making money, Saving money, and Budgeting?
 

How are you at those things?

I do not make much money but I have learned to budget and save so a little can go a long way. I fall off the wagon sometimes with my budget. Usually my garden busts the budget in the spring but I am learning to manage that Spring excitement a little better each year. I take christmas into the budget and set a limit on how much I will spend on gifts for the lot of people on my list. I also budget one vacation into my budget each year. It is still tempting to spend to feel good.....but spending never leads to inner peace.

Why is this important? Well, it is impossible to have a homestead without bringing in some dough, managing expenses, and saving some dough for rainy days and emergencies.

yep..if land and a homestead are your goals you need to have all these things you talk about.

for me...i decided i was going to buy land and get a nice down payment.back in 96 i lived in the work bunkhouse and put a limit each week on spending the rest of funds got saved.

i had my checks direct deposited in my bank back east and i budgeted $20 for food and $20 for blowing on anything i wanted.at the end of a 6 month work cycle i had $10,000.sometimes i didnt even spend the money each week so i saved it and would do something bigger.

you gotta want it more than anything to save.i then paid it off in less than 10 years and put a new small mobilehome on it and added a 2004 tractor and other equipment and tools and such.it was very hard...seeing co workers drive new trucks and other fancy things..but i kept my nose to the grindstone and it has paid off in so many ways.we all lost the high paying jobs and now i can live like a king on minum wage because i am debt free.

one thing i do wish is that i had had time and funds for a nice solar array as power here has gone up about 9 times in less than 3 years.

p.s.you can do it CB

James and a few other dudes on Ht turned me onto living on a 12 volt dc system. The system uses so much less energy and can be run with less solar panels. Maybe you can look into that elk.

It is hard to forsake being fancy and impressing people while saving dough, but you know the hardship is revealing to me my vanity and my false pride and vanity and false pride are the true enemy to living an economical and balanced life.

You did good elk.

I am on the same page. I am trying to create minimum wage safety net so that no matter what I can always get by. I would love to have the land be my safety net but I do not have that knowledge and skill yet.

It's not hard to foresake being fancy and impressing people. You just need to do things the way you want and that'll weed out the superficial friends lol.

making money...right now i am working on that part of my big dream of my homestead.it may or may not happen but i know i have to try or i will hate myself.money is tight but i am going forward with everything.first goal is to stay out of longterm savings.second do everything i can on a tight budget and i have good scrounger skills too and barter skills.

my goal is a permaculture type woods based buisness...i dont want to cut my trees for one slug of money.i want it to produce income yearly forest products.

products i am working towards..shiitake,chicken of the woods,lions mane and oysters mushrooms.syrup both maple and molasses.firewood,specialized smoker woods for city folks who dont have access to them.garden produce at times.also adding value to my own lumber by milling and selling it cut or making products from it.i know these are huge goals but i got to try.any many other special forest products i am looking into.i am looking at Ben Law in the U.K. for inspiration too.

You rock, Elk! I am horrible at saving money...part of it is that I spend so much fixing, building, and purchasing things needed to get my little homestead where I want it to be.
I also admit to spending too much on preps, but I figure now is the time since now is when I have the money to do it.

Not knocking your homestead because I have never seen pictures of it but I don't know why you don't retire to your cabin. That place is amazing!

That's not spending Shan..That's smart investing...Spending is eating out and buying useless things that you never use and eventually toss.

dont get me wrong i have spent tons on toys and gas and out of state hunting license when i was young.i was out having fun...but when i decided on land that was it.game on.learning how to do things has saved me tons too.i been getting a lot of practice at being a mechanic this year....lol..i hate it...lol

shan i bought and bought while working because i knew those long hours would not last nor the money.i find things packed away daily now...lol.

amen sister

The cabin is heaven for sure, but unfortunately there is no employment in the area. There is only 1 elementary school for miles and teaching positions never come available (and when they do, they go to locals!).

one goal of mine about the mushrooms is i gotta decide soon on how much spore to pre order before fall time.when leaves start falling off i will be cutting trees and making poles and trying to fill freezer while i work too...lol...i am pretty sure i will be doing 1000's of spore plugs.

