1 00:00:00,080 --> 00:00:02,280 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,400 --> 00:00:25,000 Speaker 1: that today we're discussing different approaches to budgeting. Yeah, Joe, 3 00:00:25,079 --> 00:00:27,479 Speaker 1: what's so great about this episode is that we're not 4 00:00:27,480 --> 00:00:29,640 Speaker 1: only going to talk about why it's so important for 5 00:00:29,720 --> 00:00:32,280 Speaker 1: us to budget that the many benefits, and how we 6 00:00:32,280 --> 00:00:34,519 Speaker 1: can achieve the different goals that we've set for ourselves, 7 00:00:34,520 --> 00:00:37,120 Speaker 1: but we're gonna specifically talk about some of the different 8 00:00:37,280 --> 00:00:41,240 Speaker 1: methods of budgeting. Depending on your personality, right, just depending 9 00:00:41,280 --> 00:00:43,000 Speaker 1: on the type of person you are, there's gonna be 10 00:00:43,000 --> 00:00:45,559 Speaker 1: some what your anagram number is, that's actually what we 11 00:00:45,560 --> 00:00:49,839 Speaker 1: should have called it, like anagram budget. You're really into that, 12 00:00:49,880 --> 00:00:52,400 Speaker 1: aren't you know? I'm not my wife is I'm not? Well, 13 00:00:52,760 --> 00:00:55,680 Speaker 1: you keep calling me, uh four? Is that what you say? 14 00:00:55,720 --> 00:00:57,360 Speaker 1: I am? And you're you know you're a five? I 15 00:00:57,360 --> 00:00:59,840 Speaker 1: think five. But literally, I only know that because of 16 00:00:59,840 --> 00:01:02,640 Speaker 1: what other people say about types. I haven't read a 17 00:01:02,640 --> 00:01:05,120 Speaker 1: book listen. I listened to one podcast episode because my 18 00:01:05,120 --> 00:01:06,959 Speaker 1: wife asked me too, but like, you must listen to this. 19 00:01:07,280 --> 00:01:09,880 Speaker 1: But other than that, I don't know what they're about it. Yeah. 20 00:01:09,880 --> 00:01:12,240 Speaker 1: The fact is, if you have tried to budget before 21 00:01:12,840 --> 00:01:14,520 Speaker 1: and have failed, I think there's a good chance that 22 00:01:14,560 --> 00:01:16,720 Speaker 1: maybe you try to budget in a way that didn't 23 00:01:16,720 --> 00:01:19,560 Speaker 1: necessarily fit to how you naturally think about things. And 24 00:01:19,600 --> 00:01:21,759 Speaker 1: so that's what we're gonna talk about this episode. Yeah, 25 00:01:21,800 --> 00:01:25,120 Speaker 1: we personal finance is personal for a reason. We all 26 00:01:25,200 --> 00:01:27,520 Speaker 1: have like things that click in our brain make more 27 00:01:27,520 --> 00:01:29,280 Speaker 1: sense to us. And so if we can talk about 28 00:01:29,280 --> 00:01:32,000 Speaker 1: budgets and help people find a way of budgeting that 29 00:01:32,040 --> 00:01:34,440 Speaker 1: makes sense for kind of how they think about things, 30 00:01:34,760 --> 00:01:36,800 Speaker 1: then we want to do that because we want people 31 00:01:36,840 --> 00:01:39,360 Speaker 1: to master their money, no matter what their personality type is, 32 00:01:39,400 --> 00:01:42,160 Speaker 1: no matter what their tendencies are. But Matt, before we 33 00:01:42,200 --> 00:01:45,240 Speaker 1: get into that, I saw recently that our good friend 34 00:01:45,280 --> 00:01:47,960 Speaker 1: Warren Buffett are Yeah, are good, buddy? Pause, He's on 35 00:01:47,960 --> 00:01:49,880 Speaker 1: speed out. He's in my t mobile phave five. He's 36 00:01:49,880 --> 00:01:53,080 Speaker 1: one of my favorites. Yeah, he just ditched his flip phone. 37 00:01:53,280 --> 00:01:55,000 Speaker 1: He finally went to a smartphone for the first time 38 00:01:55,040 --> 00:01:57,120 Speaker 1: at the ripe old age of eighty nine. Nice. He 39 00:01:57,160 --> 00:01:58,680 Speaker 1: got with the times. Man, he's gotten too old to 40 00:01:58,680 --> 00:02:00,640 Speaker 1: teach the dog new tricks. You have the newest version 41 00:02:00,680 --> 00:02:03,160 Speaker 1: of the iPhone, I think, so where you go? Good 42 00:02:03,160 --> 00:02:05,160 Speaker 1: for him? But man, how cool is that this guy 43 00:02:05,200 --> 00:02:07,600 Speaker 1: who's one of the richest guys in the world, and 44 00:02:07,880 --> 00:02:09,919 Speaker 1: he says, you know what, I don't I don't need 45 00:02:09,960 --> 00:02:12,079 Speaker 1: the trappings of new technology. I don't need the latest 46 00:02:12,080 --> 00:02:14,200 Speaker 1: and greatest. And he's just kind of that. He's that 47 00:02:14,280 --> 00:02:15,720 Speaker 1: kind of guy. He's lived in the same house for 48 00:02:15,800 --> 00:02:19,160 Speaker 1: like fifty years or something, and he's been rolling with 49 00:02:19,200 --> 00:02:22,080 Speaker 1: his flipphone for such a He's a stubborn old man, 50 00:02:22,200 --> 00:02:25,000 Speaker 1: is what it sounds like, Like how much how much 51 00:02:25,000 --> 00:02:27,840 Speaker 1: of that is himning frugal versus you know, him not 52 00:02:27,880 --> 00:02:29,799 Speaker 1: wanting to learn the new technology. That's a good point. 53 00:02:29,840 --> 00:02:31,600 Speaker 1: But the fact is, though that he is older than 54 00:02:31,639 --> 00:02:33,239 Speaker 1: he was and he's just like, dang it, I guess 55 00:02:33,280 --> 00:02:35,200 Speaker 1: I'm gonna have to learn the new technology. I could 56 00:02:35,240 --> 00:02:38,000 Speaker 1: see him in his office playing candy Crush, like just 57 00:02:38,040 --> 00:02:40,440 Speaker 1: swiping all over the place. Right. It does make me 58 00:02:40,480 --> 00:02:43,399 Speaker 1: not feel so great about rocking my iPhone se which 59 00:02:43,440 --> 00:02:45,079 Speaker 1: I still am. By the way, I've got I got, 60 00:02:45,160 --> 00:02:47,720 Speaker 1: I got the iPhone sc and I kind of wear 61 00:02:47,760 --> 00:02:49,519 Speaker 1: it as like a badge of honor, the fact that 62 00:02:49,560 --> 00:02:51,880 Speaker 1: I still have this crazy old iPhone. But you know 63 00:02:51,880 --> 00:02:54,079 Speaker 1: what I mean, it still works. I still take really 64 00:02:54,080 --> 00:02:56,720 Speaker 1: good photos. With it, throw pictures up on Instagram, take 65 00:02:56,720 --> 00:02:59,520 Speaker 1: pictures of the kids. It still makes phone calls, maybe 66 00:02:59,560 --> 00:03:02,919 Speaker 1: more than maybe Warren would trade with you. He doesn't care, yeah, 67 00:03:02,960 --> 00:03:04,760 Speaker 1: because he's like, I don't really need it, Like I'll 68 00:03:04,800 --> 00:03:07,160 Speaker 1: take an older version. That's fine. But it's funny too 69 00:03:07,240 --> 00:03:11,080 Speaker 1: because what his company, Berkshire Hathaway, owns like over five 70 00:03:11,560 --> 00:03:15,000 Speaker 1: of Apple stock. So I'm sure he would have thought 71 00:03:15,000 --> 00:03:16,840 Speaker 1: that they would have like thrown in a free iPhone 72 00:03:16,919 --> 00:03:18,560 Speaker 1: right in there, right, and maybe maybe they did. I 73 00:03:18,600 --> 00:03:20,320 Speaker 1: don't know, but I mean, I don't know. I just 74 00:03:20,360 --> 00:03:22,359 Speaker 1: appreciate that. I think we can all learn a lesson 75 00:03:22,440 --> 00:03:25,400 Speaker 1: from someone who has, you know, more money than they 76 00:03:25,400 --> 00:03:27,000 Speaker 1: could ever spend more money than they know what to 77 00:03:27,040 --> 00:03:29,679 Speaker 1: do with, and yet they still live simply that That's 78 00:03:29,680 --> 00:03:32,280 Speaker 1: something that that I strive for, no matter where I'm 79 00:03:32,320 --> 00:03:34,640 Speaker 1: at in my earning cycle, no matter what my life 80 00:03:34,639 --> 00:03:38,920 Speaker 1: looks like, I want my life to have simplicity to it. 81 00:03:38,960 --> 00:03:40,680 Speaker 1: And so, yeah, I don't know, I respect him for that. 82 00:03:40,720 --> 00:03:42,560 Speaker 1: And by the way, one other thing that he said 83 00:03:42,640 --> 00:03:47,600 Speaker 1: recently at their the annual shareholders meeting of Berkshire Hathaway 84 00:03:48,000 --> 00:03:50,440 Speaker 1: is he said, you should think about buying stocks as 85 00:03:50,480 --> 00:03:55,680 Speaker 1: buying a business. And I think that specifically that the 86 00:03:55,760 --> 00:03:59,240 Speaker 1: change of phrase, using terminology in that way, it can 87 00:03:59,240 --> 00:04:02,680 Speaker 1: really frame things appropriately for us. And so I loved 88 00:04:02,720 --> 00:04:04,800 Speaker 1: what he said there. Instead of saying I'm buying stocks, 89 00:04:05,080 --> 00:04:07,160 Speaker 1: say I just you know, bought a portion of a 90 00:04:07,200 --> 00:04:09,080 Speaker 1: business today. I like that approach. I think it makes 91 00:04:09,080 --> 00:04:11,000 Speaker 1: a lot of sense. Yeah, I think that the temptation 92 00:04:11,040 --> 00:04:13,560 Speaker 1: with stocks is that you you buy and sell right like. 93 00:04:13,600 --> 00:04:15,880 Speaker 1: That's that's that's what he's fighting against our day trading 94 00:04:16,279 --> 00:04:18,440 Speaker 1: people who are getting in and out of the market quickly, 95 00:04:18,480 --> 00:04:21,120 Speaker 1: because that's when you lose when he's looking for value 96 00:04:21,160 --> 00:04:24,240 Speaker 1: inequity within the business and people aren't buying businesses and 97 00:04:24,279 --> 00:04:27,679 Speaker 1: selling businesses left and right, although folks do that with stocks, 98 00:04:27,720 --> 00:04:29,560 Speaker 1: And so I agree, I think that's a great way 99 00:04:29,560 --> 00:04:31,400 Speaker 1: to frame it, except that you're buying a business that 100 00:04:31,440 --> 00:04:33,719 Speaker 1: you don't have to tend to, which is like, sounds 101 00:04:33,720 --> 00:04:35,480 Speaker 1: like the best kind of business down in the easy 102 00:04:35,480 --> 00:04:37,720 Speaker 1: button on that business purchase. Yeah, all the way, man, 103 00:04:37,839 --> 00:04:39,839 Speaker 1: Let's go ahead and introduce our beer for this episode, 104 00:04:39,920 --> 00:04:42,839 Speaker 1: we are drinking another beer from Goose Island. This is 105 00:04:42,839 --> 00:04:46,080 Speaker 1: Bourbon County Wheat Wine Ale and again This one was 106 00:04:46,120 --> 00:04:49,400 Speaker 1: sent to us by listener friend of the show, Alex, 107 00:04:49,480 --> 00:04:51,560 Speaker 1: So thank you so much, Alex. Yeah, all right, Matt, 108 00:04:51,600 --> 00:04:54,760 