1 00:00:00,080 --> 00:00:02,800 Speaker 1: Welcome to How to Money. I'm Joel and I'm At 2 00:00:02,880 --> 00:00:05,480 Speaker 1: and today we're talking about why you need to create 3 00:00:05,519 --> 00:00:20,800 Speaker 1: a budget. So Joel, today we're gonna talk about budgets. 4 00:00:20,800 --> 00:00:22,920 Speaker 1: We're gonna We're gonna talk about how you and I 5 00:00:23,000 --> 00:00:27,200 Speaker 1: have slightly different approaches to to budgeting. Slightly different or 6 00:00:27,320 --> 00:00:29,920 Speaker 1: very different. I'm not sure we'll find out. I think 7 00:00:30,040 --> 00:00:33,080 Speaker 1: I think we do have pretty different takes on budgets, 8 00:00:33,200 --> 00:00:35,720 Speaker 1: and so I think it's really interesting getting into it, 9 00:00:35,800 --> 00:00:39,160 Speaker 1: and hopefully a lot of takeaway from people who are 10 00:00:39,440 --> 00:00:42,920 Speaker 1: frightened the budgets or you know, really want to do 11 00:00:43,000 --> 00:00:45,360 Speaker 1: a budget. I think this podcast is going to kind 12 00:00:45,360 --> 00:00:47,560 Speaker 1: of help people sort through those issues. Yeah, I feel 13 00:00:47,560 --> 00:00:49,280 Speaker 1: like that's one of the good things we've got going 14 00:00:49,360 --> 00:00:52,440 Speaker 1: for us. We like similar things, but we're very different dudes. 15 00:00:52,960 --> 00:00:55,520 Speaker 1: We have a lot of same end goals in mind, 16 00:00:55,560 --> 00:00:58,800 Speaker 1: I think, but our means of getting there often differs 17 00:00:59,120 --> 00:01:03,360 Speaker 1: great a different buddy, which is why I think it's awesome. 18 00:01:03,440 --> 00:01:05,480 Speaker 1: I'm kind of more go with your go with your gut, 19 00:01:06,400 --> 00:01:10,080 Speaker 1: and you're definitely more planned out. Let's put every I'm 20 00:01:10,120 --> 00:01:12,840 Speaker 1: the numbers guy. You're like Excel spreadsheet to the max. 21 00:01:12,880 --> 00:01:16,280 Speaker 1: Empirical data. Give it to me, that's right. Uh. And 22 00:01:16,319 --> 00:01:19,080 Speaker 1: as always on the Porn Poor podcast, we crack a 23 00:01:19,120 --> 00:01:24,520 Speaker 1: beer every time and today, Matt, you got you picked 24 00:01:24,600 --> 00:01:28,000 Speaker 1: up the beer today and what are we drinking? This 25 00:01:28,120 --> 00:01:32,600 Speaker 1: is tweak, a stout with coffee. It's aged and bourbon barrels. 26 00:01:33,160 --> 00:01:36,040 Speaker 1: I had this a few years ago. Oh, you were 27 00:01:36,040 --> 00:01:37,880 Speaker 1: actually over at our house and I give you a sip, right, 28 00:01:38,440 --> 00:01:40,600 Speaker 1: I saved some for you. Yeah, that's that's when you 29 00:01:40,600 --> 00:01:42,280 Speaker 1: first had it. So my brother in law got this 30 00:01:42,319 --> 00:01:44,560 Speaker 1: for me one Christmas. You got me a six pack 31 00:01:44,600 --> 00:01:46,560 Speaker 1: of a bunch of different beers that we don't get 32 00:01:46,600 --> 00:01:49,640 Speaker 1: here in Georgia. With this being a higher a BV. 33 00:01:49,800 --> 00:01:52,520 Speaker 1: This is a six beer, so yeah, we get every 34 00:01:52,560 --> 00:01:56,000 Speaker 1: beers here, but we don't get the big time stouts 35 00:01:56,000 --> 00:01:57,600 Speaker 1: that they make because they're big time stouts could go 36 00:01:57,680 --> 00:01:59,720 Speaker 1: up to eighteen percent, and so this one's at sixteen. 