I try to keep budgeting simple, saving each month for annual expenses like propane tank fill, property taxes, property insurance, life insurance, and auto insurance (insurance poor for sure). If I'm frugal with other costs, like electricity (turn the lights off and use the wood stove!!!), home maintenance (the more you do yourself the more you save), and groceries (buy in bulk and when on sale plus eat simply), it provides more flexibility for things like travel and farm equipment/tools. If I have a bad month budget wise, the easiest/simplest way for me to recover is to just stay home the next month. It's amazing how much money you don't spend by just hanging out at home or on the farm...and there is always plenty to do there.

Getting the leach off my back plus finding a place to life for free in exchange for housekeeping put me back on track. I don't earn much either--I cannot find a job in my profession in this moronic state. Ohio should be blasted off the face of the earth--seriously. (Yes, I can say that--I was born here but my parents, smart people, bootscooted out when I was 2 and never looked back. My obit will say I was hatched rather than admit I was ever in this miserable pukey place.)

I'm slowly rebuilding my savings but food (not even decent food/produce) is more expensive here than in the DC area; truckers HATE coming here because of the tolls and speed limits. Gas prices are also sky high and it's dirty gas. Ohioans don't seem to have a clue what's normal or they'd also leave.

No budget here, had one once upon a time, but living life changed it immensely. Divorce and theft. I try to keep my expenses as low as possible, plan my day so I can get as much done as possible, help my kids if needed (but that is almost a past tense), enjoy a beer in the evening, and keep the wolves away from the door.

I've succeeded thus far. It's taken hard work, and the small amount of thought my gourd can handle. This drought could be a disaster, but I'm working on a back up plan and things are lookin' favorable. I don't want to just survive, I want to keep moving forward.

Might add... this is great hearing what others are doing!

Born, raised, and still stuck in ohio here. I hate this state too. It seems like the real estate market here is inverted. The further from the cities and from jobs the more they want for property.

I don't really plan a budget. My plan is mostly just don't spend on anything I don't need. And if I'm spending on a want I have to be extra positive that I will enjoy it or I won't buy it. It makes my friend mad that I have money in the bank and I won't spend it on fun things. He is the type that stays in perpetual debt because he always has to get more stuff.

My dad always told me to always pay cash. If I can't afford to pay cash then it isn't wise to buy. The only exception to that rule is land. It isn't always available long enough to build up cash, so get a loan and pay it off as soon as possible. I did break the rule and got loans for my car, and then my truck. But they were great deals, and I used the loans to build my credit rating.

I stick all my money in a drawer. About once a month, I go to the bank and deposit it -- usually when it's time to pay off the credit card. (I charge everything to the card. Cashback Rewards, ya know!) Then I pay all the other bills, too.

Somehow, what I've made and what I've spent usually are within $50 of each other.

The money I'm getting for my house goes into a separate account, and I save that. From time to time, I'll move it over into my brokerage account and invest it.

It's a little more complicated than that (quarterly tax payments, etc.) but not much.

I pretty much buy whatever I want ... the secret is to not want very much!

well I for one love Ohio..except in the bad winters!:ogre: I never, ever had trouble finding a job. I live more in a resort area with lakes and a ski lodge..farming community, where everyone knows practically everybody..not like a big town..so I love it...Home is sweet!

I don't budget either....I spend as little as I can on the everyday stuff...I have no debt (except for my mortgage)...I hate to shop and you never find me in the mall or walmart...I save all I possible can so that if something big does come up I am able to pay cash...

I budget strenuously, I have to. Don't know if there will ever be a homestead again. Some dreams fall by the wayside and others take their place. The kids come first and their needs not necessarily wants :) My youngest is looking at college in two years so that will be my primary focus. I dress by way of thrift shops and tag sales...as does my youngest son. Food is pretty simple but filling and healthy. No vacations but day trips are on the menu, because morale is important. There is an emergency fund and my car is semi-new (only four years old!) I have spent thousands on upkeep of cars...no more. Don't like the payments but getting to work is primary. We do have cable because if there wasn't football I think my youngest would not make it :) But there are very few extras. I don't miss much of the luxuries but thoroughly enjoy the few we have.

