Money Management Thread

[russwest0]

As I'm getting older I'm finally becoming financially independent and it's epic.

In a 3 month stretch of moving out on my own, I cut ties with my old cell phone company, opened a new bank account, got a credit card, and have completely changed the way I handle my finances.

What I don't get is why more people don't simply automate their finances and set it up so that their money works for them? I know people like my grandma who has plenty of money but takes no steps to let it accrue her more money or anything like that.

The process of simple money managing seems pretty simple to me.

For anyone who only uses a checking account and doesn't yet have a credit card, I'd reccomend doing this:

1. Apply for a credit card
2. Open a savings account + checking account w/ an online bank. I chose Ally.
3. Turn your credit card into your new debit card, and make all purchases on it.
4. Direct deposit work funds into savings account w/ online bank
5. Pay monthly credit card bill from savings account
6. checking account is just there, you should never need to use this

This way you'll get the 1% cashback from your credit card, and then you'll get the near 1% intrest from your savings account where all of your money should be stored. It's like giving yourself a 2% raise lol

this may be common sense to a lot of people, I am just learning how to do all of this shit on my own because no one in my family does this. they are all so scared from the fear of getting debt and shit that they just use a checking acct and a debit card, nothing more.

If anyone knows more about CD's, investing, and shit like that, maybe we can talk about it in this thread

[russwest0]

for an initial question, I'd ask if anyone can recommend a good software to get for managing finances.

I want something that will link to all my bank accts, show graphs of my finances so I can see whats going where and I want it to let me control everything within the software

[navy]

How much are you charged for the Credit Card interest?

[russwest0]

How much are you charged for the Credit Card interest?

im not because i always make the full payment on it.

im trying to find a software to use and i'll eventually have it all completely automated so that the credit card's max payment gets paid in full each month

[Jailblazers7]

Might not be an ideal strategy. Running up high credit card bills (even if you pay on time monthly) damages your credit score because one of the components is how much of your credit limit you are using monthly.

But seriously, people should use an app like Mint where you can link your cards to the app and it will track your spending patterns. Really good for budgeting.

[9erempiree]

for an initial question, I'd ask if anyone can recommend a good software to get for managing finances.

I want something that will link to all my bank accts, show graphs of my finances so I can see whats going where and I want it to let me control everything within the software

Quickbooks...or make a custom Excel spreadsheet.

[embersyc]

I'm using a custom excel spreadsheet... very custom... to track my finances.

If you know Visual Basic (or any programming language that will help you understand VB) you can do some ridiculous modifications to excel.

[9erempiree]

I'm using a custom excel spreadsheet... very custom... to track my finances.

If you know Visual Basic (or any programming language that will help you understand VB) you can do some ridiculous modifications to excel.

What kind of modifications?

[enayes]

I am doing a very similar thing, have been since I was 20 (I'm 24 now). I also use Ally and pay for everything with my credit cards. One thing I would recommend if you haven't done this already is taking advantage of all the sign up bonus offers that are floating around. I just opened a Discover card just to get the $150 bonus (after spending $750 in 3 months, which I would be doing anyways). A lot of people are worried about having multiple credit cards but it's an easy way to make money. I'm up to $850 now on cash I earned just from bonus offers, and this is all in the last 6 months.

Might not be an ideal strategy. Running up high credit card bills (even if you pay on time monthly) damages your credit score because one of the components is how much of your credit limit you are using monthly.

But seriously, people should use an app like Mint where you can link your cards to the app and it will track your spending patterns. Really good for budgeting.

Using a credit card to pay all your bills/gas/groceries, etc shouldn't cause you to have to "run up" your credit card bill. And if you're worried about using too much of your credit limit, you can simply have multiple cards, so therefore you aren't using very much of your total credit.

[enayes]

How much are you charged for the Credit Card interest?

It is very easy to avoid EVER PAYING INTEREST.

How do you do this you ask?....You have to pay your bill each month.

[Godzuki]

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B) Get Shop Discover card

C) Get Amex blue cash preferred card


-use Discover on all online orders 5%~ cashback, and 10% if its a ShopDiscover vendor (quarterly program) up to a limit

-use Amex on all groceries for 6% cashback, dept stores + gas stations 3% cashback. plus card looks pimp. spend $1000~ in first 3 months get $100 back.

best reward cards out right now

[It's A VC3!!!]

for an initial question, I'd ask if anyone can recommend a good software to get for managing finances.

I want something that will link to all my bank accts, show graphs of my finances so I can see whats going where and I want it to let me control everything within the software

Citibank has an option attached on their online platform. It's amazing and every bank should offer a similar service. I am able to link any financial account to my citi account and it shows me graphs and other charts for whatever information i choose to see. There are apps that do that as well. The most known and safest platform is credit karma. In addition to a free credit score, you can link your bank and it will give you the charts and other important for mission that you may want to view

[KyrieTheFuture]

As I'm getting older I'm finally becoming financially independent and it's epic.

In a 3 month stretch of moving out on my own, I cut ties with my old cell phone company, opened a new bank account, got a credit card, and have completely changed the way I handle my finances.

What I don't get is why more people don't simply automate their finances and set it up so that their money works for them? I know people like my grandma who has plenty of money but takes no steps to let it accrue her more money or anything like that.

The process of simple money managing seems pretty simple to me.

For anyone who only uses a checking account and doesn't yet have a credit card, I'd reccomend doing this:

1. Apply for a credit card
2. Open a savings account + checking account w/ an online bank. I chose Ally.
3. Turn your credit card into your new debit card, and make all purchases on it.
4. Direct deposit work funds into savings account w/ online bank
5. Pay monthly credit card bill from savings account
6. checking account is just there, you should never need to use this

This way you'll get the 1% cashback from your credit card, and then you'll get the near 1% intrest from your savings account where all of your money should be stored. It's like giving yourself a 2% raise lol

this may be common sense to a lot of people, I am just learning how to do all of this shit on my own because no one in my family does this. they are all so scared from the fear of getting debt and shit that they just use a checking acct and a debit card, nothing more.

If anyone knows more about CD's, investing, and shit like that, maybe we can talk about it in this thread

Pay someone to do it for you unless you plan on making it your job

[KevinNYC]

Might not be an ideal strategy. Running up high credit card bills (even if you pay on time monthly) damages your credit score because one of the components is how much of your credit limit you are using monthly.

But seriously, people should use an app like Mint where you can link your cards to the app and it will track your spending patterns. Really good for budgeting.

If you pay your balance off aren't you using 0% of your credit limit?


Isn't that on the outstanding (after 30 day balance)?

Edit:
Seems like it would only affect you if you applied for more credit WHILE your mid month balances are high. If you paid off and then didn't put anything new on the card, then applied for credit, you should be oK
http://www.experian.com/blogs/ask-ex...ll-each-month/

[KevinNYC]

If you want Mr. Richie Rich about it, you can set up a second savings account and take 20% of your direct deposit and then put that away as a true savings account.