37 00:01:59,760 --> 00:02:02,200 Speaker 1: And Georgia the cap on a b V is fourteen, 38 00:02:02,240 --> 00:02:04,240 Speaker 1: so we don't get these big stouts here. But this 39 00:02:04,280 --> 00:02:06,440 Speaker 1: is Yeah, it's fantastic. Excited to have this again. It's 40 00:02:06,480 --> 00:02:08,639 Speaker 1: been it's been a while since since I've had this one. 41 00:02:09,120 --> 00:02:10,720 Speaker 1: So Matt's Poor and the beer right now. At the 42 00:02:10,800 --> 00:02:12,480 Speaker 1: end of the podcast, as always, will give you kind 43 00:02:12,480 --> 00:02:14,200 Speaker 1: of our tasting notes what we think about the beer. 44 00:02:15,040 --> 00:02:18,000 Speaker 1: And this is, if I remember correctly, one of my 45 00:02:18,040 --> 00:02:20,120 Speaker 1: favorite stouts of all time. I'm pretty pumped to be 46 00:02:20,120 --> 00:02:22,400 Speaker 1: having it again. We'll give you our tasting notes in 47 00:02:22,400 --> 00:02:24,400 Speaker 1: just a little bit. I did make it out to 48 00:02:24,440 --> 00:02:27,679 Speaker 1: the Avery Brewing Company, I guess about a year and 49 00:02:27,720 --> 00:02:31,080 Speaker 1: a half ago. It was absolutely beautiful. The beers were 50 00:02:32,040 --> 00:02:35,799 Speaker 1: there in Colorado, uh outside of Boulder, obviously in Colorado, 51 00:02:36,080 --> 00:02:38,320 Speaker 1: just outside of Boulder, I think, And oh my goodness, 52 00:02:38,560 --> 00:02:41,440 Speaker 1: their facilities amazing. They make some amazing so hours. Oh so, 53 00:02:41,520 --> 00:02:49,000 Speaker 1: by the way, Matt Avery just last month sold of 54 00:02:49,040 --> 00:02:50,919 Speaker 1: their brewery. And this is a hot topic and craft beer. 55 00:02:50,960 --> 00:02:53,720 Speaker 1: We're both in the craft beer in a huge way. 56 00:02:53,760 --> 00:02:57,040 Speaker 1: But breweries are selling out. It seems like almost every 57 00:02:57,040 --> 00:02:59,760 Speaker 1: other week you hear a report of a brewery selling 58 00:02:59,800 --> 00:03:02,560 Speaker 1: part their steak or their whole brewery to a big conglomerate. 59 00:03:02,760 --> 00:03:06,080 Speaker 1: And Avery just soldt to a Spanish company. How do 60 00:03:06,120 --> 00:03:10,679 Speaker 1: you feel about craft breweries that are selling parts or 61 00:03:10,720 --> 00:03:14,040 Speaker 1: their whole business to other companies, and especially like I guess, 62 00:03:14,040 --> 00:03:16,679 Speaker 1: the big one was wicked weeds. Telling to Budweiser that 63 00:03:16,680 --> 00:03:19,280 Speaker 1: that kind of stuff scared scares the craft that was 64 00:03:19,360 --> 00:03:21,520 Speaker 1: kind of big. I mean, I don't know, man. My 65 00:03:21,639 --> 00:03:26,560 Speaker 1: question is is the beer gonna taste different? Yeah it is? 66 00:03:26,960 --> 00:03:28,480 Speaker 1: Well no, no, no no, I'm not saying is. I'm saying 67 00:03:28,480 --> 00:03:31,040 Speaker 1: that's a big question, because then yes, then I have 68 00:03:31,080 --> 00:03:33,520 Speaker 1: a problem with that, right. You know, these are companies 69 00:03:33,520 --> 00:03:36,280 Speaker 1: where they've been working hard over years and sometimes decades 70 00:03:36,360 --> 00:03:41,280 Speaker 1: to make something fantastic, and as the owners, my natural 71 00:03:41,280 --> 00:03:43,520 Speaker 1: tendency is to think that oh, if you own it, 72 00:03:43,920 --> 00:03:45,720 Speaker 1: this is something you've worked for, is something you built, 73 00:03:45,720 --> 00:03:47,920 Speaker 1: and if you want to sell a portion of it, 74 00:03:48,120 --> 00:03:50,360 Speaker 1: and especially it means you said the