Until my back went out, I could make it.....well.
Save it? Not so much.
Budget? I had to google how to spell it! HA HA


1. You cannot work forever.
2. If you do not budget and save for the future, it is irresponsible.
3. Security. So much stress and strife comes when we are not responsible with money.
4. (For me personally) It all comes from God, belongs to God and supposed to be used for His Glory, not mine.
5. The children are watching. If you handle money poorly, good chance are they will too.
6. The peace (so I hear) that you have when you are responsible with money is unfathomable.

I am doing the Dave Ramsey Financial Peace University right now.....
It has revealed WHY I have been foolish with money.
Unfortunately my mantra has always been "no biggie, I will just pick up a shift or a 2nd job" (I am a server/bartender) and that will cover it.
I have been unable to work for MONTHS because of my jacked up back.
Didn't save a dime for this type of injury.
Kept on spending like I was still working.
There are a lot of psychological and spiritual reasons why we humans spend / save the way we do.
It's good to get to the root, so that we can change that course, and be more responsible.

LZ 5... Didn't want to click 'quote' for your whole post, but... what you said!! I listen to Ramsey on the radio alot. Smart man! My sis & BIL have done FPU also. Advice your Grandma would give and "live like no one else, so you can live like no one else", should be part of every preppers mindset.

PS: Like that signature!

Making money I've very good at. Saving money I'm not an budgeting isn't option. Good thing I got one down

Me too. Seriously, I think people are about as happy as they make up their minds to be...WHEREVER they are!
Honestly, our winter's aren't even that bad. A LOT of states have WAY more snow/ice/cold then we do! When we do have a bad winter, we don't know how to handle it because we're not used to it. And it's rare for us to get up to 100 degrees in the summer. I don't think weatherwise, we're bad at all, rather mild on either end, normaly.
Job wise..well, things are BAD all over. But I've stayed pretty steadily employed through temp agency's for several years now. And I was hired on recently after working for the company for a year. My kids are employed, my friends are employed.
One might have a hard time finding a job in their particular field in ANY state.
As far as gas, we're still under the national average price wise. Housing costs? Ditto. I can find a decent house in a decent area for in the 65K range, but have even seen them in the 50's range. I know 2 different people from Calif that were GIDDY when they moved to Ohio and saw the rent prices and the cost of homes for sale!
We have a long growing season, very reasonable land prices in a lot of areas in the state, not a lot of natural disasters to deal with, and all in all, Ohio is a decent place to live. (not terribly exciting, but decent) The cost of groceries are going up, but isn't that true EVERYWHERE??
It was brought up on another thread about being able to buy certain items in certain quantities for 5.00 at the grocery store. A few folks said that they thought the prices were outdated, and they couldn't do it. I actualy said that it must depend on what area in the country you are, because I thought I could get everything on that list in those quantites but maybe one.
So I would say our food prices aren't that bad either!

laura 5, most couples break up over money. A couple that is good friends with my family just got divorced over money. The husband is in his mid 50's, lost his job, couldn't find decent work in his field, got a little depressed about it, then they rode the unemployment and food stamp train until the wife jumped ship. They both seemed so deeply in love and joyful together, but his wife was a shopper and she chose her true love "spending on junk" over her husband. It was sad to see.

It is sad.
The Love of money is the root of all evil......
They say that of divorces that happen most are over money, most of the rest are adultery.
It's a shame.

Oh I do have almost all my debts to zero

mav that is good. Interests on loans can really snowball over time.

I am still struggling to not judge a book from it's cover. Back when i was a kid credit cards were only for business men and rich people so people were forced to live with what they had because they could not easily borrow. People like my family lived in patched up hand-me-downs, with had second hand stuff, and maybe some new things now and then on holidays and birthdays. So, you could tell who had money and who didn't because there was no credit to buy what you could not afford. Now, I look around and I still have that mentality. I look at all these fancy people and I just assume they have money because they look like they have money. Not true. The could look like they are doing alright but they can be poorer then dirt or even worse but you do not see it because they have are wearing a financial facade.

laura 5, it is sad, but many people love money more then people. I looked up to the couple I mentioned as a good example of a loving couple. They really did get along great and were very close. I was shocked to see that once financial hardships came the wife jumped ship. I guess all there love and warm affection was just a reflection on a very shallow pond. It looked like the real thing but when tested it proved to be false.

