We are the Kronson Family and on this channel I document our journey to financial independence and share information and tips for others to learn and join me!
I heavily modified one that I found online. You are free to use it. Just make a copy from the google sheets link. You can modify as much as you need from there if it works for you.
It’s great you are tracking this level of detail. That roof costs is really significant. We replaced ours years ago and was no where close to that. But like everything else with costs, it’s all gone too high!
We also replaced 6 windows, but they were just $6k or $7k of the cost. We also had to choose to cover our sky lights because they would have been another $7k.
@@kronsonfamily Makes sense, it’s crazy the costs in repairs. We are doing some door replacements now and it’s thousands. Crazy how much things go up and never down. 😊
Would u consider pulling out $750 from your emergency fund to pay in full Student Loan #2? As it's such a small debt & u are only paying interest on it; isn't it wiser to just knock it out?
I believe the interest rate is so low that we're making more money by keeping the money in our savings account. But it is crazy to see the balance keep going up right now.
I have also taken advantage of the low interest rate of a 401k loan. That's the one thing i disagree with on the dave ramsey method. I understand why he hates 401k loans and his thought process on keeping your 401k intact due to stock market gains however because the loan is a very low interest, and it all 100% goes back to your own account. That's a terffic option, in my opinion
I can see how it can be a bad thing because you are missing out on the returns but I think it could be a great tool to pay off high interest debt as long as you continue to also contribute as you normally would. Definitely better than paying someone else interest.
You are missing the point Ramsey is making and might not said it like it makes more sense to you! What he is saying, don't touch your 401K, especially when you might just be taking it out BECAUSE IT IS EASY! Compound interest is the strongest power there is. If you took 40,000 out of your 401K, pay back over 5 years, you get the interest added back to your account, say 310.00 per;month, but 39,700 not making anything!
i agree- why rob from our future- when the economy has so many job openings. Go get many second jobs and work tons of overtime. I heard that nobody has ever died from working to much. It appears that this family is just moving debt around by borrowing and especially concerning when a person gets desperate to borrow from their future. Not for for me - works for some- but not for all.Glad this family has a great coverage over there head with the enormous roof loan that was taken.Good luck! Also- how will they pay off the roof- when they had to borrow for everything else. It also appears that her behavior of creating debt is always coming back with low interest being offered. None of this has any proven scientific methods- in becoming rich over investing the way this family is.
I heard about doing it that way recently from another channel. I wish they made it easier to pay the high interest loans first. I hate paying interest.
Subscribed! I love that you’re a digital budgeter. I am too and there aren’t too many on RU-vid, so it’s nice to see someone I can relate to doing this.
Thank you. We only tried the chain store both ordering online and ordering from the store because it wasn't something they kept in stock. Eventually we ordered from an online supplier that shipped it freight and it seems to have arrived intact.
Good morning, Great video ! We do something similar. We both need our own "mad money," as my mother in law calls it. 😊 my husband has his own account for spending money for his bicycle hobby, etc... a set amount goes in every week, and he is free to do as he wishes. We started doing this about 3 years ago, and it works out perfectly....he has learned how to self budget his account so he never has to ask me if we have the "money" for something that he wants to buy.
I love doing it this way so we both feel free to spend however we want on personal interests. Personally I like keeping it as a percentage of our salary instead of a fixed amount so we are contributing an equal share to the household, in our case 80% to the household and 20% personal.
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Really enjoying your videos! Can you share why your husband keeps a portion of his paycheck for his own personal spending and savings and not grouped into the family budget? I hear you mention that in your videos frequently. Thanks
Great video! May is also a magic month for me . I am really trying not to spend any of that pay. I haven't added it to my budget yet. I'm going to try to pretend it's not there and then use it to create a month ahead fund.
Pretty interesting way of budgetting. And I kinda like the spreadsheet. Only things I would be missing is: - some kind of way to know what the money was actually spent on, for future ref - a yearly overview, with some charts possibly The system I am using right now doesn't do the sinking funds which is something that im missing as i try to justify my spending on non essentials. I do have a couple questions about the template tho: 1: with the sinking funds, whats the "actual" column ? if you budget 100 for home, when will the actual be different? isn't it just a virtual envelope ? 2: does having a "goal" in sinking funds not mean that you also treat it like a tiny savings ? 3: How do u do rollovers from year to year ? just fill in the current value from last years dec tab into this years jan tab ?
Thank you @BelgianNoise! I'm working on an annual summary page with a couple graphs, I just haven't added it to the shared version. To answer your questions: 1. There may be some months where your income is higher or lower than what you budget for or you need to switch around your priorities so you may budget 100 for home and then realize you have more income and can throw in 200 or you might need to put some of that budgeted home amount into car if a repair comes up and your car fund wasn't enough. It is just a virtual envelope but what you plan to fill vs what you actually fill can differ. 2. I count my goals as a way to not overspend in a year. They can also be mini savings so you can fill all or some of your sinking funds up front but I like to try to contribute to them evenly throughout the year. 3. Right now I think copy and paste is easiest. I have an excel document that links to previous excel budgets and it's a hassle if I move the files around or rename them. But some people like to start fresh with their sinking funds each year so maybe just move all the remaining funds to a general savings at the end of the year could work as well. Hope that helps!