only sold thirty percent, 75 00:03:51,000 --> 00:03:56,120 Speaker 1: I mean they're obviously maintaining control over the company. And 76 00:03:56,160 --> 00:03:58,160 Speaker 1: I think there's a big difference in the way that 77 00:03:58,280 --> 00:04:01,880 Speaker 1: a company sells, and it's especially in craft beer. And 78 00:04:01,920 --> 00:04:03,640 Speaker 1: we'll get to the topic at hand budgets in just 79 00:04:03,680 --> 00:04:07,080 Speaker 1: a second. I think it in craft beer, the way 80 00:04:07,120 --> 00:04:09,880 Speaker 1: you sell makes such a big difference because if it's 81 00:04:10,560 --> 00:04:14,200 Speaker 1: a Spanish company and kind of keeping similar structure and 82 00:04:14,600 --> 00:04:18,000 Speaker 1: the same brewers in place, all that stuff, keeping the 83 00:04:18,040 --> 00:04:20,960 Speaker 1: same mindset and company culture. For instance, like I think 84 00:04:20,960 --> 00:04:25,120 Speaker 1: when Heineken bought Lagunitas, they kind of wanted to everyone 85 00:04:25,160 --> 00:04:27,760 Speaker 1: to kind of remain in place, and you know, status quota, continue, 86 00:04:28,400 --> 00:04:31,760 Speaker 1: change of management, changing capital. Yeah it's under a new name. 87 00:04:31,800 --> 00:04:34,360 Speaker 1: But but with something like wickul Weed sells a percent 88 00:04:34,400 --> 00:04:38,120 Speaker 1: of Budweiser that people start to wonder, Okay, well you 89 00:04:38,200 --> 00:04:41,599 Speaker 1: also you kind of sold to the people that they 90 00:04:41,640 --> 00:04:46,120 Speaker 1: want to stamp out craft beer, you know, so it's 91 00:04:46,160 --> 00:04:48,000 Speaker 1: as seen as articles. Yeah, so it's I think it's 92 00:04:48,040 --> 00:04:51,200 Speaker 1: that kind of thing um And I don't think we 93 00:04:51,279 --> 00:04:53,480 Speaker 1: know what the overall effects is going to be, but 94 00:04:53,560 --> 00:04:55,120 Speaker 1: it's just interesting that a lot more of those are 95 00:04:55,120 --> 00:04:57,000 Speaker 1: things are happening in the craft beer world. And if 96 00:04:57,040 --> 00:04:59,960 Speaker 1: you're super into craft beer, you do care if you're 97 00:05:00,000 --> 00:05:02,560 Speaker 1: brewery sells a steak, If your local brewer right down 98 00:05:02,560 --> 00:05:06,320 Speaker 1: the street from you sells steak or sells out to 99 00:05:06,320 --> 00:05:10,359 Speaker 1: another company, it could affect the quality and and that 100 00:05:10,360 --> 00:05:13,400 Speaker 1: would absolutely be a bummer, right Yeah, But fortunately for us, 101 00:05:13,440 --> 00:05:15,120 Speaker 1: I guess there's and just how it affects the industry 102 00:05:15,120 --> 00:05:17,200 Speaker 1: as a whole, I guess as well. It's something it's 103 00:05:17,200 --> 00:05:19,919 Speaker 1: sorry for me sometimes to think beyond the immediate What 104 00:05:20,040 --> 00:05:22,559 Speaker 1: is this due to the beer, right, and if it's fine, 105 00:05:22,680 --> 00:05:26,440 Speaker 1: then maybe it's gonna be okay. But I remember reading 106 00:05:26,480 --> 00:05:28,559 Speaker 1: some on that and just how it affects the craft 107 00:05:28,600 --> 00:05:30,760 Speaker 1: beer industry as a whole and what some of the 108 00:05:31,080 --> 00:05:33,200 Speaker 1: big brewers are trying to do so well, a lot 109 00:05:33,240 --> 00:05:35,360 Speaker 1: of it comes down to tap space and shelf space, 110 00:05:36,120 --> 00:05:39,479 Speaker 1: and if you've got the big money, you contributors, you 111 00:05:39,520 --> 