Speaker 1: let's get onto the subject at hand. We're talking about 109 00:04:54,800 --> 00:04:57,720 Speaker 1: different approaches to budgeting, and we're not going to dissect 110 00:04:57,760 --> 00:04:59,839 Speaker 1: anyagram numbers here, but we are going to talk about, 111 00:05:00,120 --> 00:05:02,600 Speaker 1: you know, how people can figure out what budget is 112 00:05:02,600 --> 00:05:05,160 Speaker 1: going to work best for them, because in all likelihood 113 00:05:05,240 --> 00:05:07,640 Speaker 1: you need some sort of a budget. But budgets are 114 00:05:07,640 --> 00:05:10,599 Speaker 1: often viewed as like a four letter word. I envision 115 00:05:10,680 --> 00:05:13,240 Speaker 1: people screaming budget when they stub their toe, as opposed 116 00:05:13,279 --> 00:05:16,440 Speaker 1: to you know, another unsavory words would be a curse 117 00:05:16,480 --> 00:05:20,720 Speaker 1: word for you, right, budget, But only couples keep a 118 00:05:20,760 --> 00:05:23,200 Speaker 1: written budget of any kind, and I can't imagine that 119 00:05:23,240 --> 00:05:25,680 Speaker 1: the numbers are much higher for single folks either. So 120 00:05:25,760 --> 00:05:28,880 Speaker 1: let's say you do find the audacity to start creating 121 00:05:28,880 --> 00:05:30,800 Speaker 1: a budget. Well, there are so many different ways that 122 00:05:30,839 --> 00:05:33,760 Speaker 1: you begin, and that can be overwhelming for folks. Right there, 123 00:05:33,800 --> 00:05:36,120 Speaker 1: there are different apps that offer to help us in 124 00:05:36,480 --> 00:05:40,240 Speaker 1: various methods, and different money experts claiming that they're gonna 125 00:05:40,360 --> 00:05:43,000 Speaker 1: be able to help us actually stick to it this time. 126 00:05:43,400 --> 00:05:45,839 Speaker 1: So Matt, I think it's our goal on this episode right, 127 00:05:45,880 --> 00:05:48,120 Speaker 1: to make budgeting a little simpler and a little more 128 00:05:48,160 --> 00:05:52,720 Speaker 1: approachable for people and how they live life. In this episode, yes, 129 00:05:52,760 --> 00:05:55,760 Speaker 1: completely man, Most people like they buck at the idea 130 00:05:55,839 --> 00:05:58,680 Speaker 1: of starting or you know, keeping and maintaining a budget. 131 00:05:58,880 --> 00:06:00,880 Speaker 1: But we want to help you read lines that budgeting 132 00:06:00,880 --> 00:06:03,680 Speaker 1: can actually help you achieve your greater goals and provide 133 00:06:03,720 --> 00:06:05,480 Speaker 1: you with some piece of mind when it comes to 134 00:06:05,680 --> 00:06:08,680 Speaker 1: your money situation. Budgeting can help you live within your 135 00:06:08,720 --> 00:06:11,120 Speaker 1: means and achieve your goals that you've never been able 136 00:06:11,160 --> 00:06:13,560 Speaker 1: to and maybe it can help you avoid the fights 137 00:06:13,920 --> 00:06:16,640 Speaker 1: that plagued your relationship when it comes to money. And also, 138 00:06:16,720 --> 00:06:18,360 Speaker 1: you know, like we said, we're not only just going 139 00:06:18,400 --> 00:06:20,800 Speaker 1: to highlight the benefits of budgeting, but we're gonna show 140 00:06:20,800 --> 00:06:23,839 Speaker 1: how it can look different based on the different personality types, 141 00:06:23,839 --> 00:06:27,000 Speaker 1: based on your personal preferences. Yeah, and the biggest reason 142 00:06:27,080 --> 00:06:30,520 Speaker 1: for any of us to budget, the whole reason behind it, 143 00:06:30,640 --> 00:06:34,560 Speaker 1: is that budgets help us achieve our goals. Right, because 144 00:06:34,680 --> 00:06:37,440 Speaker 1: money is a limited resources for most of us except 145 00:06:37,480 --> 00:06:40,120 Speaker 1: for our friend Warren, but we all have to prioritize 146 00:06:40,120 --> 00:06:42,240 Speaker 1: and to put money towards the different goals that we 147 00:06:42,279 --> 00:06:44,520 Speaker 1: each have. So it's important for us to focus on 148 00:06:44,560 --> 00:06:47,400 Speaker 1: those greater wise behind our money, like why we do 149 00:06:47,440 --> 00:06:50,159 Speaker 1: things what we want for our life, and then letting 150 00:06:50,160 --> 00:06:52,640 Speaker 1: our money kind of fall in line with those greater 151 00:06:52,720 --> 00:06:56,600 Speaker 1: goals before we take a deep dive into the actual 152 00:06:56,640 --> 00:06:59,080 Speaker 1: specific numbers. So, Matt, let's go over a couple of 153 00:06:59,120 --> 00:07:03,160 Speaker 1: the common goals and reasons that people do find themselves 154 00:07:03,160 --> 00:07:04,839 Speaker 1: in need of a budget. And I think the first 155 00:07:04,880 --> 00:07:09,200 Speaker 1: one is kind of out of complete necessity, right, just 156 00:07:09,200 --> 00:07:11,760 Speaker 1: just to be able to make ends meet. Budgeting is 157 00:07:12,320 --> 00:07:15,120 Speaker 1: a crucial factor for a lot of people who have 158 00:07:15,240 --> 00:07:17,600 Speaker 1: to stretch the dollars that they make in a given 159 00:07:17,640 --> 00:07:19,880 Speaker 1: month to fit all the needs that they have in 160 00:07:19,880 --> 00:07:22,280 Speaker 1: that very same month. Right, And so even if you 161 00:07:22,280 --> 00:07:25,200 Speaker 1: have a steady W two job, if there's not enough 162 00:07:25,240 --> 00:07:27,600 Speaker 1: money to go around, a lot of folks will will 163 00:07:27,640 --> 00:07:31,080 Speaker 1: need to find discipline inside of a budget with their 164 00:07:31,120 --> 00:07:33,720 Speaker 1: money in order to just survive, just to be able 165 00:07:33,800 --> 00:07:36,640 Speaker 1: to put food on the table, pay rent, and make 166 00:07:36,680 --> 00:07:38,320 Speaker 1: sure they have gas to fill up their car to 167 00:07:38,360 --> 00:07:40,640 Speaker 1: get to and from work. So yeah, just to avoid 168 00:07:40,720 --> 00:07:42,880 Speaker 1: going into debt, to be able to make ends meet 169 00:07:42,920 --> 00:07:45,800 Speaker 1: every month, let alone to achieve you know, potential other goals. 170 00:07:45,960 --> 00:07:50,200 Speaker 1: Budgeting is just a necessity for tens of millions of Americans. 171 00:07:50,440 --> 00:07:52,040 Speaker 1: And so if we can get some of those people 172 00:07:52,040 --> 00:07:54,559 Speaker 1: on the budgeting track, I think we'd be we'd be happy, 173 00:07:54,680 --> 00:07:57,280 Speaker 1: right absolutely, man. And you know, in addition to folks 174 00:07:57,680 --> 00:07:59,880 Speaker 1: trying to get by, there's a lot of folks as 175 00:08:00,040 --> 00:08:02,520 Speaker 1: well who are in careers where they're not on a 176 00:08:02,560 --> 00:08:05,040 Speaker 1: fixed wage, right, Like, it's important to make a plan 177 00:08:05,360 --> 00:08:08,679 Speaker 1: in order to have enough money to invest, save, and spend. 178 00:08:09,240 --> 00:08:12,800 Speaker 1: There is incredible flexibility, right that I personally absolutely love 179 00:08:12,880 --> 00:08:15,440 Speaker 1: as a freelancer owning my own business, but the income 180 00:08:15,520 --> 00:08:17,600 Speaker 1: is flexible as well, and that can really be a 181 00:08:17,680 --> 00:08:20,120 Speaker 1: challenge if you don't have that steady paycheck coming in 182 00:08:20,200 --> 00:08:22,880 Speaker 1: every two weeks. Yeah, Matt. And another reason why budgets 183 00:08:22,920 --> 00:08:24,440 Speaker 1: are are such a good thing to have for so 184 00:08:24,480 --> 00:08:27,720 Speaker 1: many people is to save up for those bigger goals. 185 00:08:28,160 --> 00:08:30,800 Speaker 1: And I think so many times without a budget, we 186 00:08:30,840 --> 00:08:32,760 Speaker 1: see what we bring in every month, and we kind 187 00:08:32,760 --> 00:08:34,960 Speaker 1: of dole it out every month to the things that 188 00:08:35,120 --> 00:08:37,760 Speaker 1: seem like the most urgent. And if we do that, 189 00:08:37,800 --> 00:08:40,480 Speaker 1: we avoid being able to save and invest for longer 190 00:08:40,600 --> 00:08:42,800 Speaker 1: term goals that we have saving up for a trip, 191 00:08:42,880 --> 00:08:45,560 Speaker 1: or a new car, hopefully a new use car, but uh, 192 00:08:45,800 --> 00:08:48,480 Speaker 1: but down payment on a house. I mean, most folks 193 00:08:48,600 --> 00:08:52,000 Speaker 1: default to spending every single penny they make, and sometimes 194 00:08:52,000 --> 00:08:54,680 Speaker 1: more going into credit card debt. And while those immediate 195 00:08:54,720 --> 00:08:57,439 Speaker 1: needs and wants can be put on credit cards, this 196 00:08:57,520 --> 00:08:59,640 Speaker 1: is a dead end path, right because you can't put 197 00:08:59,679 --> 00:09:02,360 Speaker 1: your hirement on a credit card. And so for folks 198 00:09:02,480 --> 00:09:05,680 Speaker 1: that find that they constantly have to put their larger 199 00:09:05,760 --> 00:09:10,040 Speaker 1: goals on hold, well, a budget is a perfect solution 200 00:09:10,120 --> 00:09:12,120 Speaker 1: for someone like that. Yeah, totally, man. We know we 201 00:09:12,160 --> 00:09:14,280 Speaker 1: talked about how achieving goals is one of the biggest 202 00:09:14,280 --> 00:09:18,120 Speaker 1: reasons that we budget, but specifically achieving savings and financial 203 00:09:18,160 --> 00:09:20,440 Speaker 1: goals is is such a huge part of that. Personally, 204 00:09:20,480 --> 00:09:22,280 Speaker 1: for me, one of the reasons I like the budget 205 00:09:22,480 --> 00:09:25,760 Speaker 1: is just having an understanding and having knowledge about what 206 00:09:25,800 --> 00:09:27,880 Speaker 1: I'm spending my money on. Right, Like, some folks are 207 00:09:27,880 --> 00:09:29,720 Speaker 1: a little nerdier like me, and they'd like to know 208 00:09:29,760 --> 00:09:31,600 Speaker 1: all the details, and so I know, for me, when 209 00:09:31,640 --> 00:09:33,840 Speaker 1: I'm able to understand and wrap my brain around the 210 00:09:33,840 --> 00:09:37,560 Speaker 1: big picture, I'm able to stick with whatever plan I've 211 00:09:37,800 --> 00:09:40,280 Speaker 1: you know, decided I'm gonna do because I understand the 212 00:09:40,280 --> 00:09:42,959 Speaker 1: why behind that, right, And so for me when I budget, 213 00:09:43,160 --> 00:09:45,040 Speaker 1: if I know why it is and how it is 214 00:09:45,120 --> 00:09:46,880 Speaker 1: i'm doing this and I can I'm able to kind 215 00:09:46,880 --> 00:09:48,280 Speaker 1: of see it from the start all the way to 216 00:09:48,320 --> 00:09:50,439 Speaker 1: the finish, I have a much better chance of completing 217 00:09:50,480 --> 00:09:52,080 Speaker 1: that and seeing it to the end. I remember being 218 00:09:52,080 --> 00:09:54,520 Speaker 1: a kid and I would ask my parents why a lot, 219 00:09:55,640 --> 00:09:58,080 Speaker 1: as most kids do. I could especially see you being 220 00:09:58,160 --> 00:10:02,080 Speaker 1: the white kid why, And yes that I was just 221 00:10:02,280 --> 00:10:05,040 Speaker 1: much more likely to actually obey or follow through when 222 00:10:05,080 --> 00:10:07,040 Speaker 1: something when I knew like why I was doing it. 223 00:10:07,240 --> 00:10:09,200 Speaker 1: And I think all of us have a little bit 224 00:10:09,240 --> 00:10:11,680 Speaker 1: of that to ourselves, right, and so much more than others. 