21 by the way) If you put in 3000, that is about 250 a month (more because taxes are taken first I think.) Highly recommend putting the max in since you can save soooo much more by starting early. I had some money in individual stocks and lost, and had some in mutual funds and gained, so I think for ease, I'm just going to stick to mutual funds, and pick stocks in my separate account for stocks. My granddad was a stockbroker, so making money by having money is very important to me, and I fully believe in investing somehow, either in stocks or real estate.

2. how much do you spend on groceries? I feel like we spend way too much.

I should pull out an old CC statement for this. I'm sure its RIDICULOUS. Well, by my standards, which means not too bad, but more than I would like to spend. Ok, in December it was $103.26 but I'm sure its usually closer to $150 since I probably went home that month for more meals then usual. I usually charge everything, so I have all these $2 and $3 charges for Wendy's and Subway. I, like Nylabelle, try not to scrimp on food, because, well, its food, but I will debate getting something off of the dollar menu or getting a combo over a few measley dollars. IT ADDS UP. I buy nice things at the grocery store though and from places like Trader Joe's- this is my splurge. I will buy fresh guac, fresh produce, smoked salmon, etc, because its worth it to me.

3. Do any of you have 3 months income saved in the bank? This seems like good logic, but hard to attain.

Haha, I've never had a salaried job, so I don't even know what 3 months of income would be. I have been saving all through college though, due to mistakes I made when I was in hs (I worked a TON but had no savings because I bought so much junk, literally, I would spend all my money on a trip to the mall, and now I'm STILL going through the wreckage and throwing things out). This has made me super anal about spending money, though you might not know from the weird things I buy. But I never go to the mall and just buy lots of little things. I usually spend about $400 a month on clothes (though its only one or two things), which I try to cancel out by selling things I don't wear anymore on eBay. I also buy food and sometimes drinks on occasion. So I'm barely spending any money (my granddad paid for my college, which is at a state uni and not too $$, but very nice of him) and I've had up to three jobs at a time. Though now I'm not doing anything and really don't know if I'll ever get a full-time job I have about $16,000 in a stock account (which I owe my dad $8000 for my last year at school), that my granddad set up for me. I am very lucky to have this, because I can make mistakes without REALLY having to deal with the consequences, though I still would like to turn it into much more money. I also have about $18,000 that I have saved up myself over the past 4 years. Keep in mind that I have virtually no expenses, and I am mainly saving this for the day, hopefully in a couple of years, where i just give up whatever jobs I have and start my own business (either a store or my own fashion line.) I also know that come August, I will be paying for everything myself.

4. Any magic formulas you use?

I am very hard on myself, and would like to be able to live by spending virtually no money. It comes from years of my parents telling me they can't afford to go on vacation, buy a bigger house, etc, and I don't want to be like that. I always was scared my parents were struggling (even though we were middle class living in an affluent area, thats all) so I still have childish fantasies of making a million dollars and buying my parents a new home. I hope I can. So anyways, the annoying phrase, "Don't increase your wants and needs" applies to me. I drive a modest car, I don't go out all the time, I try to eat at the apartment and find cheap fun things to do (going to the park, reading, painting, renting movies) Though it looks like I shop a lot, I also outsave all of my friends and don't buy things I won't wear and don't LOVE. I return things if they don't meet my standard. IT ADDS UP. I try to live knowing that I don't want to be chained down to any job EVER, and be able to quit if I hate a job. I don't want the golden handcuffs to apply to me either- if I make a ton of money at a job that is merely ok, I plan on quitting in a year or two, while saving most of the money I make. If this seems extreme, keep in mind that I am a business major, and this is how I think. I know the corporation has the final laugh, so I would rather not have them make tons of money off of my talents, when I could be making that money myself and using it in responsible ways to support causes I enjoy (buying my parents a nice house, traveling the world, supporting indie and emerging designers, saving the environment and the oceans.) Whew, that was long, hope that helped some!