00:05:42,000 Speaker 1: can buy shelf space and tap space and we don't 112 00:05:42,040 --> 00:05:43,520 Speaker 1: have to get in all the nuances. But it it 113 00:05:43,640 --> 00:05:46,200 Speaker 1: does that kind of stuff, it affects that stuff in 114 00:05:46,200 --> 00:05:49,840 Speaker 1: the bottom line for everybody involved. So cheers, tweak, let's 115 00:05:49,880 --> 00:05:53,880 Speaker 1: drink smells so good? All right, We'll get to tasting 116 00:05:53,880 --> 00:05:56,760 Speaker 1: notes later on, but so fights it to say at 117 00:05:56,760 --> 00:06:01,520 Speaker 1: this point that's real good. This is fantastic. That warms 118 00:06:01,520 --> 00:06:04,160 Speaker 1: you up like your drinking bourbon too. It's just perfectly balanced. 119 00:06:04,640 --> 00:06:06,920 Speaker 1: We'll talk more about this later, all right, Matt, moving 120 00:06:06,920 --> 00:06:10,360 Speaker 1: on to the topic at hand today, budgets, and for 121 00:06:10,400 --> 00:06:13,400 Speaker 1: a lot of people that's a really scary word. So 122 00:06:13,640 --> 00:06:17,640 Speaker 1: let's kind of define it and talk about why maybe 123 00:06:17,640 --> 00:06:21,720 Speaker 1: it's not as frightening as it initially sounds. Yeah, man, absolutely, 124 00:06:21,760 --> 00:06:25,760 Speaker 1: so to me, a budget is just us deciding, like 125 00:06:25,760 --> 00:06:28,440 Speaker 1: where we're going to spend the money before you actually 126 00:06:28,520 --> 00:06:32,320 Speaker 1: spend it. Right, It's not some sort of list of 127 00:06:32,400 --> 00:06:36,440 Speaker 1: rules that you have to follow or abide by or 128 00:06:36,520 --> 00:06:39,800 Speaker 1: you swear to. It's just having a plan. That's the 129 00:06:39,800 --> 00:06:42,200 Speaker 1: easiest way to describe it. It's saying that this is 130 00:06:42,200 --> 00:06:44,240 Speaker 1: how much income I'm going to half of the month. 131 00:06:44,320 --> 00:06:47,480 Speaker 1: It's listing out your expenses. It's deciding where you're going 132 00:06:47,520 --> 00:06:49,960 Speaker 1: to spend that money and then just sticking to it. 133 00:06:49,960 --> 00:06:51,880 Speaker 1: It's just I mean literally, it's just a plan you 134 00:06:52,240 --> 00:06:54,200 Speaker 1: and you get to decide that plan, right. It's not 135 00:06:54,240 --> 00:06:56,880 Speaker 1: like somebody else is gonna say, oh no, you must 136 00:06:56,880 --> 00:07:00,600 Speaker 1: do it this way. Certainly, there's tactics and ways and 137 00:07:00,680 --> 00:07:02,840 Speaker 1: approaches to creating a budget, but when it comes to 138 00:07:02,960 --> 00:07:05,800 Speaker 1: the actual amounts within the budget and you in your 139 00:07:05,839 --> 00:07:09,480 Speaker 1: different categories, you're gonna put your dollars on the things 140 00:07:09,520 --> 00:07:11,960 Speaker 1: that you value. That's what That's what makes it yours 141 00:07:11,960 --> 00:07:14,160 Speaker 1: as well. So what would you say to someone that 142 00:07:14,240 --> 00:07:18,560 Speaker 1: thinks that a budget is limiting. No, a budget is 143 00:07:18,600 --> 00:07:22,560 Speaker 1: not limiting per se. You're not sort of keeping yourself 144 00:07:22,560 --> 00:07:24,480 Speaker 1: from doing things unless that's what you want to do. 145 00:07:24,920 --> 00:07:28,520 Speaker 1: You're deciding now what you're gonna do down the down 146 00:07:28,520 --> 00:07:30,400 Speaker 1: the road and in the in the weeks to come 147 00:07:30,600 --> 00:07:33,040 Speaker 1: in that month. And so if you know