225 00:10:11,679 --> 00:10:14,640 Speaker 1: But the more we can understand kind of how things work, 226 00:10:14,960 --> 00:10:17,360 Speaker 1: why we're doing it, what direction we're going in, the 227 00:10:17,400 --> 00:10:19,760 Speaker 1: easier it is to actually follow through on that thing. 228 00:10:19,800 --> 00:10:22,360 Speaker 1: And so, yeah, sorry mom and dad that I was 229 00:10:22,400 --> 00:10:25,360 Speaker 1: that kid. It's like, well, why, it's because I said so. 230 00:10:25,960 --> 00:10:28,000 Speaker 1: Maybe later I'll explain it to you. Definitely douse that 231 00:10:28,080 --> 00:10:30,360 Speaker 1: at some point in my parenting already. Uh well, And 232 00:10:30,400 --> 00:10:33,240 Speaker 1: another great reason for folks to start budgeting as well 233 00:10:33,280 --> 00:10:35,880 Speaker 1: as to avoid money fights, right, if you have a 234 00:10:35,880 --> 00:10:39,520 Speaker 1: significant other, budgeting can get you both on the same page. 235 00:10:39,679 --> 00:10:42,520 Speaker 1: It's easy to talk in generalities, but money is a 236 00:10:42,600 --> 00:10:45,520 Speaker 1: very specific and concrete thing, and so there's no better 237 00:10:45,520 --> 00:10:48,240 Speaker 1: way to talk about the specifics of money than with 238 00:10:48,280 --> 00:10:51,439 Speaker 1: a budget. Like that's speaking money is a budget, right, 239 00:10:51,440 --> 00:10:52,920 Speaker 1: Like you want to learn how to speak money. It's 240 00:10:52,920 --> 00:10:55,560 Speaker 1: a budget, Like that's the textbook easiest way to communicate 241 00:10:55,559 --> 00:10:57,920 Speaker 1: about it. Yeah, but just can really improve how you 242 00:10:57,960 --> 00:11:01,040 Speaker 1: communicate about your money with a signal again other, Yeah, 243 00:11:01,080 --> 00:11:04,400 Speaker 1: we've received a listener email recently, so I'm talking about 244 00:11:04,400 --> 00:11:07,599 Speaker 1: how budgeting is actually really helped change their life and 245 00:11:07,640 --> 00:11:10,319 Speaker 1: their their dynamic as a couple, and that the budget 246 00:11:10,320 --> 00:11:12,439 Speaker 1: has essentially been that place for them to be able 247 00:11:12,440 --> 00:11:15,320 Speaker 1: to communicate well about money, and money is kind of 248 00:11:15,360 --> 00:11:17,800 Speaker 1: the the diving off point to be able to talk 249 00:11:17,840 --> 00:11:20,240 Speaker 1: about bigger goals, the things that you guys want to 250 00:11:20,280 --> 00:11:23,440 Speaker 1: achieve together. And so, yeah, I just enjoy getting emails 251 00:11:23,440 --> 00:11:26,400 Speaker 1: like that because it's really fun to see that money 252 00:11:26,400 --> 00:11:30,160 Speaker 1: has this much greater impact beyond just the excess and 253 00:11:30,200 --> 00:11:33,319 Speaker 1: the ohs, beyond the dollar signs and the decimal points. 254 00:11:33,360 --> 00:11:36,240 Speaker 1: That being able to as a couple communicate well about 255 00:11:36,240 --> 00:11:40,320 Speaker 1: money has led to just increased clarity in their discussions 256 00:11:40,360 --> 00:11:43,640 Speaker 1: on a lot of topics in their marriage. That's awesome, man, right, 257 00:11:43,679 --> 00:11:45,800 Speaker 1: I know, yeah, so cool. And I always enjoy seeing 258 00:11:45,840 --> 00:11:48,760 Speaker 1: how talking about money well and a budget being that 259 00:11:48,920 --> 00:11:51,080 Speaker 1: exact thing helping you to be able to talk about 260 00:11:51,080 --> 00:11:55,000 Speaker 1: money well actually leads to good conversations for couples in 261 00:11:55,040 --> 00:11:57,240 Speaker 1: all these other areas of life. For sure, it's really 262 00:11:57,320 --> 00:11:59,800 Speaker 1: encouraging to see budgets being talks about as something that 263 00:12:00,040 --> 00:12:02,880 Speaker 1: rings a couple together, not as something that like one 264 00:12:02,960 --> 00:12:05,959 Speaker 1: is hitting the other person overhead with, right exactly. And 265 00:12:06,040 --> 00:12:08,040 Speaker 1: I think the reason that a budget can be especially 266 00:12:08,080 --> 00:12:10,400 Speaker 1: helpful for couples as well is because essentially, like all 267 00:12:10,400 --> 00:12:12,439 Speaker 1: it is is a plan for your money. Like it's 268 00:12:12,440 --> 00:12:15,080 Speaker 1: a plan that you both agree to or that you 269 00:12:15,240 --> 00:12:17,880 Speaker 1: just agree to yourself if you're single, but it's something 270 00:12:17,880 --> 00:12:20,520 Speaker 1: that you've created to help you achieve your goals, right, 271 00:12:20,800 --> 00:12:24,280 Speaker 1: whatever those goals might be. It's just an intentional approach 272 00:12:24,360 --> 00:12:26,280 Speaker 1: to what you're going to do with your money so 273 00:12:26,320 --> 00:12:28,800 Speaker 1: that you don't get to the end of your working 274 00:12:28,840 --> 00:12:31,880 Speaker 1: career of your lifetime wondering where all of your money 275 00:12:31,880 --> 00:12:34,400 Speaker 1: has gone. And that's easy to do. I mean, I 276 00:12:34,440 --> 00:12:36,520 Speaker 1: know that we feel that which is like the hours 277 00:12:36,520 --> 00:12:38,920 Speaker 1: in our day sometimes that we we waste them more 278 00:12:38,920 --> 00:12:41,040 Speaker 1: like what did I even do today? I think I 279 00:12:41,080 --> 00:12:43,400 Speaker 1: especially remember some of those days when I was younger. Well, 280 00:12:43,480 --> 00:12:44,959 Speaker 1: now I've got kids pulling on me, a lot of 281 00:12:45,000 --> 00:12:47,280 Speaker 1: stuff to do, but I totally remember the days like 282 00:12:47,320 --> 00:12:50,320 Speaker 1: that in my early twenties where I don't know what 283 00:12:50,320 --> 00:12:52,640 Speaker 1: I got accomplished that day, but you're like, it's six thirty. 284 00:12:52,640 --> 00:12:55,920 Speaker 1: I guess it's time to eat. Yeah, and and so yeah. 285 00:12:55,960 --> 00:12:57,719 Speaker 1: I think the same thing can definitely be true of 286 00:12:57,760 --> 00:13:00,120 Speaker 1: our money, that if we're not thoughtful about it, if 287 00:13:00,120 --> 00:13:02,559 Speaker 1: we don't have kind of a plan, we can waste 288 00:13:02,640 --> 00:13:04,680 Speaker 1: that money and miss out on the bigger goals that 289 00:13:04,720 --> 00:13:06,880 Speaker 1: we that we have that are buried underneath that we 290 00:13:06,920 --> 00:13:09,400 Speaker 1: just haven't even gotten around to finding out what they are. Sometimes, 291 00:13:09,640 --> 00:13:12,040 Speaker 1: And Matt, that plan is the budget. And we're gonna 292 00:13:12,080 --> 00:13:14,359 Speaker 1: talk more about that and get into kind of specific 293 00:13:14,360 --> 00:13:17,600 Speaker 1: budgeting styles for different personality types right after the break. 294 00:13:26,800 --> 00:13:28,199 Speaker 1: All right, we're back in the break, Matt. We're talking 295 00:13:28,240 --> 00:13:32,559 Speaker 1: about budgeting and different approaches to budgeting. One approach would 296 00:13:32,559 --> 00:13:34,360 Speaker 1: be to not have a budget at all. That doesn't 297 00:13:34,360 --> 00:13:37,200 Speaker 1: really sound like a method or an approach. It is 298 00:13:37,200 --> 00:13:40,280 Speaker 1: an approach some people take, and I guess it begs 299 00:13:40,280 --> 00:13:43,440 Speaker 1: the question, though, are there people who don't need to budget? 300 00:13:44,000 --> 00:13:45,840 Speaker 1: And so I think you and I actually kind of 301 00:13:45,840 --> 00:13:48,640 Speaker 1: disagree on this point, so let's hash it out. I 302 00:13:48,679 --> 00:13:52,280 Speaker 1: would say that, yes, there are some folks, a small 303 00:13:52,360 --> 00:13:55,880 Speaker 1: sliver of folks that can get away with not having 304 00:13:55,880 --> 00:13:58,480 Speaker 1: a budget. I think budgets are best at helping us 305 00:13:58,559 --> 00:14:01,320 Speaker 1: put our money towards the areas that we value in life, 306 00:14:01,559 --> 00:14:03,600 Speaker 1: and they can be a pivotal part of of increasing 307 00:14:03,679 --> 00:14:06,160 Speaker 1: what we save and invest. But if you are kind 308 00:14:06,160 --> 00:14:10,959 Speaker 1: of this natural saver, someone that generally likes to max 309 00:14:10,960 --> 00:14:13,240 Speaker 1: out there for oh one k, who's always looking to 310 00:14:13,280 --> 00:14:16,080 Speaker 1: put more money aside, you might not need a budget. 311 00:14:16,480 --> 00:14:18,080 Speaker 1: And and Matt, that was that was kind of me 312 00:14:18,240 --> 00:14:21,280 Speaker 1: before I got married, was I I didn't feel like 313 00:14:21,280 --> 00:14:22,760 Speaker 1: I needed a budget because I felt like I was 314 00:14:22,840 --> 00:14:25,720 Speaker 1: naturally just looking for ways to save more of my 315 00:14:25,800 --> 00:14:28,200 Speaker 1: money and invest for the future, and so taking the 316 00:14:28,280 --> 00:14:30,480 Speaker 1: time to create and stick to a budget just didn't 317 00:14:30,480 --> 00:14:33,680 Speaker 1: feel necessary for me. And again, I don't think that 318 00:14:33,720 --> 00:14:38,400 Speaker 1: this is something that is applicable to most folks out there. 