Burn Rate
Reading time: 3 – 5 minutes
The term burn rate refers to how quickly individuals spend their money, particularly their discretionary income. AKA it means how fast a Sucker, Customer spends their money when they get it. A lot of cats who are living check to check spend money in anticipation of a check arriving. Most cats who get paid once a month have a heavy burn rate as they are floating money on credit cards and their debts. In fact the whole idea of payday loans signifies exactly that most Suckers and Customers spend money before they have it. They have such a high burn rate they actually need to borrow money from others.
Don’t feel bad, burn rate usually comes from startup companies backed by venture capitalist. So most of your dot.com burn through money by their investors before they actually turn a profit. Facebook has been up for years before they finally offered advertising and started making money so I’m sure they were burning through money like crazy. How it applies to you and me is a way to forecast for rainy days. I myself always keep 6 months to a year of cash that if all hell broke loose I would be able to maintain what I eat and how I live for one complete year. Even without the backup plan my burn rate is very low as I don’t spend too much money on things I don’t need. And, tricking isn’t my hobby or a habit I have to break so my burn rate is very very low.
What keeps most cats from really coming up is them not stopping to analyze how much money they are spending per month. What are your true expenses like rent, food (that goes in the refrigerator), car note, gasoline and electricity in comparison to what you like to have such as cable, eating out and buying clothes. Most cats who have a high burn rate usually spend too much money on stupid shit and they actually think is a necessity. As a result they can never save anything for a rainy day. Then you have some Suckers who think burning money fast is a sign that they are rich but are one layoff away from losing it all.
The major thing to take away from learning your own burn rate is to recognize how much money you actually need to survive. With that knowledge you can correctly forecast how long it will take you to save money for a business. With that knowledge you can correctly forecast how long it will take you to save money to fill up your rainy day fund. With that knowledge you can correctly forecast how long it will take you to save money so you can return to your BMF lifestyle that you like to front. I know that one caught you off guard but if you have your foundation covered you can spend the money however you want. Really if you figure out how much you need to spend you can figure out how much you can trick.
Burn rate just means how fast you go through your money. Are you the cat who has nothing by the time your next check arrives or are you the cat that didn’t spend it all and have some left over. All you have to do is start by thinking about what is the most essential thing you need to survive… aka food, car/subway and rent/mortgage. Once you know that you can save the rest to the point where you don’t have to save. 1 year for me just makes me feel good. Your number might be less or more but no matter the number you should figure out your burn rate. This is also why some of you guys have parents that paid all of their bills at one time because they wanted to make sure they didn’t burn through money they actually needed to survive.
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Church! Church! Church!
I’m 1 month into My budget and I swear it amazing the Transformation that occurs. I mean your whole Thinking changes, you don’t realize how much tricking you do until you start accounting for it.
I went from peeling notes every other day to picking up dimes off the ground. Lol.
When I told My Lady that I feed Myself 3 square meals a day for about $35 a week she thought I was INSANE. But its true and I eat good and healthy cuz I’m cooking at home now and eating natural grains for breakfast instead of paying for junk that cloggs up your system.
See, because I had a decent cashflow I wasn’t sweating My burn rate but now that I’m budgeting I’m finding free discretionary cash ALL OVA THE PHUCKIN PLACE
Enuff so to where after only a month I bout to establish a “vacation fund” wit it.
Church on dey a*ses with dis one FreeMan.
Church!
Lol
I’ve had a savings account from by the time I was 13 thanks to my mom. I’ve always saved money here and there because I knew the importance of having money for a rainy day because shit happens. When I started working, I would save a certain amount every check. Even during college I kept a couple stacks in the bank just in case. It always felt good knowing that I had money there if I ever needed or wanted it. Plus I never needed to borrow money from family or friends even when I was in my teens. Besides, I never liked the idea of asking someone else for money.
I also keep an excel spreadsheet where I track all my monthly expenditures down to the exact amount it costs every month. I even average out how much I spend on gas and food each month by taking what I paid for both every week and dividing it by four for a monthly average. After doing this, I can definitely say that debt is from the devil. It drains your resources. Lesson learned.