at the 148 00:07:33,040 --> 00:07:34,840 Speaker 1: beginning of the month that like, oh, it's I'm gonna 149 00:07:34,840 --> 00:07:38,240 Speaker 1: want to do these other things because I can't. I'm 150 00:07:38,240 --> 00:07:40,720 Speaker 1: not gonna behave and I'm gonna spend my money as 151 00:07:40,760 --> 00:07:42,520 Speaker 1: soon as I get it, well, it's good at the 152 00:07:42,520 --> 00:07:44,880 Speaker 1: beginning of the month to sit down and think ahead 153 00:07:44,920 --> 00:07:47,440 Speaker 1: a little bit. Really, all it is is just thinking 154 00:07:47,480 --> 00:07:50,800 Speaker 1: ahead and making a plan. Yeah. I think most people 155 00:07:50,840 --> 00:07:55,520 Speaker 1: think that a budget is about depriving yourself, so you 156 00:07:55,880 --> 00:07:58,360 Speaker 1: spend as little money as possible and you allocated to 157 00:07:58,440 --> 00:08:02,160 Speaker 1: the right places. But really, when it comes down to it, 158 00:08:02,680 --> 00:08:07,120 Speaker 1: you're living a water and gruel lifestyle to try to 159 00:08:07,160 --> 00:08:10,600 Speaker 1: skip by because that's what it takes. That's what budgeting is. 160 00:08:10,640 --> 00:08:13,360 Speaker 1: It's it's that sort of a process. It's a it's 161 00:08:13,360 --> 00:08:16,320 Speaker 1: a slog and I think that's probably where people get 162 00:08:16,360 --> 00:08:18,720 Speaker 1: bogged down. Initially. I don't want to do a budget 163 00:08:18,760 --> 00:08:20,800 Speaker 1: because it means it's gonna restrict me in all these ways. 164 00:08:21,280 --> 00:08:23,440 Speaker 1: I want to be able to go out and eat right. Yeah, 165 00:08:23,480 --> 00:08:24,760 Speaker 1: folks are like, well, I still want to go and 166 00:08:24,800 --> 00:08:28,120 Speaker 1: get my nails done, or whatever arguments there are against it. 167 00:08:29,360 --> 00:08:31,480 Speaker 1: That's what keeps people, I think a lot of times right, 168 00:08:31,520 --> 00:08:34,120 Speaker 1: that's what keeps people totally from from doing it. And 169 00:08:34,120 --> 00:08:37,200 Speaker 1: in the trick is I guess that you you have 170 00:08:37,240 --> 00:08:39,440 Speaker 1: to prioritize those things, and some of those things you 171 00:08:39,520 --> 00:08:42,120 Speaker 1: will have to cut back if you want to meet 172 00:08:42,240 --> 00:08:45,000 Speaker 1: other goals that you have. So you have to make 173 00:08:45,040 --> 00:08:49,400 Speaker 1: decisions sometimes now in the short term that will impact 174 00:08:49,400 --> 00:08:53,320 Speaker 1: your long term budget, and so it might take cutting 175 00:08:53,320 --> 00:08:55,840 Speaker 1: back on certain things that you deem not as important 176 00:08:56,679 --> 00:09:00,600 Speaker 1: in the immediate in order to achieve that long term success. 177 00:09:00,760 --> 00:09:03,840 Speaker 1: If you want to take a trip next year to Europe, 178 00:09:04,400 --> 00:09:07,360 Speaker 1: you can start budgeting for that, start saving now absolutely, 179 00:09:07,440 --> 00:09:11,560 Speaker 1: as opposed to the typical finances sort of model is 180 00:09:12,080 --> 00:09:13,960 Speaker 1: don't plan ahead, you do it when you want, and 181 00:09:13,960 --> 00:09:15,600 Speaker 1: then you end up paying for it after the fact. 182 00:09:15,679 --> 00:09:18,080 Speaker 1: But what are you you also paying for after the 183 00:09:18,120 --> 00:09:21,360 Speaker 1: fact if you've financed it, you're paying for financing, you're 184 00:09:21,360 --> 00:09:24,040 Speaker 1: paying