Quote:
Originally Posted by soundman98
it might be for you two, but it's extremely, horribly difficult for me.. and it was heavily stressed in my high school, as well as by my parents.. that doesn't change the fact that i can't spend 15 minutes going over financial stuff without pulling out my hair..
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What seems to be the problem?
Take a deep breath, put on some chill music (or go to a silent room if you prefer), sit down, and figure out your necessary monthly expenses. Necessities are rent/mortgage payment, repayments of any debt you have (hopefully none), any kind of insurance you have, groceries, phone bill, gas, etc. Budget for these things that would be hard to live without first. If these things cost more money than what you make, then you are living beyond your means and need to cut back somewhere (move to a cheaper apartment, get rid of your data plan, etc; just because you want it doesn't mean you can afford it).
If you have money left over, make sure you are saving money (most experts recommend you have a 6-8 month emergency fund to cover your living expenses (in a liquid account, like savings); once you have that, you can save money for other things like house down payments, car down payments, or contribute to a Roth IRA or whatever kind of low-risk investments you may be interested in). After that, whatever you've got left is spending money. Spending money should probably be separated into a few categories, like restaurants, entertainment, clothes, and misc (everything else). Don't gyp on your saving just because you want to have money to spend, but you should probably at least leave yourself a little something just so you don't go crazy.
A lot of people use Mint.com for this kind of thing, but I recommend the envelope system (keep the money (except for your savings) either in actual envelopes in a safe place, or in a bank account with a spreadsheet detailing exactly what that money is for.
This is the most important part of a budget: once you have spent the money you have set aside for each part of your budget, you CANNOT spend any more. That's it, you're done. Spent all of your spending money but want a new pair of shoes? Too bad, you have to wait. Friends invited you out for dinner but you've already spent your budgeted allowance? You're staying home. And always treat credit cards like a one month loan. Never charge anything you don't have the money to pay for IMMEDIATELY. And if you're smart, you will use credit cards to reap the benefits of cash back rewards, added warranties, and other various consumer protections, AND you'll pay the card off EVERY MONTH, as soon as you get the bill.