I am glad I found your channel, I really like your spreadsheet! I too will have a 3 paycheck month and will have quite a bit of overtime on those checks. I have a very basic zero based budget where I pay my bills and leave a fixed amount in my checking account for an emergency fund. And with any surplus funds I have been putting into 4 week T-Bills for the past year or so. I like the liquidity of it and has been working for me so far.
I love the honesty. Most RU-vidrs are completely out of touch saying "I only put 1k/day into my brokerage!" and I'm thinking "this dude thinks that's little? How out of touch can you honestly be to say " only a little"
Haha so true! I've been so fortunate to be able to contribute as much as I have but it is hard right now and I know it is hard for many other people as well.
@@kronsonfamily absolutely! I feel the same way. I would definitely say I'm blessed also because I could be in a much worse position. It's easy to want to be in a better position but we can forget that we're in a better position than many other people.
Awesome video! I appreciate your honesty and transparency. I hope all continues to go well for you and your family. I do track my family's net worth as well.
I have definitely done the same-- sometimes you have to shuffle or pause savings to make things work financially. Some years I could save more for retirement than others. Best of luck to you as you tackle your debt!
Great video! ❤ We do count our house in our net worth. It just makes me feel a little better to know there is a light at the end of the financial tunnel. I haven't been contributing to my 401k for the past 2 years because we are paying down debt via the Dave Ramsey system and he advises not to do a 401K if you have too much debt. However, I really feel like I need to do something because we do have a company match that i am missing out on so this year when I got my raise, I took half of that percentage and put it into my 401k so i could at least get some company match out of it.
I definitely think taking the company match is a good idea. It's free money plus it usually decreases your taxable income since most contributions are pre-tax. You almost save in taxes what you contribute.
Hi, thank you for sharing. ive never heard of it being controversial to have a home on your asset list for net worth...cars, sure because its a depreciating asset but a house?!
Also, a house is not really an "investable" asset. People who discuss financial assets (such as advisors - who can gain off of assets under management) care about this categorization because it more closely aligns with amount that can be exploited for gain.
Hi 👋 Thank you so much for sharing your very interesting history not just about finances but also your education & low pay jobs. I think u are both very wise to pause savings to focus on debt repayments. Most people don't know that at any time a creditor can "call in the loan" & demand payment in full or face recovery costs - even if u have never defaulted! I don't carry any debts but I also don't own a home. I often feel "poor" so I count up all my sinking funds and realise that whilst I don't have spending money & I have very little leisure money; all my future bills are covered! That definitely reassures me that I'm not poor. Like u, I do $0 based budgeting. 💜
Great update. I like that you have sinking funds for everything. My wife and I have recently adopted this idea and it’s helped us out a lot. What’s the benefit to having a sinking fund for groceries? Why not have a set amount to spend on groceries? I feel you could control your money if you set a limit each week or month on how much you’re gonna spend on groceries. Excited to see you guys grow financially in future videos.
We have a sinking fund for our groceries mainly because we don't grocery shop consistently or buy many of the same things every time. It's usually like if we run out of chickpeas, we fill up another bag of chickpeas and ditto for all our beans, grains, and nuts because we shop for those in bulk. So some trips are much more expensive than others and we may have 2 of those in one month and none in another. We also sometimes do a CSA which is an upfront cost of a few hundred dollars to get local vegetables all season long.
Hi 👋 Sorry to hear about your time sheet mistake & overpayment. I'm just wondering if when your were overpaid u, do u still have that surplus money, to pay towards this month's expenses? I'm only 3/4 way through the video so maybe u say at the end!
It went into the March budget as either sinking funds or saving towards the roof. So the money is there for the bills but if we can't cover all the expenses with the second paycheck, I'll have to pull from one of the funds.
Hi, where did the money come from to pay all this stuff since your check was so low? You dont have any rollover or inflow from savings on your spreadsheet.
I really need to work out a system where I show a rollover or that I pull from sinking funds. I guess we might be considered to be a "month ahead" in that we pay all of the expenses that come out at the beginning of the month with money from our paychecks the month before.
I also get 20% but I just include all my personal spending in these budgets. He also pays for his student loans out of his 20% since he took those out before he met me. And I pay for my retirement account loan out of mine. We've talked about decreasing that percentage and it might be something we do later this year if our budget remains tight.
Thank you. There was no event that caused damage to the roof, it was just old so I don't think insurance covers something like that but to be honest I didn't even check.
It is good that you are tracking where money is going, but it's time to analyze the categories and make tougher decisions on spending. It will be almost impossible to get to your goals with this current income and expense set up. The mortgage and car notes are really high for the income coming in and leave little room for savings and misc expenses.
I definitely agree. We jumped into the car purchase a bit too soon and I did not anticipate having to pay for daycare. Fortunately I will be going back to a full time salary in May and the car loan was for only 3 years, so only 2.5 more to go!