interest. Yeah, you're paying interest on it as opposed 185 00:09:24,080 --> 00:09:26,800 Speaker 1: to saving ahead of time. So it's it's almost like 186 00:09:26,840 --> 00:09:31,120 Speaker 1: a reverse payment program. Instead of paying a bank or 187 00:09:31,160 --> 00:09:33,560 Speaker 1: a lender. After the fact, you're you're just saving up 188 00:09:33,559 --> 00:09:36,480 Speaker 1: and paying yourself ahead of time. I think one of 189 00:09:36,520 --> 00:09:40,720 Speaker 1: the most difficult aspects of budgeting for me sometimes is 190 00:09:41,160 --> 00:09:44,360 Speaker 1: I forget to make it personal. And I think that 191 00:09:44,400 --> 00:09:47,199 Speaker 1: when it comes down to it, I'm better at budgeting 192 00:09:47,960 --> 00:09:51,840 Speaker 1: when I truly make it personal to what I need. 193 00:09:52,040 --> 00:09:54,800 Speaker 1: And sometimes I guess we all do this. We begin 194 00:09:54,840 --> 00:09:56,600 Speaker 1: to think, well, this is what everyone else is doing, 195 00:09:56,720 --> 00:09:59,240 Speaker 1: or this is this is what my budget should look like. 196 00:10:00,120 --> 00:10:01,720 Speaker 1: But really you have to make it personal. And if 197 00:10:01,720 --> 00:10:04,160 Speaker 1: you want to drop four thousand dollars a year on travel, 198 00:10:04,640 --> 00:10:07,400 Speaker 1: you can do that, but you just need to budget 199 00:10:07,480 --> 00:10:09,680 Speaker 1: for it. Just put it on there the every month 200 00:10:09,720 --> 00:10:11,760 Speaker 1: that you're gonna set aside. However, many you know four 201 00:10:11,800 --> 00:10:14,680 Speaker 1: thousand about about by twelve months, and now you know that, 202 00:10:14,760 --> 00:10:16,560 Speaker 1: like every month, we need to set aside this much 203 00:10:16,600 --> 00:10:19,640 Speaker 1: money towards that one trip at the end of the year, 204 00:10:19,720 --> 00:10:21,959 Speaker 1: or for the two trips that we have. If it's 205 00:10:21,960 --> 00:10:23,920 Speaker 1: a priority for you, man make it happen. It's just 206 00:10:23,960 --> 00:10:27,960 Speaker 1: about making those decisions before they happen. That way, you 207 00:10:28,040 --> 00:10:30,920 Speaker 1: have time to prepare for it. So do you always 208 00:10:30,960 --> 00:10:34,000 Speaker 1: budget so like before and well, specific to before you 209 00:10:34,000 --> 00:10:36,440 Speaker 1: and Emily got married, did you budget when back when 210 00:10:36,480 --> 00:10:39,640 Speaker 1: you're single? No, I didn't budget, and I'll tell you why. 211 00:10:40,120 --> 00:10:42,960 Speaker 1: And and Emily and I've had a difficult time at 212 00:10:43,000 --> 00:10:45,840 Speaker 1: times trying to figure out budgeting in our marriage because 213 00:10:46,679 --> 00:10:48,520 Speaker 1: I do have a kind of this like mental roadblock, 214 00:10:48,520 --> 00:10:51,520 Speaker 1: aversion to budgeting, and part of it is and I 215 00:10:51,559 --> 00:10:53,600 Speaker 1: wrote an article actually a few years back on my 216 00:10:53,840 --> 00:10:57,440 Speaker 1: personal blog about why I didn't budget. And I think 217 00:10:57,440 --> 00:11:00,920 Speaker 1: it's okay for some people at different times in life 218 00:11:01,679 --> 00:11:04,360 Speaker 1: to not have to budget, but not for most people, 219 00:11:04,720 --> 00:11:06,800 Speaker 1: only for a few And the reason I think it 220 00:11:06,840 --> 00:11:10,000 Speaker 1: works for me is because I was so frugal. I 221 00:11:10,120 --> 00:11:13,960 Speaker 1: was so into not