Money Management when Income is Erratic - Tilted Forum Project Discussion Community

Randerolf · 11-03-2005, 02:23 PM

I am a waiter who is paying for college himself. I’d like to get a better grip on financial planning. My efforts are going well, but I’d like even more improvement.

The system that I’ve been using has been an envelope budgeting system with categories like Savings [bank](college/ extreme emergency), Insurance [bank](checking/ manageable emergency), Consumption (food etc), New Car, Date, Clothes, Fun, Self, Electronics, and Travel. With each category is a fund for each generalized activity. This way, money is allocated and spent, rather than just flying out of my pocket.

As a waiter, most of my income is received as cash. I have a coupon folder for each category and distribute the funds before they are spent.

I take 50% of my tipped income and save it right off the bat. Then I put money aside for my bills. Finally, I allocate money towards my savings goals (fun, date, electronics).

I didn’t feel comfortable with so much cash on hand in my questionable neighborhood. So when my Travel and new car funds reached the thousands, I put them into my savings account. It is a pain in the ass to view the data (Savings – travel – new car = real Savings amount. I made an excel workbook to keep things straight, but it can be a bit tedious.

1 Would it be possible to open several ING accounts to hold my many allocations?
My credit union’s rate for savings is pretty low & ING beats even the money market accounts in my area. [see bottom] There would be greater clarity and security this way.

2 Would Quicken help me manage my money better?
3 and Easier? I see it online OEM for $23. [I have a $3,000 in a biotech mutual fund laying around for years and just started enrolling in my company’s 401(k).]

4 Any other personal finance advice for those of us who have irratic income or me personally?
Thank you for your time and advice. I'll be glad to answer any questions that you have.

Relavent links
Quiken 2006
ING Direct
My Credit Union's rates
Vystar CU's Rates (local)
Another Local Credit Union's rates

Cynthetiq · 12-21-2005, 09:31 AM

my wife uses the envelope method but via accounts. We have enough accounts that make the fees nonexistent.

As far as quicken, I would like her to use it, but she's not still. I want her to use it because then I can understand the finances. As it stands right now, I don't know anything about them.

Xazy · 12-21-2005, 10:05 AM

ING you can open as many accounts as you like. I for one have 2 different savings and a couple of bonds.

Matt Freeman · 01-02-2006, 01:19 PM

If you like your envelope system but want to take it online (assuming you were using real envelopes to hold your tip cash), you should try this piece of software: Budget. They make both a Mac and PC version.

I can only speak for the Mac software, but it has been a life saver for me and my fiancee. I have ADHD and most budgeting/checkbook balancing systems could not hold my attention... but something about dragging and dropping funds between envelopes is almost, no, actually fun! It's especially helpful in our quest to climb out of debt.

You just need one checking account, and Budget will do the rest of the differation for you.

As for your savings questions, I'll leave that to others. As I said, still climbing out of debt.....

11-03-2005, 02:23 PM	#1 (permalink)
Randerolf Fireball Location: ~	Money Management when Income is Erratic I am a waiter who is paying for college himself. I’d like to get a better grip on financial planning. My efforts are going well, but I’d like even more improvement. The system that I’ve been using has been an envelope budgeting system with categories like Savings [bank](college/ extreme emergency), Insurance [bank](checking/ manageable emergency), Consumption (food etc), New Car, Date, Clothes, Fun, Self, Electronics, and Travel. With each category is a fund for each generalized activity. This way, money is allocated and spent, rather than just flying out of my pocket. As a waiter, most of my income is received as cash. I have a coupon folder for each category and distribute the funds before they are spent. I take 50% of my tipped income and save it right off the bat. Then I put money aside for my bills. Finally, I allocate money towards my savings goals (fun, date, electronics). I didn’t feel comfortable with so much cash on hand in my questionable neighborhood. So when my Travel and new car funds reached the thousands, I put them into my savings account. It is a pain in the ass to view the data (Savings – travel – new car = real Savings amount. I made an excel workbook to keep things straight, but it can be a bit tedious. 1 Would it be possible to open several ING accounts to hold my many allocations? My credit union’s rate for savings is pretty low & ING beats even the money market accounts in my area. [see bottom] There would be greater clarity and security this way. 2 Would Quicken help me manage my money better? 3 and Easier? I see it online OEM for $23. [I have a $3,000 in a biotech mutual fund laying around for years and just started enrolling in my company’s 401(k).] 4 Any other personal finance advice for those of us who have irratic income or me personally? Thank you for your time and advice. I'll be glad to answer any questions that you have. Relavent links Quiken 2006 ING Direct My Credit Union's rates Vystar CU's Rates (local) Another Local Credit Union's rates

12-21-2005, 09:31 AM	#2 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	my wife uses the envelope method but via accounts. We have enough accounts that make the fees nonexistent. As far as quicken, I would like her to use it, but she's not still. I want her to use it because then I can understand the finances. As it stands right now, I don't know anything about them. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

12-21-2005, 10:05 AM	#3 (permalink)
Xazy People in masks cannot be trusted Location: NYC	ING you can open as many accounts as you like. I for one have 2 different savings and a couple of bonds.

01-02-2006, 01:19 PM	#4 (permalink)
Matt Freeman Upright Location: Santa Cruz, CA	If you like your envelope system but want to take it online (assuming you were using real envelopes to hold your tip cash), you should try this piece of software: Budget. They make both a Mac and PC version. I can only speak for the Mac software, but it has been a life saver for me and my fiancee. I have ADHD and most budgeting/checkbook balancing systems could not hold my attention... but something about dragging and dropping funds between envelopes is almost, no, actually fun! It's especially helpful in our quest to climb out of debt. You just need one checking account, and Budget will do the rest of the differation for you. As for your savings questions, I'll leave that to others. As I said, still climbing out of debt.....