319 00:14:38,520 --> 00:14:40,400 Speaker 1: I think most folks need a budget, Like, they need 320 00:14:40,400 --> 00:14:42,160 Speaker 1: that to build communicate with their spouse, and they need 321 00:14:42,200 --> 00:14:44,280 Speaker 1: that to allocate their money in a way that aligns 322 00:14:44,280 --> 00:14:46,680 Speaker 1: with their values. But I think for a few people 323 00:14:46,720 --> 00:14:51,320 Speaker 1: at least, not budgeting can be a method that makes sense. 324 00:14:51,360 --> 00:14:52,960 Speaker 1: All right, Matt, I see you roll in your eyes, 325 00:14:53,000 --> 00:14:54,960 Speaker 1: So tell me why I'm wrong. Well, here's the thing. 326 00:14:55,200 --> 00:14:57,640 Speaker 1: I don't think it necessarily has to do with, you know, 327 00:14:57,680 --> 00:15:00,880 Speaker 1: whether or not you are saving or seeing enough money, 328 00:15:01,080 --> 00:15:03,440 Speaker 1: right Like, So I would argue that everyone needs to 329 00:15:03,480 --> 00:15:06,920 Speaker 1: have a budget. Most Americans have a really tough time 330 00:15:07,080 --> 00:15:09,880 Speaker 1: saving and putting enough for their income towards retirement. Like, 331 00:15:09,960 --> 00:15:12,280 Speaker 1: that's one of the biggest reasons to budget, right, That's 332 00:15:12,320 --> 00:15:14,280 Speaker 1: what we've been talking about. But let's say there is 333 00:15:14,320 --> 00:15:16,720 Speaker 1: someone who is one of the rare folks who is 334 00:15:16,760 --> 00:15:20,000 Speaker 1: frugal and saves a ton of money. Right, retirement is 335 00:15:20,040 --> 00:15:23,120 Speaker 1: getting maxed out. Extra money is going towards other investments. 336 00:15:23,200 --> 00:15:26,080 Speaker 1: Maybe money is going towards smart real estate deals. And 337 00:15:26,120 --> 00:15:28,000 Speaker 1: so in this example, I would argue that the budget 338 00:15:28,040 --> 00:15:30,320 Speaker 1: needs to be there not to get that individual to 339 00:15:30,480 --> 00:15:33,560 Speaker 1: save more, but to spend more of their money, right, Like, 340 00:15:33,640 --> 00:15:36,080 Speaker 1: chances are if that you were to sit that person 341 00:15:36,120 --> 00:15:38,520 Speaker 1: down and ask them, like, what are the important things 342 00:15:38,520 --> 00:15:40,800 Speaker 1: in your life that you value? Like they'll name a 343 00:15:40,800 --> 00:15:43,200 Speaker 1: few things, and then I would ask them if they're 344 00:15:43,200 --> 00:15:46,120 Speaker 1: spending their money in a way that reflects those values, right. 345 00:15:46,280 --> 00:15:48,240 Speaker 1: It's like, so, for example, a lot of folks will 346 00:15:48,240 --> 00:15:50,960 Speaker 1: say that they value friendship or relationships. I think that's 347 00:15:50,960 --> 00:15:53,320 Speaker 1: one of the ways that folks who are super savers 348 00:15:53,760 --> 00:15:55,560 Speaker 1: and who are really unto the money might get carried 349 00:15:55,560 --> 00:15:57,640 Speaker 1: away and they're like, oh, you know, like I don't 350 00:15:57,680 --> 00:15:59,240 Speaker 1: want to go out for drinks because I'm trying to 351 00:15:59,280 --> 00:16:01,120 Speaker 1: I'm trying to say, Or they're like, I don't want 352 00:16:01,120 --> 00:16:03,480 Speaker 1: to go on that vacation because that's gonna that's gonna 353 00:16:03,480 --> 00:16:06,240 Speaker 1: put my five date, my financial independence date back, you know, 354 00:16:06,240 --> 00:16:08,160 Speaker 1: it's gonna push it down the road another year, like 355 00:16:08,240 --> 00:16:10,200 Speaker 1: that kind of thing. But if you ask them like, 356 00:16:10,320 --> 00:16:12,600 Speaker 1: is this something that's valuable to you? Like is this important? 357 00:16:12,600 --> 00:16:14,520 Speaker 1: They would say yes, and and so it would It 358 00:16:14,560 --> 00:16:17,520 Speaker 1: takes sometimes, I think a budget to highlight that, Like 359 00:16:17,600 --> 00:16:19,560 Speaker 1: there are lasting memories that you might be missing out 360 00:16:19,600 --> 00:16:22,400 Speaker 1: on were you to to skimp in those situations. See, 361 00:16:22,480 --> 00:16:23,960 Speaker 1: that's why I like you. I like being your friend 362 00:16:24,000 --> 00:16:26,040 Speaker 1: because I feel like you bring a perspective sometimes that 363 00:16:26,080 --> 00:16:27,600 Speaker 1: I don't have. I'm trying to get you to spend 364 00:16:27,640 --> 00:16:30,840 Speaker 1: your money, well, not you specifically. This is a hypothetical, right, 365 00:16:30,920 --> 00:16:32,680 Speaker 1: but I mean that that honestly, that kind of like 366 00:16:32,920 --> 00:16:35,000 Speaker 1: was me for a while back in the day, and 367 00:16:35,040 --> 00:16:37,000 Speaker 1: I feel like having a budget, talking about it with 368 00:16:37,000 --> 00:16:39,560 Speaker 1: Emily and are us having shared goals together, it's been 369 00:16:39,600 --> 00:16:42,360 Speaker 1: really really helpful. And now it would be hard for me, 370 00:16:42,960 --> 00:16:45,880 Speaker 1: you know, to to live life with that one because 371 00:16:46,000 --> 00:16:48,640 Speaker 1: I do feel like it informs kind of the values 372 00:16:48,680 --> 00:16:50,920 Speaker 1: that I have and it does force me in a 373 00:16:50,920 --> 00:16:52,680 Speaker 1: good way to spend money on the things that do 374 00:16:52,760 --> 00:16:55,040 Speaker 1: matter to me. And that is something that I like 375 00:16:55,120 --> 00:16:56,840 Speaker 1: you and I we we fight for for people. We 376 00:16:56,880 --> 00:16:59,080 Speaker 1: want people to experience that where they are able to 377 00:16:59,120 --> 00:17:01,440 Speaker 1: save and invest well for the future while well also 378 00:17:01,480 --> 00:17:03,480 Speaker 1: spending money today on things that they care about. Right, 379 00:17:03,520 --> 00:17:05,520 Speaker 1: I mean, that's that's the magical place. That's a good 380 00:17:05,520 --> 00:17:07,560 Speaker 1: place for people, and that's what a budget can, I agree, 381 00:17:07,600 --> 00:17:09,520 Speaker 1: really help people do. Yeah. I feel like so much 382 00:17:09,560 --> 00:17:11,199 Speaker 1: of of what I guess I'm trying to communicate here 383 00:17:11,280 --> 00:17:14,800 Speaker 1: is that, uh, folks see budgets as being something that 384 00:17:14,800 --> 00:17:17,240 Speaker 1: that are restricting, right, but in reality that I'm trying 385 00:17:17,240 --> 00:17:18,919 Speaker 1: to like flip that around and trying and turn it 386 00:17:18,960 --> 00:17:21,480 Speaker 1: around for folks and say, like, no, there's freedom in 387 00:17:21,520 --> 00:17:23,840 Speaker 1: a budget. And I've seen this specifically with my wife 388 00:17:23,920 --> 00:17:26,720 Speaker 1: Kate as well, Like she feels and she's always felt 389 00:17:26,760 --> 00:17:28,720 Speaker 1: this way, but she'll feel a little guilty for spending 390 00:17:28,760 --> 00:17:30,399 Speaker 1: money because she knows that, like, oh, I know I 391 00:17:30,440 --> 00:17:32,359 Speaker 1: could save this and that would be a smarter thing 392 00:17:32,400 --> 00:17:35,040 Speaker 1: to do. But if we've identified that, like, no, this 393 00:17:35,119 --> 00:17:37,240 Speaker 1: is important for us to do, this is something that 394 00:17:37,280 --> 00:17:39,480 Speaker 1: we want to put our money towards, well, then if 395 00:17:39,480 --> 00:17:41,200 Speaker 1: you look at the budget and there's still money left, 396 00:17:41,359 --> 00:17:44,560 Speaker 1: there should be complete freedom to spend that money and 397 00:17:44,600 --> 00:17:47,199 Speaker 1: not feel guilty about it at all. Yeah. No, I 398 00:17:47,240 --> 00:17:49,080 Speaker 1: love that, all right. So let's talk about the other 399 00:17:49,160 --> 00:17:52,720 Speaker 1: methods besides the non method of not budgeting that we've 400 00:17:52,800 --> 00:17:54,760 Speaker 1: kind of thought out here and and and we What 401 00:17:54,800 --> 00:17:57,000 Speaker 1: we're trying to do in these is trying to ascribe 402 00:17:57,040 --> 00:18:00,560 Speaker 1: kind of a personality style and kind of what budget 403 00:18:00,600 --> 00:18:03,200 Speaker 1: might be best for you. So let's go through them. 404 00:18:03,240 --> 00:18:04,600 Speaker 1: The first one we want to cover is kind of 405 00:18:04,640 --> 00:18:06,719 Speaker 1: like the newbie budget, or if you are kind of 406 00:18:06,720 --> 00:18:08,720 Speaker 1: new to the game, you've never really created one before, 407 00:18:09,240 --> 00:18:11,159 Speaker 1: and you have no idea where to start. Well, then 408 00:18:11,160 --> 00:18:15,120 Speaker 1: we would suggest considering a fifty budget that's probably best 409 00:18:15,119 --> 00:18:17,960 Speaker 1: for you. That means that of your budget is for 410 00:18:18,000 --> 00:18:21,080 Speaker 1: your needs, is for your wants, and twenty of your 411 00:18:21,080 --> 00:18:23,760 Speaker 1: budget should be dedicated towards savings. This is kind of 412 00:18:23,760 --> 00:18:26,360 Speaker 1: like a less rigid approach and can kind of act 413 00:18:26,440 --> 00:18:28,560 Speaker 1: as like a guiding light if you're looking to keep 414 00:18:28,600 --> 00:18:31,320 Speaker 1: things simple, because we can make budgets as simple or 415 00:18:31,359 --> 00:18:34,160 Speaker 1: complex as we like, and if you're new to the game, 416 00:18:34,520 --> 00:18:38,199 Speaker 1: keeping it simple with UH with essentially three main categories, 417 00:18:38,440 --> 00:18:40,240 Speaker 1: that's just kind of a good way to ease yourself 418 00:18:40,280 --> 00:18:43,040 Speaker 1: in to the process of budgeting altogether. And at the 419 00:18:43,040 --> 00:18:45,920 Speaker 1: same time, apps like Mint and Wine app can help 420 00:18:45,960 --> 00:18:48,360 Speaker 1: you keep track of your spending to make sure that 421 00:18:48,440 --> 00:18:53,040 Speaker 1: you're sticking to the budget that you've set up for yourself. Yeah. 422 00:18:53,080 --> 00:18:55,160 Speaker 1: What's great about those apps specifically too, is like there's 423 00:18:55,160 --> 00:18:57,240 Speaker 1: a good amount of automation built in, but then as 424 00:18:57,280 --> 00:18:58,920 Speaker 1: you kind of progressed down the path, you can get 425 00:18:58,960 --> 00:19:01,640 Speaker 1: a little more advanced, kind of complicated with it. As 426 00:19:01,760 --> 00:19:04,119 Speaker 1: needs arise, you can personalize it and so you know, 427 00:19:04,280 --> 00:19:06,000 Speaker 1: like you said, so that's maybe for someone who who 428 00:19:06,040 --> 00:19:08,480 Speaker 1: doesn't know where to start. Well, maybe like you're someone 429 00:19:08,560 --> 00:19:10,680 Speaker 1: who just really doesn't like the numbers, right, like maybe 430 00:19:10,680 --> 00:19:13,440 Speaker 1: you're more of a free spirit. You can simplify things 431 00:19:13,480 --> 00:19:17,280 Speaker 1: even more by going with the eight twenty budget, and 432 00:19:17,320 --> 00:19:20,480 Speaker 1: that's where you're setting aside of your income towards retirement 433 00:19:20,800 --> 00:19:23,159 Speaker 1: and then everything else, like, well, it doesn't matter what 434 00:19:23,200 --> 00:19:25,560 Speaker 1: you spend your money on, like it is completely up 435 00:19:25,600 --> 00:19:30,160 Speaker 1: to you. You've already prioritized what's arguably the largest financial 436 00:19:30,200 --> 00:19:33,400 Speaker 1: goal of maybe being financially independent at some point, but otherwise, 437 00:19:33,480 --> 00:19:35,720 Speaker 1: like you get to do what you want with your money. 