spending money for quite a long 222 00:11:14,000 --> 00:11:16,360 Speaker 1: period of time, and I liked seeing my balance grow 223 00:11:16,400 --> 00:11:20,760 Speaker 1: every month. I just didn't really buy needless things, and 224 00:11:20,760 --> 00:11:22,800 Speaker 1: in lifestyle creep wasn't really a factor for me at 225 00:11:22,840 --> 00:11:25,079 Speaker 1: that point in time. You're you're living so cheap that 226 00:11:25,600 --> 00:11:28,360 Speaker 1: making a budget for you maybe wasn't the wisest used 227 00:11:28,400 --> 00:11:30,480 Speaker 1: to your time, because it's fine you were, you were 228 00:11:30,480 --> 00:11:33,240 Speaker 1: spending nothing on everything, right, And I felt like, I 229 00:11:33,240 --> 00:11:34,880 Speaker 1: think at that point in time, I was probably like 230 00:11:34,920 --> 00:11:38,320 Speaker 1: working more hours and so less time to spend and 231 00:11:38,360 --> 00:11:41,240 Speaker 1: I was just really kind of focused on building something. 232 00:11:42,000 --> 00:11:44,160 Speaker 1: I see the need for a budget in our lives 233 00:11:44,720 --> 00:11:47,760 Speaker 1: more now than I have in quite some time. And 234 00:11:47,840 --> 00:11:49,960 Speaker 1: so this actually, this next year, it's gonna be really 235 00:11:49,960 --> 00:11:52,760 Speaker 1: big focus for us to actually kind of adopt a 236 00:11:52,800 --> 00:11:55,640 Speaker 1: budget again and try to because we have a goal 237 00:11:55,679 --> 00:11:59,120 Speaker 1: in mind. Because actually, and here's the goal. We bought 238 00:11:59,120 --> 00:12:01,880 Speaker 1: a rental property recently, and we did take out a 239 00:12:01,920 --> 00:12:04,680 Speaker 1: small portion of our home equity loan UH in order 240 00:12:04,720 --> 00:12:08,680 Speaker 1: to put down to get this rental property. And so 241 00:12:09,080 --> 00:12:13,040 Speaker 1: we want to pay that off in months. Yeah, we 242 00:12:13,040 --> 00:12:15,480 Speaker 1: want to pay that off quickly, and I gotta have 243 00:12:15,480 --> 00:12:17,600 Speaker 1: a plan if you want to do that, do that exactly. Yeah, 244 00:12:17,640 --> 00:12:20,280 Speaker 1: And so we're like, we're not terribly uncomfortable with it 245 00:12:20,320 --> 00:12:22,120 Speaker 1: being there, but we'd rather get rid of it. And 246 00:12:22,160 --> 00:12:24,400 Speaker 1: the only way for us to do that, well, I think, 247 00:12:24,520 --> 00:12:26,960 Speaker 1: is to budget for the first six eight months, get 248 00:12:26,960 --> 00:12:29,320 Speaker 1: back into it, pay it off quickly, and then you 249 00:12:29,360 --> 00:12:30,920 Speaker 1: know what, I think that that that we're just in 250 00:12:31,000 --> 00:12:32,800 Speaker 1: a phase where we're gonna be budgeting for a while. 251 00:12:33,240 --> 00:12:35,240 Speaker 1: But then maybe at some point we'll be in another 252 00:12:35,280 --> 00:12:37,720 Speaker 1: phase of life where we don't feel the strong need 253 00:12:37,800 --> 00:12:42,720 Speaker 1: to budget and sit down every week or month and 254 00:12:42,800 --> 00:12:44,480 Speaker 1: do that. But we are in a phase in life 255 00:12:44,480 --> 00:12:46,960 Speaker 1: where we're getting back into that and we're really excited 256 00:12:47,000 --> 00:12:49,480 Speaker 1: to get back into it. Yeah. I think the biggest 257 00:12:49,520 --> 00:12:53,199 Speaker 1: thing with that is especially if you have a partner, 258 00:12:54,040 --> 00:12:56,319 Speaker 1: especially if you have a wife. And this is where 259 