conversation: User (benny_mod): "I have had good jobs since I have been out of college (graduated 2011) ranging from $50k at the start to $75k now. Single no kids. I used to not pay attention other than I knew how much I got paid so I knew how much I could spend. Cards were always paid off every month in full. I would often swipe a card 2-4 times per day: coffee, lunch, happy hour, dinner and shopping. I used the excuse "I am putting 6% (matched) into my 401k so it's ok if I don't save much." \n\n\nThis all started when I realized how much money I make and have nothing to show for it. Every year I would do my taxes and see I made like $60k and had $3,000 in my checking account. Did I really spend that much money this year? I got aboard the Dave Ramsey train and started paying attention to money and budgeting. The main driver I had to keep saving was I realized if I took my tax refund and my bonus this year I could pay off my student loans and be 100% completely and totally debt free.\n\n\nSo here I am 4 months in and it is awesome. I am no longer afraid to look at Mint because there is not much there. There are no more major swings in my bank account. I take out $100 per week as lunch/out to eat/beer/happy hour money and I have found that it sometimes lasts in to the next week. I successfully paid of all of my student loans and don't owe anybody anything. \n\n\nBudgeting doesn't have to been an exact science. You will not be perfect the first few months. The main point the first few months is to just start realizing where the money is going. Then once you start to quantify some savings it motivates you to continue and refine your approach. \n\nEdit: For those saying I can budget and still use credit cards. I realize this, but I have found that I spend more when I use them. I was like everyone that always said "I use them responsibly and only buy what I would normally buy." However, what I found when I actually tested that theory is that I actually do spend about 25% less when spending cash. \n\nEdit2: For example I had a budget of $500 per month for restaurants based on using credit cards for all transactions. However when I switch to cash only I found I spend less than $400. So if I just kept budgeting as normal I would still be at $500. But by using cash I realized I spend less simply because it is cash. "
  Self: "Hm but credit cards if used wisely can coexist with budgeting. I use credit cards exclusively, no cash at all. Track all my expenses with mint so they are categorized. I set my budget in mint and I know exactly where I fall. In fact I also come in under budget because I like to see how my bar graph of spending falls short of the budgeted amount. I get 2-5% back on every purchase and various other benefits like purchase protection, extended warranty, fraud protection. "
  Cainga (Cainga): "This really comes down to self control.  I find it hard to believe but I always read about people having that problem. \n\nThe cash back saves me several hundred a year.  And there are sometimes promos and deals. Like back in Dec I got $10 off at Amazon for using a certain type of card. "
  gonzobon (gonzobon): "Same. 6% back on groceries with my Amex adds up over the course of a year. "
  