438 00:19:36,040 --> 00:19:37,760 Speaker 1: And so an easy way to implement this is that 439 00:19:37,800 --> 00:19:39,760 Speaker 1: if you have a job as a four o one K, well, 440 00:19:39,840 --> 00:19:42,199 Speaker 1: you can increase your contributions towards your four oh one 441 00:19:42,280 --> 00:19:45,119 Speaker 1: K to that percentage you know, And we say, but 442 00:19:45,160 --> 00:19:47,280 Speaker 1: it just depends on where you are, Like maybe for 443 00:19:47,320 --> 00:19:49,360 Speaker 1: you that's just ten percent for now, uh, and then 444 00:19:49,400 --> 00:19:51,399 Speaker 1: slowly over time you can crank that up to fifteen. 445 00:19:52,760 --> 00:19:54,440 Speaker 1: That's up to you. But what we're trying to point 446 00:19:54,440 --> 00:19:57,600 Speaker 1: out though, is that we want you to prioritize saving 447 00:19:57,680 --> 00:20:00,000 Speaker 1: for the future without too much complexity. We want to 448 00:20:00,000 --> 00:20:01,520 Speaker 1: make sure that you get that one thing right and 449 00:20:01,520 --> 00:20:03,480 Speaker 1: then everything else. It doesn't really matter so much as 450 00:20:03,480 --> 00:20:05,400 Speaker 1: long as you're surviving. You just want to make sure 451 00:20:05,440 --> 00:20:07,760 Speaker 1: that you're taking care of those long term goals. It's 452 00:20:07,760 --> 00:20:10,520 Speaker 1: also worth mentioning Joel that, to you know, operate with 453 00:20:10,560 --> 00:20:14,199 Speaker 1: the uh the free spirit budget, you're operating from the 454 00:20:14,240 --> 00:20:17,879 Speaker 1: standpoint of having enough money. Not everyone has enough, and 455 00:20:17,920 --> 00:20:20,040 Speaker 1: so if this is you like, realize that this is 456 00:20:20,080 --> 00:20:22,080 Speaker 1: a bit of a luxury to say I'm just gonna 457 00:20:22,119 --> 00:20:24,240 Speaker 1: worry about retirement and then I'm going to spend my 458 00:20:24,280 --> 00:20:27,560 Speaker 1: money on whatever else I want. That's not the case 459 00:20:27,600 --> 00:20:30,359 Speaker 1: for most folks. Yes, the pre spirit budget a ka 460 00:20:30,520 --> 00:20:33,840 Speaker 1: that treat yourself budget right or you're still at least 461 00:20:33,880 --> 00:20:37,439 Speaker 1: at minimum prioritizing that timber cent contribution. Yeah, like it 462 00:20:37,480 --> 00:20:39,879 Speaker 1: does your future self because you need that exactly it is. 463 00:20:39,920 --> 00:20:41,439 Speaker 1: I guess what we're pointing on here is that it 464 00:20:41,440 --> 00:20:44,200 Speaker 1: doesn't have to be more complicated than that, at least 465 00:20:44,200 --> 00:20:46,600 Speaker 1: for now. I think over time, as your budget becomes 466 00:20:46,600 --> 00:20:49,440 Speaker 1: slightly more sophisticated, that can be a healthy thing. But 467 00:20:49,480 --> 00:20:51,680 Speaker 1: that this is a great first step. All right, let's 468 00:20:51,680 --> 00:20:54,640 Speaker 1: talk about Matt. Probably the category you fall into, just 469 00:20:54,640 --> 00:20:58,239 Speaker 1: just to guess, is the type a budget. And we 470 00:20:58,280 --> 00:21:00,439 Speaker 1: think that a zero based budget makes a lot of 471 00:21:00,440 --> 00:21:03,520 Speaker 1: sense for the person who wants everything lined up down 472 00:21:03,520 --> 00:21:05,840 Speaker 1: to the penny. Right. So if you're highly organized and 473 00:21:05,880 --> 00:21:08,720 Speaker 1: great with spreadsheets, you can use those strengths to really 474 00:21:08,760 --> 00:21:11,320 Speaker 1: make your money work for you by giving every single 475 00:21:11,359 --> 00:21:14,359 Speaker 1: dollar a name. Yeah, man, this is me all the way. 476 00:21:14,480 --> 00:21:18,080 Speaker 1: I am all about this sort of highly mechanized process 477 00:21:18,240 --> 00:21:21,280 Speaker 1: of of handling my money. Uh. And the biggest reason 478 00:21:21,320 --> 00:21:24,160 Speaker 1: for that is because I'm able to remove emotions from 479 00:21:24,160 --> 00:21:27,360 Speaker 1: the equation. Right, Like when you have this this process 480 00:21:27,400 --> 00:21:29,520 Speaker 1: basically in line where you don't really have to think 481 00:21:29,520 --> 00:21:31,879 Speaker 1: about it, you follow the rules that you've you know, 482 00:21:31,920 --> 00:21:35,840 Speaker 1: predecided ahead of time. Uh, it removes human error from 483 00:21:35,920 --> 00:21:38,680 Speaker 1: the the equation. And that's what I love about having 484 00:21:38,680 --> 00:21:41,119 Speaker 1: a budget this way. That's when you become like Ivan 485 00:21:41,160 --> 00:21:44,040 Speaker 1: Drago and Rocky for You're you're basically like a robotic 486 00:21:44,160 --> 00:21:47,000 Speaker 1: version of a human. Yeah. I love that, like punching machine. 487 00:21:47,560 --> 00:21:51,280 Speaker 1: You don't need emotions, right exactly, just train hard every day, 488 00:21:51,320 --> 00:21:53,600 Speaker 1: eight hours a day. No, I mean, it's it's true. 489 00:21:53,600 --> 00:21:56,000 Speaker 1: But for people that have that kind of personality that 490 00:21:56,560 --> 00:22:00,159 Speaker 1: really that need the specifics to be on point in 491 00:22:00,240 --> 00:22:02,280 Speaker 1: order to feel comfortable about things. I think a zero 492 00:22:02,320 --> 00:22:04,840 Speaker 1: based budget makes a lot of sense because you're you're 493 00:22:04,880 --> 00:22:08,359 Speaker 1: able to to usher everything that comes in to a 494 00:22:08,359 --> 00:22:10,600 Speaker 1: specific category, and I think that brings a lot of calm, 495 00:22:10,600 --> 00:22:13,280 Speaker 1: a lot of zen into people's lives. Who who's speaking 496 00:22:13,320 --> 00:22:16,720 Speaker 1: my language? Yeah, you thrive basically on the ability to 497 00:22:16,800 --> 00:22:19,439 Speaker 1: know exactly what's coming in, exactly what's going out and 498 00:22:19,480 --> 00:22:22,000 Speaker 1: where that's going. And you know, if if you were 499 00:22:22,119 --> 00:22:24,000 Speaker 1: trying to get a type a person to do a 500 00:22:24,040 --> 00:22:26,359 Speaker 1: free spirit kind of budget, that would make them to 501 00:22:26,400 --> 00:22:29,479 Speaker 1: go bonkers vice versa tough time with that, right, And 502 00:22:29,520 --> 00:22:32,200 Speaker 1: I think that that's why these different kind of personality 503 00:22:32,200 --> 00:22:35,520 Speaker 1: types and budgeting accordingly is so helpful. Yeah, everything is 504 00:22:35,560 --> 00:22:38,040 Speaker 1: in its right place, man. And with a zero based budget, 505 00:22:38,119 --> 00:22:40,160 Speaker 1: you have the added benefit of being able to see 506 00:22:40,200 --> 00:22:42,920 Speaker 1: exactly what you're spending your money on, and you can 507 00:22:42,920 --> 00:22:46,400 Speaker 1: see trends over time as well. Recently, we look back 508 00:22:46,440 --> 00:22:50,439 Speaker 1: at our spending and because I've been known this for 509 00:22:50,520 --> 00:22:53,280 Speaker 1: a decade now, like we were literally able to compare 510 00:22:53,320 --> 00:22:55,719 Speaker 1: what we spent at the grocery store to the past, 511 00:22:56,160 --> 00:22:58,879 Speaker 1: you know, thirteen years, which is but I mean, I 512 00:22:58,880 --> 00:23:00,920 Speaker 1: think it's totally awesome. I think maybe other people think 513 00:23:00,920 --> 00:23:03,680 Speaker 1: that that's insane, but I love it, dude. I feel 514 00:23:03,720 --> 00:23:07,480 Speaker 1: like we could use your budget track overall national inflation, 515 00:23:07,560 --> 00:23:09,960 Speaker 1: you know, like in every category. Uh, you want to 516 00:23:10,000 --> 00:23:12,119 Speaker 1: hear something that's really interesting though, by the way, like 517 00:23:12,160 --> 00:23:14,679 Speaker 1: specifically to grocery, Like why I brought that example up, 518 00:23:14,720 --> 00:23:17,320 Speaker 1: please tell me is because so obviously we saw we've 519 00:23:17,359 --> 00:23:20,040 Speaker 1: seen our our grocery budget go up over time, but 520 00:23:20,560 --> 00:23:26,280 Speaker 1: I've also calculated the overall budget per person and not surprisingly, 521 00:23:26,680 --> 00:23:30,119 Speaker 1: such a nerd um, we are still spending just about 522 00:23:30,240 --> 00:23:31,919 Speaker 1: the same amount that we're spending when it was just 523 00:23:32,000 --> 00:23:34,399 Speaker 1: me and Kate proportionately to the size of a family 524 00:23:34,480 --> 00:23:36,320 Speaker 1: because you only feed your children one meal a day, 525 00:23:36,400 --> 00:23:39,480 Speaker 1: exactly one meal, just like Kate and I eat no snacks. 