My dad went to the bank to get a pre-approval letter when my uncles house was being auctioned. He got approved for pretty much an unlimited amount in less than 10 minutes. The woman remarked that he didn't look like much coming in the door. He had simple clothes, driving an old truck. But he was better set in life than all the people that come in dressed like they're worth a million bucks. She said the people that look rich usually only have a fortune in debt.

CB & lzyB... You see it for what it is! The 'have it now' concept (as we see it now) was being nurtured into maturity when baby boomers were coming into their own. Now it's almost as if it's a hereditary thing; passed down generationally. I'm no expert, but seems to me one of two things can happen. A grass roots movement to teach financial responsibilty or WAHBL. That's my own spin on TSHTF.

I would like to believe that a change of attitude toward spending can happen relatively painlessly, but I lost my rose colored glasses when the 70's ended. Most major changes, thoughout history, that required a paradigm shift of that magnitude never happened without a good deal of pain and suffering.

My grandma, who was a young woman with a family during the depression, always said the trick was to always live BELOW your means so that you had a back up saved in case of an emergency. My grandpa was often sick and in the hospital with surgeries or heart problems. Everyone always THOUGHT we were rich because we always took care of what we had and always had what we NEEDED but we weren't. We got by (my grandma, grandpa, me and my 2 uncles) on my grandma's nurses wages until my uncles were old enough to work and help out. I worked in the fields picking berries, beans and hoeing mint for all of my school clothes expenses from the time I was 10 and then started working "real jobs" when I turned 15 and could get a worker's permit. We spent little and my grandma and I canned all summer long!!! My uncles hunted and my grandpa and I gardened together (he needed quite a bit of help because of his heart but I learned SOOOO much from him!) One uncle was a big fisherman and also brought home lots of mushrooms, bullfrog legs etc. We NEVER went hungry - esp when we had our farm when I was young. We didn't move to town until I was in high school and my grandpa just couldn't keep up the farm anymore. I still live on very little (esp. being single) but my place is paid for and I have no debt. I've had to spend alot on tires, snow tires, brakes, car repair and gas this year so have used up most of my savings this year but keep plugging along. I don't have tv, internet or take the newspaper. I use my computer at work or my son's in the summer if I need one and make use of the library for DVDs. I don't go shopping for entertainment because "if you don't see it - you won't want it" LOL I dress plain and don't have fancy nails or hair. When I see someone all dolled up in the latest fashions, nails, hair and car etc. I always wonder how much they owe on their credit cards!!!! I haven't had one in 5 years and get along just fine. After I divorced (7 years ago) I just decided that if I can't pay cash for it there is also no way that I can pay the credit card bill for it at the end of the month either!!!!!

Billy, I am trying to get it. I still believe in appearances for the most part.

Cos, it was good that your family all came together to pitch in to get by. Some families fall apart when the going gets tough.

Living below your means is a good idea. I would say that trying to live on 50% of your income would be a good goal, and living on 25% would be amazing.

When I first started gardening it felt like the weight of worrying about not being able to afford food eased. I recall walking into the supper market and for the first time not having tension, anxiety, and fear about prices. I did not even need to go over into the product section because I had my own produce.

I have worked in finance all of my life so it should have been easy to manage our personal money. Great theory. If there was a foolish or selfish or negligent thing to do with our money we did it (and had a great time doing it)!. But sooner or later everyone has a shtf moment followed by (hopefully) an Ah Ha! moment. Personal finances (your money) is not brain surgery, it is discipline. We smartened up before it was too late - paid off our debts, created savings for emergencies and the future and started living on cash and below our means. This took years and it was a struggle but I would never go back.

The most important thing is to create a budget that actually does include some funds for everything. We followed the Gail VazOxlade plan. Percentages of your net income are recommended and if you stay at them or below you barely have to think and you never get in over your head. 35% for housing, 15% for transportation, 15% for debt, 10% for savings and 25% for life (everything else). Of course if you have no debt then that gives you an extra 15% to use for savings and/or life.

