Comments on: Step 1: Budget for Financial Independence http://www.justonemoreyear.com/step-1-budget-for-financial-independence/ One couple's story of escaping 9 to 5 until 65 Wed, 20 Jul 2016 17:22:09 +0000 hourly 1 https://wordpress.org/?v=4.5.11 By: Erik http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-103 Wed, 05 Aug 2015 20:42:27 +0000 http://www.justonemoreyear.com/?p=419#comment-103 Excellent post. I have started a budget too that is very aggressive. I’m starting off aggressive because over time, I can always relax the constraints. I hope to achieve the rest of my 2015 goals this way of paying off my student loan and building my savings account!

Have a good day,
Erik

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By: DP http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-99 Tue, 04 Aug 2015 23:35:49 +0000 http://www.justonemoreyear.com/?p=419#comment-99 Bryan,

No problem with the shameless plug – I’m all for that! I actually have not read Your “Money or Your Life” yet – I wasn’t even familiar with it until you mentioned it. I will certainly add it to my list, though. If you have a chance, feel free to take a look at my resources page as well. There might be something there that catches your eye. It’s a little investor heavy as that is my main reading focus.

Thanks for the recommendation and the comment back! I’ll definitely take a more in depth look at your page.

-DP

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By: Bryan http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-97 Tue, 04 Aug 2015 22:42:52 +0000 http://www.justonemoreyear.com/?p=419#comment-97 DP,

Thanks for discovering us and commenting!

It is amazing how many times I have mentioned the Millionaire Next Door in my posts. It really became apparent as I went back through and started adding some Amazon Associates links to past articles. The big take away point from this book; these millionaires really lived a very non-flashy and conservative lifestyle.

If you have not already read Your Money or Your Life, I highly recommend it. I suggest you check it out at the local library if you can. If one is not available, a shameless plug on my part, please click the link on my resource page to buy a copy from Amazon. Either way, I am curious if you have read the book and if so, did it have an impact on you?

Take care,
Bryan

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By: DP http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-94 Tue, 04 Aug 2015 17:24:05 +0000 http://www.justonemoreyear.com/?p=419#comment-94 Hi Bryan,

First time I’ve come across your site. Great post! I got a lot out of the Millionaire Next Door book, as well, and hope to apply some of their lessons to my every day life. Your article has great advice. As you mention, budgets are not fun – initially – but after doing it for a while and seeing where we can trim our expenses, I almost look forward to revising them to see how much more we can save.

Keep up the good work! I hope to one day retire early, as well.

-DP
http://www.somedayextraordinary.com/

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By: Bryan http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-92 Mon, 03 Aug 2015 18:14:49 +0000 http://www.justonemoreyear.com/?p=419#comment-92 Luke,

It is great that you have discovered some benefits to budgeting each month. Especially early on in life! For me the action that really helped is when we reviewed our actual expenses to what we budgeted. It made us very aware of where our money leaks were and how we should plug them.

I like the money envelope method because it requires less transactions and tracking in Quicken. We start with an amount each month for those categories and withdraw the cash from the bank. Peeking at the envelopes during the month gives us immediate feedback as to how much we have left to spend. Using a debit or credit card makes it too easy to buy and overspend. 🙁

Take care,
Bryan

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By: Bryan http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-91 Mon, 03 Aug 2015 18:07:14 +0000 http://www.justonemoreyear.com/?p=419#comment-91 Holly, we are using a zero sum approach as well in that we start with a fixed income and all our dollars must have a named home or category where they will go.

I know for you and Greg your budget is based on your prior month’s income. That is a smart move for people that have variable incomes that change from month to month. It makes it so much easier to not overspend since you know what your income was for the previous month. It also is a great way to have an extra month buffer of cash in your bank account.

Thanks for the comment and take care!

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By: Holly@ClubThrifty http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-89 Mon, 03 Aug 2015 12:43:29 +0000 http://www.justonemoreyear.com/?p=419#comment-89 We use a zero-sum budget. We create a new one at the 1st of every month, and do our best to live by it until the next month. It works great 99% of the time, and has made a huge difference in the amount of money we have been able to save over the years!

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By: Luke Fitzgerald @ FinanciallyFitz http://www.justonemoreyear.com/step-1-budget-for-financial-independence/#comment-87 Fri, 31 Jul 2015 11:44:49 +0000 http://www.justonemoreyear.com/?p=419#comment-87 Nicely done. I’m a big fan of budgeting. We buget on a monthly basis, and it has been by far the most impactful habit we picked up after getting married.

We do track – but do it passively. We use the envelope system so there really is no tracking per se. It’s worked out great. Other than small “emergencies” we havent deviated since we’ve been married (2 years)

The paradox of our budgeting is that we are very strict and at the same time very loose. We always hit our goal but spend zero time stressing or worrying about it. That’s the power of a budget!

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