526 00:23:40,400 --> 00:23:42,280 Speaker 1: But for real, like we we've seen an increase by 527 00:23:42,320 --> 00:23:44,760 Speaker 1: the number of you know, members we have in our family, 528 00:23:44,800 --> 00:23:46,399 Speaker 1: which is really cool. It's cool to see that that 529 00:23:46,520 --> 00:23:48,520 Speaker 1: is one area in our life that we have not 530 00:23:48,680 --> 00:23:51,639 Speaker 1: seen inflate at all, when there have been other areas 531 00:23:51,680 --> 00:23:54,199 Speaker 1: that have inflated, right, like entertainment. We've seen that go 532 00:23:54,359 --> 00:23:56,639 Speaker 1: up over time for you know, various reasons, but it's 533 00:23:56,640 --> 00:23:59,480 Speaker 1: really cool to see some specific areas like grocery. We're 534 00:23:59,560 --> 00:24:01,880 Speaker 1: kind of really sticking to like our original roots, which 535 00:24:01,920 --> 00:24:04,440 Speaker 1: is a lot of fun. Yeah, yeah, that's that's impressive, dude. 536 00:24:04,440 --> 00:24:07,520 Speaker 1: All right, Let's talk about the next budgeting method that 537 00:24:07,600 --> 00:24:10,680 Speaker 1: works for a specific personality type, and that is the 538 00:24:10,840 --> 00:24:14,040 Speaker 1: over spender. So if you tend to spend too much 539 00:24:14,359 --> 00:24:16,760 Speaker 1: and bust your budget every single month through credit card 540 00:24:16,800 --> 00:24:19,359 Speaker 1: spending or or even just spending on your debit card, 541 00:24:19,400 --> 00:24:21,560 Speaker 1: and you're getting over draft notices and having to pay 542 00:24:21,600 --> 00:24:23,760 Speaker 1: extra money to the bank because of that, well, then 543 00:24:24,240 --> 00:24:27,560 Speaker 1: the envelope budgeting method might be best for you. The 544 00:24:27,600 --> 00:24:30,480 Speaker 1: way that it works is to have actual physical envelopes 545 00:24:30,520 --> 00:24:32,560 Speaker 1: that you fill with the money every month at the 546 00:24:32,600 --> 00:24:36,600 Speaker 1: beginning of the month for categories like eating out, groceries, clothes, 547 00:24:36,680 --> 00:24:39,640 Speaker 1: and whatnot. So it's it's pretty straightforward and it helps 548 00:24:39,680 --> 00:24:42,560 Speaker 1: you actually stick to your budget because there is truly 549 00:24:42,640 --> 00:24:46,440 Speaker 1: a finite amount of cash in these different envelopes. Matt, 550 00:24:46,480 --> 00:24:49,399 Speaker 1: I've never actually done this, but for somebody who is 551 00:24:49,640 --> 00:24:54,080 Speaker 1: battling the temptation to overspend consistently because they just can't 552 00:24:54,480 --> 00:24:56,840 Speaker 1: keep the plastic out of their hands, and they're racking 553 00:24:56,920 --> 00:24:59,520 Speaker 1: up credit card debt because of it. I think going 554 00:24:59,560 --> 00:25:04,000 Speaker 1: to something as strict as the envelope method, uh specifically, 555 00:25:04,280 --> 00:25:06,639 Speaker 1: that's a really good way for the overspender to kind 556 00:25:06,640 --> 00:25:08,359 Speaker 1: of combat those urges and to to be able to 557 00:25:08,400 --> 00:25:10,080 Speaker 1: actually stick to a budget. Yeah, and I think a 558 00:25:10,119 --> 00:25:11,840 Speaker 1: lot of folks might laugh at the idea because like, 559 00:25:11,880 --> 00:25:13,919 Speaker 1: what are you gonna carry around like five different like 560 00:25:14,000 --> 00:25:16,719 Speaker 1: paper envelopes? But so old school and it it is 561 00:25:16,760 --> 00:25:18,680 Speaker 1: old school. But I wanted to mention that there are 562 00:25:19,000 --> 00:25:23,960 Speaker 1: specific special wallets made, you know, exactly for the envelope 563 00:25:23,960 --> 00:25:26,359 Speaker 1: budgeting system. They've got their little dividers in there, and 564 00:25:26,400 --> 00:25:28,480 Speaker 1: you can slide your bills in there that you're not 565 00:25:28,560 --> 00:25:31,119 Speaker 1: like walking around with, you know, wads of cash like 566 00:25:31,160 --> 00:25:33,359 Speaker 1: folded over on themselves, like stuff in your stuff in 567 00:25:33,400 --> 00:25:35,720 Speaker 1: your back pocket. I gotta imagine that's a thick wallet though. 568 00:25:35,760 --> 00:25:38,520 Speaker 1: But but yeah, I mean, I think the envelope method 569 00:25:38,600 --> 00:25:40,360 Speaker 1: is is certainly not ideal. And you know we talk 570 00:25:40,440 --> 00:25:43,239 Speaker 1: about how you know we prefer if you can use 571 00:25:43,240 --> 00:25:45,520 Speaker 1: credit cards, Well we we much prefer you to use 572 00:25:45,520 --> 00:25:48,399 Speaker 1: a credit card over overpaying in cash. There's just a 573 00:25:48,400 --> 00:25:51,320 Speaker 1: lot of advantages to to using credit cards instead of cash. 574 00:25:51,400 --> 00:25:53,639 Speaker 1: But desperate times call for desperate measures. And if you 575 00:25:53,760 --> 00:25:56,600 Speaker 1: are a person who is tempted to overspend consistently, then 576 00:25:56,720 --> 00:25:59,399 Speaker 1: then you have to resort to a budgeting method that 577 00:25:59,480 --> 00:26:01,440 Speaker 1: is going to act actually help you live within your means. 578 00:26:01,680 --> 00:26:04,320 Speaker 1: And I think the the envelope method is is definitely 579 00:26:04,359 --> 00:26:06,440 Speaker 1: one that you should strongly consider. If that's the case, 580 00:26:06,600 --> 00:26:09,040 Speaker 1: most definitely a man. And let's let's cover two as well. 581 00:26:09,080 --> 00:26:12,000 Speaker 1: This isn't necessarily a personality type, but I wanted to 582 00:26:12,040 --> 00:26:15,480 Speaker 1: cover if you have a variable income, whether your income 583 00:26:15,600 --> 00:26:18,639 Speaker 1: is steady every two weeks or if it bounces around 584 00:26:18,680 --> 00:26:21,760 Speaker 1: throughout the year, budgeting is still going to be important 585 00:26:21,760 --> 00:26:23,520 Speaker 1: for you. You you might just need to use a 586 00:26:23,560 --> 00:26:26,760 Speaker 1: slightly different technique or maybe a combination of some of 587 00:26:26,760 --> 00:26:28,919 Speaker 1: the different techniques that we've mentioned. But I think one 588 00:26:28,920 --> 00:26:30,760 Speaker 1: of the most important things to do is to make 589 00:26:30,800 --> 00:26:33,679 Speaker 1: sure that you have some financial margin in order to 590 00:26:33,880 --> 00:26:37,439 Speaker 1: weather these ups and downs of having a variable income. 591 00:26:37,800 --> 00:26:40,360 Speaker 1: Just because you have a variable income, I don't necessarily 592 00:26:40,359 --> 00:26:42,880 Speaker 1: think that means that your expenses need to go up 593 00:26:42,880 --> 00:26:45,440 Speaker 1: and down based on your income. For most folks, they 594 00:26:45,440 --> 00:26:47,160 Speaker 1: know that it takes a certain amount of money to live, 595 00:26:47,280 --> 00:26:49,159 Speaker 1: right like month to month. I know that this is 596 00:26:49,200 --> 00:26:51,040 Speaker 1: this is what it takes for us to live. And 597 00:26:51,080 --> 00:26:53,760 Speaker 1: so when you have enough margin built in, when you 598 00:26:53,760 --> 00:26:55,440 Speaker 1: have an emergency fund, like that's just what we call 599 00:26:55,520 --> 00:26:58,480 Speaker 1: our cushion, our margins, just our emergency fund. When you 600 00:26:58,520 --> 00:27:01,119 Speaker 1: have that there, you're able to weather those ups in 601 00:27:01,160 --> 00:27:02,880 Speaker 1: the downs, and you're able to kind of even out 602 00:27:02,920 --> 00:27:05,640 Speaker 1: your income because you know that, like okay right now, 603 00:27:06,080 --> 00:27:07,920 Speaker 1: And dude, I'm saying this out of experience. This month 604 00:27:07,920 --> 00:27:10,119 Speaker 1: for us super lean. Not a lot of folks are 605 00:27:10,119 --> 00:27:12,520 Speaker 1: getting married this time of the year. Uh in Atlanta, 606 00:27:12,960 --> 00:27:15,399 Speaker 1: and I had to take two thousand dollars out of 607 00:27:15,400 --> 00:27:17,920 Speaker 1: our emergency fund. Maybe they aren't, they just didn't book you. Dude, Hey, 608 00:27:18,000 --> 00:27:19,959 Speaker 1: you know what, maybe that's the case. I don't think 609 00:27:20,080 --> 00:27:23,640 Speaker 1: we're not talking about that, but I know that next 610 00:27:23,680 --> 00:27:26,320 Speaker 1: month is going to be fantastic, and so having those 611 00:27:26,320 --> 00:27:29,000 Speaker 1: funds set aside to to get us through, you know, 612 00:27:29,080 --> 00:27:31,600 Speaker 1: a leaner month, that's all you need. Like it would 613 00:27:31,600 --> 00:27:33,119 Speaker 1: be kind of silly to say, oh, no, we need 614 00:27:33,160 --> 00:27:34,879 Speaker 1: to really cut back this month because we don't have 615 00:27:34,960 --> 00:27:36,879 Speaker 1: the right income when we know that next month is 616 00:27:36,880 --> 00:27:39,440 Speaker 1: going to be more than enough. Yeah, man, I completely 617 00:27:39,480 --> 00:27:42,440 Speaker 1: agree with you. You know, I think that financial additional 618 00:27:42,480 --> 00:27:45,560 Speaker 1: financial margin is super helpful for for folks who live 619 00:27:45,880 --> 00:27:49,120 Speaker 1: life with variable income and and then you know what, 620 00:27:49,320 --> 00:27:51,440 Speaker 1: the lean month, you've got the money to to fund 621 00:27:51,480 --> 00:27:53,400 Speaker 1: your lifestyle for that month, and then the next month 622 00:27:53,560 --> 00:27:55,840 Speaker 1: you make up for it with your increased income, and 623 00:27:55,880 --> 00:27:58,000 Speaker 1: you'll be able to put that additional income back towards 624 00:27:58,040 --> 00:28:01,000 Speaker 1: that cash cushion and replenish it most definitely. Yeah. So 625 00:28:01,000 --> 00:28:02,840 Speaker 1: I'm glad we were able to talk about some personality 626 00:28:02,840 --> 00:28:05,840 Speaker 1: types and how different people can approach budgeting. But Matt, 627 00:28:05,880 --> 00:28:08,359 Speaker 1: there are also some kind of universal principles that we 628 00:28:08,400 --> 00:28:11,960 Speaker 1: need to talk about that really apply to anybody doing 629 00:28:12,000 --> 00:28:14,320 Speaker 1: any of these different budgeting methods, and we'll get to 630 00:28:14,440 --> 00:28:25,600 Speaker 1: some of those right after the break. All right, Joe, 631 00:28:25,640 --> 00:28:27,879 Speaker 1: we're back from the break. We're talking about some different 632 00:28:27,920 --> 00:28:31,400 Speaker 1: methods to budgeting. So the next step is to actually 633 00:28:31,440 --> 00:28:34,639 Speaker 1: create a budget for yourself with real dollar amounts, right 634 00:28:35,080 --> 00:28:38,200 Speaker 1: regardless if you're the person who has a plan and 635 00:28:38,240 --> 00:28:40,760 Speaker 1: thinks you know exactly what your category amounts should be, 636 00:28:41,440 --> 00:28:44,360 Speaker 1: or if you are completely