Throwaway because this shit is embarrassing.
So, a bit of a backstory, I grew up dirt poor. Like one missed paycheck away from eviction kind of poor. I routinely watched my mother sob because she didn't know how we were going to make rent. My father nearly killed himself working a total of three jobs. Two full time, and one part time (weekends, ten hour shifts per day). We still could never catch up.
This was by no means their fault. We had money right up until my little brother was born. He was born very sick, and my parents couldn't put him on their insurance (I don't know the specifics. I never really asked. I just remember overhearing my mom say she wished they could find a way to add him to their policy.) His medical costs (constant overnight stays, various treatments, and a few surgeries) drained our account entirely.
I will always be eternally grateful for what my parents endured to keep us afloat. I will always respect the man my father is, and how strong my mother was to stay home and care for a very sick child.
That all being said, I never learned about money as a kid, I only knew that we never had it. And when I grew up, and moved out, for a few years, I had the same problem. I was paying ridiculously high rent for a piece of shit apartment, I had no credit, and no real savings and as a dumb 19 year old, I decided that going into debt with (Edited our car dealership name) was the best way to get a car.
So I got a three year loan on a car. Said car barely lasted that three years, and only served to throw my then-fiance (now husband) and I deeper into debt.
Up until a little more than 2 years ago, we always both made minimum wage (just under $8/hr). Then my husband got hired on at a place making $14/hr. Prior to this, we never had enough money for bills, and routinely had to do groceries on $75/week. We ate a lot of pancakes, eggs and spaghetti, because those were the cheapest things that would fill us up for the longest.
Anyway, my husband very recently landed a new job with a significant wage increase. He now makes $23.50/hr and I'm self-employed. Together we make about $3,700/month. If I'm able to do what I think I can with the business, that will soon go up to about 5,700/month.
Suddenly we have a lot more money than we used to, but neither of us really know how to budget. We've never had any surplus before. We always played the "who gets paid this month" game. We were always right on the edge of financial ruin. It was rare that we ever had more than $20 in the bank the day before we got paid.
Anyway, our expenses are as follows:
Rent: $750/month Cars: $0 we own them both outright Electric: ~$175/month Internet: $55 Phones: $206/month Gas/Food: ~ $700/month Other outstanding debt: $900 total
We should have quite a bit of money left over every month, but I find that we're spending it as fast as we make it. I swear, I feel like if I DON'T spend it, it'll just all disappear somehow. I know that sounds incredibly stupid, but I think it has to do with the fact that I've literally never been in a position in my life in which I've had a decent amount of extra money. Also, the fact that it seemed like any time I DID have a little extra (tax returns, Christmas/birthday gifts) there was always something that needed to be paid right then. For example, a few years ago, we had a car break not two days after receiving tax returns, and needed a new one. (We don't bother with car loans anymore, we always just buy semi-decent cars outright. So we spent our 2k, and bought a cheap little car.)
Now I'm in a position in which I feel like I'm failing even worse than when I was broke. We have extra money, and because of some backwards thinking, I can't seem to put any away.
So, guys, I need advice.
How do I budget?
Is it best to set up a savings account that's separate from our normal account? Or is there a different or better way to do it?
How much is appropriate to set aside for fun?
How do I get over this fear of just losing money if I don't spend it first?
Submitted May 03, 2017 at 04:14PM by freewaythrowaway http://ift.tt/2pyox3n
