A. Over the years, we have found that one of the best ways to stay on budget is to use cash for those categories that are discretionary - or you have the ability to spend whatever you want on. Some of these categories include groceries, dining out, personal allowance, and clothes.
But we often hear in our REALIGN classes that people don't like the idea of carrying around a ton of cash. They either feel like it isn't safe or they are afraid that they will lose it.
A. Managing your money can be really frustrating to do when you are trying to do it with someone else. Some married couples have said that they think the best thing for them is to just have separate checking accounts. So, is it really that bad to have separate checking accounts?
A. When getting out of debt you want to start by putting aside a small baby fund for emergencies of $500 to $1,000.
Then you want to work your budget and continue to save for annual expenses. This way you don't go into debt for emergencies or events that you knew would be coming up.
But then your focus becomes getting out of debt. By paying off debts with interest rates of 5% and higher, you are actually saving hundreds of dollars each year.
Today, people own cars that are worth more than they make each year. That is just ridiculous. Honestly, I'm more of a simple man myself and just like my dad, I just want a car that will get me from point A to point B.
But not everyone is like me. I would say for the majority of people you should never spend more than $10,000 to $15,000 on the purchase of a car. You can buy a fantastic used car in this range and below.
I like the rule that you should never spend more than 10-20% of your gross annual income on the purchase of a car. So if you earn $50,000 before taxes, then you should not spend more than $5,000 - $10,000 on a car.
It might make you “feel” important, but throwing that much of your money towards a depreciating asset is not smart.
This goes against everything that you will see being driven on the road, but if you don't want to have a car payment for the rest of your life, then you need to learn how to DRIVE within your means.
A. I love the software program YNAB (You Need a Budget). It is the best system in my opinion for working with your budget and allowing everyone to see how much has been spent and how much is left for each budget category.
Here is an affiliate link to get $6 off your purchase (http://ynab.refr.cc/QMDNBWS). You can try YNAB free for 34 days, but I promise you will love it.
And just so you know, I don’t just like YNAB for the affiliates, I use it for my personal finances each and every day. Just ask my wife.
What is this page about?
This page is dedicated to answering some of the most common questions that we have heard from our class members.
If you can't find the answer to your question below, please feel free to fill out the form below and we can answer it!
This page is designed to provide accurate and authoritative information with regard to the subject matter covered; however, it is offered with the understanding that the author is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Disclosure of Material Connection
If you purchase a product or service I reference next to a link you click, I will receive an “affiliate commission.” I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
But Remember: Regardless of whether I receive a commission, I ONLY recommend products or services I use personally and believe will be good for you.