clueless and have no idea 637 00:28:44,440 --> 00:28:46,640 Speaker 1: where to start. If you're either of these people, I 638 00:28:46,680 --> 00:28:51,280 Speaker 1: think regardless, everyone should begin with tracking their expenses. All 639 00:28:51,320 --> 00:28:53,400 Speaker 1: you need to do is look to last month's spending 640 00:28:53,880 --> 00:28:56,480 Speaker 1: and start there in order to be successful. The idea 641 00:28:56,520 --> 00:28:58,080 Speaker 1: here is to start with numbers that are going to 642 00:28:58,120 --> 00:29:01,040 Speaker 1: be realistic and are gonna get you close versus pulling 643 00:29:01,360 --> 00:29:03,360 Speaker 1: you know, random numbers like out of the air. And 644 00:29:03,400 --> 00:29:05,960 Speaker 1: then maybe halfway through the month, you know it's the 645 00:29:06,000 --> 00:29:08,080 Speaker 1: fifteenth thing, you look down and you realize, oh, we're 646 00:29:08,120 --> 00:29:10,560 Speaker 1: over budget already. Well that's not fun. Oh I was 647 00:29:10,640 --> 00:29:13,600 Speaker 1: way off exactly. So if you're if you're going to 648 00:29:13,680 --> 00:29:15,600 Speaker 1: fail at somebody, nobody wants to do anything that they're 649 00:29:15,600 --> 00:29:17,760 Speaker 1: going to continue to fail at. So set yourself up 650 00:29:17,760 --> 00:29:19,960 Speaker 1: for success and be realistic. Yeah, you're gonna drop that 651 00:29:19,960 --> 00:29:22,600 Speaker 1: budget quick if that's the case. So all right, Yeah, 652 00:29:22,600 --> 00:29:25,280 Speaker 1: I agree tracking is huge, Matt. I think auto tracking 653 00:29:25,840 --> 00:29:27,360 Speaker 1: is an easy way to do it, and of course 654 00:29:27,400 --> 00:29:29,000 Speaker 1: I think it's the way a lot of us are 655 00:29:29,080 --> 00:29:31,040 Speaker 1: going to choose to do it because there are apps 656 00:29:31,040 --> 00:29:33,000 Speaker 1: and tracking software that can really kind of aid us 657 00:29:33,000 --> 00:29:35,440 Speaker 1: in this process. And we mentioned wine app and Mint 658 00:29:35,440 --> 00:29:37,960 Speaker 1: earlier and those are kind of the top tier apps 659 00:29:38,000 --> 00:29:40,480 Speaker 1: when it comes to budgeting and helping you do do 660 00:29:40,600 --> 00:29:43,960 Speaker 1: better and and auto tracking what you're spending and helping 661 00:29:43,960 --> 00:29:47,720 Speaker 1: you keep that budget, and it requires less personal monitoring 662 00:29:48,120 --> 00:29:51,440 Speaker 1: to make sure expenses or categorized properly. There's even the 663 00:29:51,480 --> 00:29:54,040 Speaker 1: service called Tiller Money. I don't know if we've talked 664 00:29:54,040 --> 00:29:57,280 Speaker 1: about this before, but they will automatically import expenses into 665 00:29:57,360 --> 00:30:00,800 Speaker 1: Excel or into Google sheets to to save time. I 666 00:30:00,840 --> 00:30:04,280 Speaker 1: personally don't use it, uh, and that's primarily because of 667 00:30:04,320 --> 00:30:07,760 Speaker 1: the acts of actually manually entering these expenses in like 668 00:30:07,840 --> 00:30:10,560 Speaker 1: that can help me to realize and you know, truly 669 00:30:10,600 --> 00:30:13,400 Speaker 1: feel those expenses. We've talked before about how automating your 670 00:30:13,400 --> 00:30:15,840 Speaker 1: money there's a lot of benefits to that, but what 671 00:30:15,960 --> 00:30:18,600 Speaker 1: we kind of want to shy away from is automating 672 00:30:18,640 --> 00:30:21,040 Speaker 1: all of our expenses because you know, like for a 673 00:30:21,040 --> 00:30:23,160 Speaker 1: lot of us, if we don't see it, like we 674 00:30:23,200 --> 00:30:25,280 Speaker 1: don't really think about it out of sight, out of mind, 675 00:30:25,320 --> 00:30:27,200 Speaker 1: and so if we are not looking at what we're 676 00:30:27,200 --> 00:30:29,560 Speaker 1: spending our money on, sometimes it can be hard for 677 00:30:29,600 --> 00:30:31,080 Speaker 1: us to make those changes and make sure that we're 678 00:30:31,080 --> 00:30:33,480 Speaker 1: spending our money on the things that we want to 679 00:30:33,520 --> 00:30:35,520 Speaker 1: be spending our money on. Yeah, man, And speaking of 680 00:30:35,520 --> 00:30:40,120 Speaker 1: writing things down, you know, there's a Japanese budgeting method 681 00:30:40,360 --> 00:30:42,560 Speaker 1: if we're talking about manual tracking. We just talked about 682 00:30:42,560 --> 00:30:45,240 Speaker 1: auto tracking and how those those apps can help you. Well, 683 00:30:45,320 --> 00:30:47,480 Speaker 1: if you do it manually, I think there's there's a 684 00:30:47,520 --> 00:30:49,360 Speaker 1: great deal of benefit we can derive from that to 685 00:30:49,880 --> 00:30:54,000 Speaker 1: This Japanese budgeting method is called kakaibo. I think that's right. Okay, 686 00:30:54,000 --> 00:30:56,480 Speaker 1: all right, that's my guess. And yeah, I think that 687 00:30:56,680 --> 00:30:59,920 Speaker 1: what it does is it prioritizes actually physically putting pen 688 00:31:00,080 --> 00:31:03,520 Speaker 1: paper and writing things down, keeping a written record of 689 00:31:03,560 --> 00:31:06,120 Speaker 1: the things you've purchased and what you're doing with your money. 690 00:31:06,440 --> 00:31:08,840 Speaker 1: And there's such a powerful association that's made in our 691 00:31:08,880 --> 00:31:11,480 Speaker 1: brains when we put pen to paper. That's why people journal, 692 00:31:11,560 --> 00:31:13,600 Speaker 1: That's why people keep a diary. I mean, essentially, this 693 00:31:13,680 --> 00:31:16,040 Speaker 1: is like an expense diary. You're writing down all the 694 00:31:16,040 --> 00:31:17,760 Speaker 1: different things that you spend money on, and it's it 695 00:31:17,760 --> 00:31:19,480 Speaker 1: helps you to reflect on those things. Yeah, And I 696 00:31:19,520 --> 00:31:21,080 Speaker 1: think where you come down on this, I think it's 697 00:31:21,080 --> 00:31:23,240 Speaker 1: gonna come down to your comfort level with technology, like 698 00:31:23,240 --> 00:31:27,320 Speaker 1: your personal comfort level whether you use apps frequently and 699 00:31:27,320 --> 00:31:29,560 Speaker 1: and they kind of fit into your lifestyle or whether 700 00:31:29,680 --> 00:31:31,000 Speaker 1: you kind of write things down is going to have 701 00:31:31,040 --> 00:31:33,920 Speaker 1: more of a sustained impact and ability to help you 702 00:31:33,960 --> 00:31:35,720 Speaker 1: stick to your budget. What I mean, whatever is going 703 00:31:35,760 --> 00:31:38,520 Speaker 1: to help you the best, whether it's more automatic or 704 00:31:38,560 --> 00:31:40,960 Speaker 1: whether it's more manual, we definitely want you to go 705 00:31:41,360 --> 00:31:44,240 Speaker 1: in the direction that is going to most allow you 706 00:31:44,320 --> 00:31:46,320 Speaker 1: to actually stick to a budget and keep doing it 707 00:31:46,400 --> 00:31:48,320 Speaker 1: month after month. It also depends to you on how 708 00:31:48,400 --> 00:31:50,520 Speaker 1: much of romantic you are, right, Like if you if 709 00:31:50,520 --> 00:31:52,200 Speaker 1: you have an old soul and you want to have 710 00:31:52,240 --> 00:31:55,360 Speaker 1: like a scroll with like a fountain pen, you know, like, 711 00:31:55,400 --> 00:31:57,120 Speaker 1: if that's what works for you, go for it. I've 712 00:31:57,120 --> 00:31:59,000 Speaker 1: got this old peach of piece of parchment paper from 713 00:31:59,040 --> 00:32:01,760 Speaker 1: ancient Egypt, and that's where I keep my budget every month. 714 00:32:01,800 --> 00:32:05,280 Speaker 1: Papyrus and that like the original paper was like papyrus. Yeah, 715 00:32:05,360 --> 00:32:07,480 Speaker 1: this is not just like that crappy font. Also keep 716 00:32:07,520 --> 00:32:11,080 Speaker 1: my budget in hieroglyphics too, so that random people that 717 00:32:11,160 --> 00:32:12,840 Speaker 1: peek at my budget they don't really know what it means. 718 00:32:13,000 --> 00:32:15,360 Speaker 1: But also to Matt, another app by the way, that 719 00:32:15,400 --> 00:32:17,120 Speaker 1: can be helpful to people. We've mentioned it before in 720 00:32:17,120 --> 00:32:19,920 Speaker 1: the show A couple of times. Dollar bird, and that's 721 00:32:19,960 --> 00:32:22,640 Speaker 1: kind of like a monthly It almost combines these two 722 00:32:22,680 --> 00:32:26,920 Speaker 1: things of kind of a manual budget keeping technique by 723 00:32:26,920 --> 00:32:30,160 Speaker 1: tracking expenses on a calendar. And and so yeah, we 724 00:32:30,200 --> 00:32:32,320 Speaker 1: love that app too. It's it's really neat. Whatever works 725 00:32:32,320 --> 00:32:33,920 Speaker 1: best for you, that's what we want you to do, though. 726 00:32:34,360 --> 00:32:37,440 Speaker 1: And let's real quick talk about budget busters, right starting 727 00:32:37,560 --> 00:32:40,120 Speaker 1: with your previous month's expenses, like we just mentioned, like 728 00:32:40,160 --> 00:32:42,920 Speaker 1: that's a great way to get started with those realistic numbers. 