How do yall budget?
I'm mid 20s, used to being frugal, but now have a meaningful amount of money to spend. I still feel uncomfortable spending too much money on dinners or travel or hobbies though. Like a $100 dinner for 2 feels reckless to me, even though it's not a real issue. And I look at people that own boats and couldn't imagine spending that money, even though, again, it wouldn't be a real issue. How do yall decide whats a reasonable amount to spend vs save? TC 300k
100$ dinner is reckless. You will soon realize making memories by doing simpler things or adventures or nice conversations is what matters. Even as simple as sipping coffee in balcony with someone you can have nice conversations
If you don’t feel comfortable spending much money don’t spend it. Why do you think it’s a problem you need to solve?
Yeah I guess not a large problem tbh. I just see others around me who make less, spending way more money day to day. Buying random stuff all the time. Makes me question if I'm living wrong by holding myself back
if you think that OP, it’s not a money problem. you don’t have your own principles around how to make decisions - that’s the problem
We live a simple life and never budget
1. Bucket all your expenses into your budget 2. Adjust the different buckets based on your finances, goals, and comfort Now you can comfortably spend and make decisions.
Also $100 for two people isn’t a lot. Maybe don’t do this everyday if you can’t afford it, but once in a while shouldn’t be a problem with a $300K TC. But it’s up to you if you’re comfortable or not.
If $100 seems like a lot for dinner definitely stay away from owning a boat. I set a max amount I want to spend in a year. If I’m getting close to that then maybe I cut back a bit. If I spend less and I’m having fun then that’s just gravy. Nothing wrong with being frugal as long as you’re not denying yourself things you want.
How do you decide that amount?
Depends on tons of factors. For me, my yearly savings target total is 1/3 of my total pretax income. So for you if you could put $100k away into all combined savings, 401k, brokerage, etc. in a year I’d feel okay spending whatever is left. And again if you spend less then great. But everyone’s situation is really different so I hate rules like x amount or y percent.
I don't budget but I keep track of my spending with apps like Monarch, so that I can keep an eye on trends and correct if necessary.
YOE? NW?