Right now, I’m working on getting up to 6 months worth of monthly income saved. I already have the rest of the years rent stashed up. This way if anything happens, I’ll still be able to live like I do now without missing a beat. All the while finding another hustle to keep money coming in. Plus, I’m trying to figure out ways to better spend my money. Maybe reorganizing my monthly bills so that most get paid all at one time. Maybe buying food in bulk once a month. Maybe going out once a month(clubs are a waste of money, literally). Any other ideas?
Suggestions requested from the commenters.
My name is C, and i am a recovering Tricker. I am 27 and looking for any suggestions on how to cut down on monthly bills, eating out etc… i work in outside sales, so i am never in the office so boxing a lunch is kinda hard considering i do not have a fridge where i could store my food.
iwas the cat back in college makin it rain with one dollar bills when Wayne had that song out. oh if i had a time machine now to go back. but now i know the error of my ways i am trying to correct them so when i hit 30 in 3 years i will financially be better off.
So if any one have any ideas how to save on groceries, entertainment, etc.. of websites where i can get cheap date ideas will be greatly appreciated
‘From the Block to the BoardRoom’
-C
Needed this one. Made me look at money a little different. More you on yours, less you need them credit cards, etc. A year..that is amazing to me. My burn rate is too high due to day-to-day survival. Reckless spending is my problem. Man, you and mcdivit85 might have save me from bankruptcy. Any good budgeting software you recommended?
@Boardroom
The first step to recovery is admitting you have a problem LOL. As far as lunch, how about things like soups? They don’t need to be refrigerated and you can carry them anywhere. Just carry a microwavable bowl in your car and stop at a local gas station to use their microwave. I work in an office but I eat soup damn near everyday for lunch. Its cheap, efficient and saves me from spending money everyday.
As far as the tricking, just don’t do it. Its not worth it and it aint cool. I know a dude who was supposedly trying to move into the apartment upstairs from me. This dude had a trick cousin who was saving for his half of the deposit but then spent $600 on watch for his girlfriend. Oh, and he lives with her and her parents. Plus the chick is cheating on him. Then my boy tricked off $350 in a strip club by making it rain. Both of these dudes let tricking cloud their judgement. And all for women who don’t give damn about them. Now, they’re both still living at home.
As far as dating, why not just go out for coffee or drinks for the intial date? Or go for a walk downtown or in a park? Why go out of your way for someone you’re just meeting and trying to get to know? And if the chick is actually feeling you, then she’ll be fine with that. If not, then why even kick it with her anyway? Its about conversation, not compensation. And the chick is real and is feeling you, then she’ll break bread to take you out like you take her out. At least that’s been my experience.
Like Freeman said yesterday, in this game, you only want to associate with people who are helping you move forward. Whether it be your boys or women you’re dating.
@AH
We all just trying to learn from each other here. I’ve learned alot of Freeman and other posters, so I’m willing to give like I take.
@Supreme – Once you learn what you need to really survive you’ll be surprised how much money you save. I pretty much buy the same things at the supermarket every week so I know I can survive under about 100 bucks a month for food. I eat a lot of fruit and wheat bread so those are cheap.
That vacation fund is a big deal as I put some money aside to head to Brazil for Carnival this year. The airline ticket is 1000 and the hotel is 1000 for the week. So in a year’s time all I had to put aside was about 200 bucks a month. Any cat could do that but few do!
@McD – The saving of the money gives you freedom as most people feel pressure because they need the money. Once you put enough aside you’ll find out that you are voluntarily participating in this game. Until we get our own we need to always put money aside to give us that deep breath that these motherfvckers can’t stop us. You’ve been a disciplined cat to this money for a while so you already know how this game works. I myself saved and bought my first car and I had to save for a whole year just to get 800 bucks. Once you know this angle works it’s really a matter of putting money aside. The easiest way is to let the banks push it over to a savings account when you put in your check on direct deposit.
I’ll give you a tip on the next level to saving money. Watch the show extreme couponing as that show right there will shock you into thinking you aren’t doing enough.