I am retired now but I do volunteer work helping people get out of debt and set up family budgets. The hardest thing is to get people to give up the instant gratification and the desire to keep ahead of the Jonses. I have one couple who are $98,000 in debt yet refuse to take a bagged lunch to work. Considering that they are spending $2000 more than they make each month (each spends $400 on eating out) you would think that taking a bagged lunch would not be so horrible if it meant you got to keep your house. They are more embarrassed about bagging their lunch and snacks than foreclosure?

With the way things are going and will continue to go everyone needs to face the reality that the spending lifestyle is over, no one can risk debt and we all need to save, save, save. We will all have to be dependent on our own resources for everyday life and for unemployment, disability, medical and retirement. Since we paid off our debt we have been saving 25% of our net income. In 9 years we have saved enough in emergency to fund ourselves for 2 years and enough in retirement to fund ourselves for 5 years but this means living a completely frugal life. I sure wish we had started earlier. And that is what I suggest - start early and live 75% of your life but also save as if the manure as already hit the fan.

Buying store bought coffee is an expensive habit. Going to starbucks five days a week, two times a day, for a year can cost up to $2,500 a year and much more then that if you buy a cake or snack there.

A dual income family of two that eats out for lunch each work day spends close to $5,000 a year on those lunches.

So, if a husband and wife are both working, taking starbucks twice a day and eating out for lunch, it cost the family around $10,000 a year.

Every decade that family spends $100,000 on Starbucks and store bought lunch.

The average modest working two person family goes out to eat for dinner at least once a week (at least that is what I think, because people like to kick off their shoes and relax on the weekend and at the very least a modest couple is going to go to dinner, or a movie, or bowling). I would say that the annual average that that couple pays to go out for a meal each weekend is $40. With gas that roughly rounds up to 5 grand a year.

So, an average couple going to starbucks twice a day, eating out for lunch each day, and going out for dinner once a week spends $15,000 a year. $150,000 in a decade.

I keep pretty close records of how much I spend, and on what, then project that a year in advance. Regardless of how much or how little I have in savings, I make sure to keep a couple years worth of living expenses in advance. That way I constantly replace anything I spend from my savings. If I were to ever get below a couple years of living expenses, plus enough for any foreseeable emergency I'm sure I would panic though.

People that go to starbucks to get coffee aren't motivated to save anything. I buy coffee in a can when it's on sale. Last coffee I bought was $4.75 for a 33 ounce can and the store had a flyer with a 25% off coupon. So, I picked up a handful of flyers, and bought all the coffee they had. worked out to $3.56 a can, plus tax. maybe 1 1/3 cent per cup. And I've got over a years worth of coffee now. To me, "eating out" means standing under a fruit tree and eating fresh fruit. Or else sitting on the porch eating. I buy canning flats the same way, all they have whenever theres a store coupon. So, the ones I bought a few weeks ago were $1.25 a dozen, less the discount. I got 50 dozen, which is 600 flats, which will last me all of this year, and some of next year. I caught sugar on a great sale and really loaded up. I have maybe 200 pounds now. my average price was $1.50 per 4 pounds. It's not really hard to save a lot if you buy on sales. And although people seem to think that making bread, canning, and stuff like that cost more than store bought, it doesn't. All in all, I think once you have your home paid for, and produce your own food, you're just about as close to living off the land as you'll ever get. my average utility bill for the past 12 months stands at $58.58, including tax. AC, Heat, everything. I built the house new from the foundation up in 2005, its quite well insulated.

My mother and father taught me to budget on a ledger to the penny.

Every month I list my income and 14 recurring expenses (utilities, food and fuel in places 1, 2 and 3 and "pocket money" in place 14).

At the end of the month any budgeted overages go into my cash reserve to be held in case I require a infusion into my budget in months ahead in case one of my 14 ledger items exceed the normal budgeted amount.

If my cash reserve doesn't need to be tapped to keep my budget balanced at the end of two quarters, I put half of it into my savings.

If I make a little extra money I generally split it 3 ways between my pocket money, cash reserve and savings.

Living on a budget is easy. You simply have to prioritize , keep pocket money, cash reserve and interest bearing savings separate and cut from the back end if required.