729 00:32:43,080 --> 00:32:45,440 Speaker 1: But then don't stop there. Make sure that you are 730 00:32:45,600 --> 00:32:49,920 Speaker 1: looking at prior year budget busters, those big expenses that 731 00:32:50,040 --> 00:32:52,640 Speaker 1: only occur maybe once or twice a year. And then 732 00:32:52,680 --> 00:32:54,560 Speaker 1: once you identify those things, you want to start saving 733 00:32:54,640 --> 00:32:57,880 Speaker 1: monthly amounts for those now. So for example, what I'm 734 00:32:57,880 --> 00:32:59,920 Speaker 1: thinking of are some of the different insurance premiums that 735 00:33:00,080 --> 00:33:02,320 Speaker 1: you have, or or car maintenance that always kind of 736 00:33:02,320 --> 00:33:04,480 Speaker 1: creeps up when you at least expect it. And it 737 00:33:04,520 --> 00:33:06,000 Speaker 1: doesn't have to be like crappy things as well. It 738 00:33:06,000 --> 00:33:08,040 Speaker 1: can be fun things like saving up for Christmas or 739 00:33:08,160 --> 00:33:10,640 Speaker 1: birthday presents, or maybe going on that vacation, Like you 740 00:33:10,640 --> 00:33:12,320 Speaker 1: know that you're you're gonna want to go on a trip, 741 00:33:12,800 --> 00:33:15,000 Speaker 1: start saving for that now, so it doesn't totally can 742 00:33:15,040 --> 00:33:17,840 Speaker 1: completely wreck your budget when the time comes. Also, you 743 00:33:17,840 --> 00:33:19,880 Speaker 1: have to be flexible with a budget, right. A budget 744 00:33:19,920 --> 00:33:23,520 Speaker 1: doesn't necessarily rigidly conform, even for the type a budget 745 00:33:23,600 --> 00:33:26,280 Speaker 1: or who has a zero based budget. Even those folks 746 00:33:26,320 --> 00:33:29,400 Speaker 1: know that the budget doesn't always go according to plan. 747 00:33:29,520 --> 00:33:33,240 Speaker 1: Even though we zero based budgets might strive for perfection, 748 00:33:33,400 --> 00:33:35,200 Speaker 1: doesn't always end up perfect. Right. You're not gonna be 749 00:33:35,240 --> 00:33:36,880 Speaker 1: able to do it every single month, that's for sure. 750 00:33:37,320 --> 00:33:39,720 Speaker 1: And that's because no month is completely normal, and so 751 00:33:39,760 --> 00:33:42,800 Speaker 1: it's really important to address your overspending quickly. Yeah, and 752 00:33:42,840 --> 00:33:44,479 Speaker 1: so that if that happens to be you, like, all 753 00:33:44,520 --> 00:33:46,960 Speaker 1: you need to do is just move that budgeted money 754 00:33:47,000 --> 00:33:49,720 Speaker 1: from one category over to another in order to ensure 755 00:33:49,800 --> 00:33:52,160 Speaker 1: that you're not going over for the entire month. It's 756 00:33:52,200 --> 00:33:55,520 Speaker 1: not a huge deal money, it's fungible. Just because it 757 00:33:55,600 --> 00:33:57,160 Speaker 1: had one name on it at one point doesn't mean 758 00:33:57,200 --> 00:33:58,720 Speaker 1: you can't switch it up and slide it over to 759 00:33:58,760 --> 00:34:01,440 Speaker 1: a different category. So, for example, maybe you overdid it 760 00:34:01,560 --> 00:34:03,720 Speaker 1: unclosed this month, Well, it's not a big deal to 761 00:34:03,760 --> 00:34:06,160 Speaker 1: cut back on eating out in order to make up 762 00:34:06,160 --> 00:34:08,200 Speaker 1: for it. This will help you to master your budget 763 00:34:08,239 --> 00:34:09,759 Speaker 1: and to make it more fun because it's something that 764 00:34:09,800 --> 00:34:12,799 Speaker 1: you're actually succeeding at and when you're winning at something, 765 00:34:12,880 --> 00:34:15,560 Speaker 1: that will also make it way more enjoyable. Yeah, for sure. 766 00:34:15,960 --> 00:34:19,200 Speaker 1: And I think when I think about budgeting at its core, 767 00:34:19,760 --> 00:34:23,280 Speaker 1: essentially it's imposing at least some amount of current hardship 768 00:34:23,320 --> 00:34:27,080 Speaker 1: on yourself so that hardship doesn't get imposed on you 769 00:34:27,160 --> 00:34:30,640 Speaker 1: by outside forces in the future. By budgeting well and 770 00:34:30,640 --> 00:34:33,120 Speaker 1: spending less than you make, you'll much more easily avoid 771 00:34:33,120 --> 00:34:35,120 Speaker 1: the real money hardships that so many people have to 772 00:34:35,160 --> 00:34:37,480 Speaker 1: deal with in life. And I think if you can 773 00:34:37,760 --> 00:34:40,360 Speaker 1: find the budgeting style that works best for you, and 774 00:34:40,440 --> 00:34:42,880 Speaker 1: you can find a way to make it work for 775 00:34:42,920 --> 00:34:45,200 Speaker 1: you when it comes to the way you track and 776 00:34:45,280 --> 00:34:48,440 Speaker 1: being flexible with that budget, we truly believe that you 777 00:34:48,480 --> 00:34:51,560 Speaker 1: can have a much greater sense of control over where 778 00:34:51,600 --> 00:34:54,879 Speaker 1: your money is going. You can be happier about where 779 00:34:54,880 --> 00:34:58,000 Speaker 1: you're spending your money and even the places that other 780 00:34:58,000 --> 00:35:00,200 Speaker 1: people might look and say that's ridiculous, I can't if 781 00:35:00,200 --> 00:35:02,239 Speaker 1: you spend money on that, you can take joy in it, 782 00:35:02,360 --> 00:35:04,520 Speaker 1: you can be happy about it, and at the same time, 783 00:35:05,160 --> 00:35:09,080 Speaker 1: by creating some constraints in your life. It's going to 784 00:35:09,120 --> 00:35:11,799 Speaker 1: actually lead to a greater sense of freedom by having 785 00:35:11,800 --> 00:35:14,200 Speaker 1: this budget. Because having a budget where the money that 786 00:35:14,200 --> 00:35:17,840 Speaker 1: comes in every month goes out in ways that actually 787 00:35:17,880 --> 00:35:21,439 Speaker 1: reflect your values, it's just such a freeing way to live. So, yeah, 788 00:35:21,480 --> 00:35:25,120 Speaker 1: budgeting not a four letter word, and in actuality, budget 789 00:35:25,200 --> 00:35:28,400 Speaker 1: is a a six letter word, and it's actually a 790 00:35:28,400 --> 00:35:31,160 Speaker 1: helpful six letter word. Yeah, man, most definitely. All right, 791 00:35:31,360 --> 00:35:33,560 Speaker 1: next time you stop your toe, don't yell budget. Now 792 00:35:33,560 --> 00:35:37,120 Speaker 1: you can yield something else budget. All right, man, let's 793 00:35:37,120 --> 00:35:39,480 Speaker 1: take it back to the beer. This episode, we were 794 00:35:39,600 --> 00:35:42,880 Speaker 1: enjoying Bourbon County wheat wind Ale by Goose Island. Joel, 795 00:35:42,960 --> 00:35:45,000 Speaker 1: what were your thoughts on this beer? Man? I thought 796 00:35:45,000 --> 00:35:47,480 Speaker 1: this beer was intense in all the right ways, and 797 00:35:47,520 --> 00:35:49,960 Speaker 1: it was really unique too, because a wheat wine. I mean, 798 00:35:49,960 --> 00:35:51,759 Speaker 1: that's not many people make wheat wine. It's not a 799 00:35:51,760 --> 00:35:54,600 Speaker 1: real popular style, right, but I will say it doesn't 800 00:35:54,640 --> 00:35:56,960 Speaker 1: have wine in it, like it's called wheat wine. But 801 00:35:57,280 --> 00:36:01,319 Speaker 1: like in reality, it's just a very maul t beer, Okay. Yeah, 802 00:36:01,480 --> 00:36:03,160 Speaker 1: And you can tell that like and and it it 803 00:36:03,200 --> 00:36:05,879 Speaker 1: has kind of some like dark fruit notes, I would say, 804 00:36:06,160 --> 00:36:09,000 Speaker 1: And at the same time it has like a touch 805 00:36:09,040 --> 00:36:11,439 Speaker 1: of honey as well, so it felt a little light 806 00:36:11,480 --> 00:36:13,600 Speaker 1: at the same time. I thought it kind of hit 807 00:36:13,680 --> 00:36:15,600 Speaker 1: both ends of the spectrum, and so yeah, I think 808 00:36:15,640 --> 00:36:18,080 Speaker 1: with the dark fruits the light honey touch, there's a 809 00:36:18,120 --> 00:36:20,480 Speaker 1: bit of complexity to this one. Uh, and it was 810 00:36:20,560 --> 00:36:22,719 Speaker 1: really tasty. I enjoyed it nice. Man. Well, I want 811 00:36:22,760 --> 00:36:24,200 Speaker 1: to want to back it out and I want to 812 00:36:24,200 --> 00:36:26,040 Speaker 1: talk about the bottle because you and I we're kind 813 00:36:26,040 --> 00:36:28,759 Speaker 1: of discussing the bottle before we hit record earlier. And 814 00:36:28,760 --> 00:36:31,520 Speaker 1: it's such a classy bottle, Like it's all black for 815 00:36:31,560 --> 00:36:33,759 Speaker 1: the most part, and it's got this label hanging off 816 00:36:33,800 --> 00:36:36,000 Speaker 1: of it. Um, it's almost like kind of got this 817 00:36:36,080 --> 00:36:38,959 Speaker 1: cool little tag like a flag, Yeah, like a little 818 00:36:38,960 --> 00:36:41,040 Speaker 1: flag kind of wave, and uh, it's just got this 819 00:36:41,160 --> 00:36:43,359 Speaker 1: really classy look to it. So first of all, it's 820 00:36:43,400 --> 00:36:45,080 Speaker 1: got that going for it. And then for me, when 821 00:36:45,080 --> 00:36:47,400 Speaker 1: we poured this beer, it almost had the sweet banana 822 00:36:47,840 --> 00:36:49,840 Speaker 1: kind of smell to it. And when I took that 823 00:36:49,880 --> 00:36:52,799 Speaker 1: first sip to me was super bready almost like a 824 00:36:52,920 --> 00:36:55,640 Speaker 1: like a caramel flavor to it. I think it's awesome 825 00:36:55,680 --> 00:36:57,879 Speaker 1: that you mentioned honey because it also makes me think 826 00:36:57,880 --> 00:37:00,120 Speaker 1: of did you ever have bit oh honey, it's the 827 00:37:00,200 --> 00:37:02,600 Speaker 1: old school candy. It's like this little brown Oh, I 828 00:37:02,640 --> 00:37:04,319 Speaker 1: know what you're talking about, kind of sugary, kind of 829 00:37:04,440 --> 00:37:06,880 Speaker 1: CARAMELI I'm thinking. I guess they just kind of reminded 830 00:37:06,880 --> 00:37:09,560 Speaker 1: me of some of those dark, old, kind of classic flavors. 831 00:37:09,760 --> 00:37:12,719 Speaker 1: That's what this being reminded me of. Tasty one. Glad 832 00:37:12,760 --> 00:37:14,479 Speaker 1: to enjoy it on this episode with you, my friend. 833 00:37:14,600 --> 00:37:16,600 Speaker 1: All right, Well, that's gonna do it for this episode. 834 00:37:16,640 --> 00:37:18,839 Speaker 1: For anyone who wants the show notes, just check out 835 00:37:18,840 --> 00:37:21,440 Speaker 1: our website. It's how to money dot com. Yeah, Juel, 836 00:37:21,600 --> 00:37:24,759 Speaker 1: And in addition to our episode notes, we have some 837 00:37:24,840 --> 00:37:27,719 Speaker 1: other articles up on the website, and specifically, if you're 838 00:37:27,719 --> 00:37:29,640 Speaker 1: looking for a new credit card, we would recommend you 839 00:37:29,719 --> 00:37:32,640 Speaker 1: checking out how to money dot com forward slash credit cards. 840 00:37:32,840 --> 00:37:34,719 Speaker 1: We want to make sure that you are using your 841 00:37:34,719 --> 00:37:36,960 Speaker 1: credit card in a way that gives you the maximum 842 00:37:37,000 --> 00:37:39,160 Speaker 1: benefit based on the way that you spend your money. 843 00:37:39,440 --> 00:37:41,560 Speaker 1: That's what that article is all about. And if you 844 00:37:41,680 --> 00:37:44,120 Speaker 1: do sign up for a new card via any links 845 00:37:44,200 --> 00:37:46,640 Speaker 1: in that article, it helps out the show. So thanks 846 00:37:46,640 --> 00:37:48,840 Speaker 1: in advance. All right, Joel, that's gonna be it for 847 00:37:48,880 --> 00:37:51,879 Speaker 1: this episode, Buddy. Until next time, Best friends out best 848 00:37:51,960 --> 00:38:04,000 Speaker 1: friends out the boo