@Boardroom – Going through tricking withdrawal is tough. Ok here are my tips.
Interesting things interest women so you don’t have to do what other folks do. Me I like to eat at different restaurants aka Ecuadorian, Salvadorian, Thai, Korean, Carribbean, Brazilian and any other group. So those little places in those cultural neighborhoods cost as much as taking a woman out for fast food but she wouldn’t know. Go to a Noodle house as women like healthy light meals.
Groceries you have to buy in bulk. Find out what you can eat all of the time whether that be Hamburger Helper, Turkey Sandwiches or Fruit. Ask your friend to use their Sams Club card or buy your meats from Moo & Oink in bulk. Find where the bakery is in your area for bread as they’ll see you loaves for cheap if you buy it from them and it’s fresher. You buy those in bulk and you eat two to three of your meals from what you have in your refrigerator. If you don’t go out everyday you’ll end up with about 60 bucks a Friday to impress a woman.
Entertainment – Go to HAPPY HOUR! Meet all women at Happy Hour spots and remember the deals. Out here we have Taco Tuesdays at the Marina, Wings Wednesday, Cadillac Margaritas, Tapas and just about any other thing you can think of. So if you are really trying to save money you take her to happy hour. Buy Sangria Wine as it’s fruity tasting and most people don’t know the difference between good Sangria and bad Sangria. Since you are saving money 60 bucks a week once a month you can take her to Mortons or Ruth & Chris in the city and that’ll last you for 3 months.
Lastly – Take the woman you like to cooking classes with you. Women like that shit the majority of the time and you’ll be trying new dishes weekly and that’ll last you for that class. Go from Italian, to Turkish to Greek cooking classes, Baking classes and you’ll have free food and your lady will think you are interesting.
Ok that’s all the game I got so you just ruined my angles that I use on women. Now all my potential women will say what’s next dumbass Greek cooking classes LMBAO!
@AH – No software needed. Just pay off your real bills first. Sit on the money for as long as you can. Stop buying shit that makes you feel comfortable. That bag of Skittles homie is unnecessary. It’s not going to really work until you learn how to sacrifice. So sit on the extra money and you’ll end up with more after a while. Then you can move on changing your spending habits on food and the like. You got to purge and fast on the tricking ways to get them out of your system.
Appreciate all the responses. Especially since thanksgiving is this week. i plan on eating left overs for at least a week or two
Damn freeman you just dropped a gem on the meeting women part. I was meeting all mines either online, at clubs, or school. I didn’t even think about how crowded places like that get.
Freeman you already know because I hit you on the back channels for advice about how disciplines I am with my savings. I save a minimum of 25-50 percent of my income every time I get paid no matter if its my pay check, a hustle, school lumpsum, or tax return. The easiest way to do it is to pay yourself first as soon as you get the check, then work with the rest its like the easiest thing ever. I am so addicted to saving money that I get really upset with myself when life slaps me and shit happens stopping me from contributing more to my savings. Just yesterday I had an emergency and had to take out a bill but I’m not too upset because this is only the second time ever that I have taken money out this year every other transaction was a deposit.
A lot of people would be amazed how much money I have saved for someone so young and income so little. I just think constantly, “What if I had saved a minimum of 10 percent of everything I made since I started working every check and every school refund”. This motivates me to save even harder and stay focused. Saving consistently over time is a lifestyle.
Hey you’re young in this game so Happy Hour is usually something people go to along with the club. When I was younger I used to go to Happy Hour, then to a club then to a margarita bar on Friday night. It was my ritual with about 5 other brothers.
It will add up and it feels good to have it. I think some cats forget what it’s like to have options when other cats don’t have them. In this recession I still have money and that’s because I put it aside otherwise I wouldn’t be able to travel and enjoy my life. Emergencies will happen but even then it didn’t take you off your game. Wait until you buy your major move and believe me you’ll be happy your were disciplined. Most people are unwilling to sacrifice and as a result they sacrifice they stability and comfort. Pay now or pay later but you will pay.