00:12:56,320 --> 00:12:58,560 Speaker 1: it came down for me and Emily, where budgeting actually 260 00:12:58,559 --> 00:13:01,040 Speaker 1: really begin to help us get on the same page 261 00:13:01,040 --> 00:13:03,600 Speaker 1: about money, was that I was so frugal and she 262 00:13:03,640 --> 00:13:06,439 Speaker 1: would feel bad if she spent money, even though like 263 00:13:06,559 --> 00:13:09,240 Speaker 1: I didn't want her to feel bad. I didn't want 264 00:13:09,280 --> 00:13:11,800 Speaker 1: her not to be free to make that decision to 265 00:13:12,360 --> 00:13:15,280 Speaker 1: buy something, but because of my mindset and her knowing 266 00:13:15,400 --> 00:13:19,080 Speaker 1: my mindset about money, she felt uncomfortable making that spend, 267 00:13:19,400 --> 00:13:23,400 Speaker 1: buying that item of clothing or going out to eat. 268 00:13:23,440 --> 00:13:26,320 Speaker 1: It was always kind of, well, should we go to 269 00:13:26,880 --> 00:13:29,200 Speaker 1: the restaurant that's where we're only going to spend like 270 00:13:29,280 --> 00:13:31,079 Speaker 1: forty bucks or is it okay if we go to 271 00:13:31,120 --> 00:13:33,600 Speaker 1: the restaurant, we're gonna drop seventy five dollars tonight. And 272 00:13:33,679 --> 00:13:36,000 Speaker 1: because it wasn't down on paper and it wasn't something 273 00:13:36,000 --> 00:13:39,840 Speaker 1: that we discussed, it was this thing that we just 274 00:13:40,000 --> 00:13:43,600 Speaker 1: didn't talk about and it was this unsaid like difficulty 275 00:13:43,720 --> 00:13:45,839 Speaker 1: in our marriage. And so that's where budgeting for us 276 00:13:45,840 --> 00:13:48,040 Speaker 1: really comes out. If it was just me, I could 277 00:13:48,040 --> 00:13:51,800 Speaker 1: get by without a budget, but because it involves my 278 00:13:51,840 --> 00:13:54,880 Speaker 1: wife and feelings and how we process things together, it's 279 00:13:54,920 --> 00:13:58,160 Speaker 1: really really helpful for us to be on the same page. Yeah, 280 00:13:58,240 --> 00:14:01,880 Speaker 1: for us, it was didn't want to do it at all, 281 00:14:01,920 --> 00:14:03,600 Speaker 1: Like she she saw it sort of like we talked 282 00:14:03,600 --> 00:14:06,520 Speaker 1: about initially, where it was this thing where we're gonna 283 00:14:06,600 --> 00:14:10,439 Speaker 1: be enslaved to the numbers and whatever, whatever the charts 284 00:14:10,520 --> 00:14:12,120 Speaker 1: or whatever the numbers say, that that's what we have 285 00:14:12,200 --> 00:14:14,480 Speaker 1: to do. So after talking with her about it and 286 00:14:14,559 --> 00:14:18,160 Speaker 1: learning what it really is, she saw basically the freedom 287 00:14:18,160 --> 00:14:20,200 Speaker 1: in that. And so she saw that, Okay, at the 288 00:14:20,200 --> 00:14:21,720 Speaker 1: beginning of the month, we're both going to talk about 289 00:14:21,760 --> 00:14:24,240 Speaker 1: this and we're gonna decide together what we're going to 290 00:14:24,320 --> 00:14:26,960 Speaker 1: spend on whatever it's going to be, say, you know, 291 00:14:27,000 --> 00:14:30,040 Speaker 1: going out to eat. Well, then once you've decided what 292 00:14:30,080 --> 00:14:32,720 Speaker 1: that number is, like we have to I mean, and 293 00:14:33,080 --> 00:14:34,720 Speaker 1: this is how we approached it, was that you we 294 00:14:34,760 --> 00:14:36,760 Speaker 1: had to spend that money because we've decided that's what 295 00:14:36,760 --> 00:14:39,240 Speaker 1: we're gonna do, and so there was no guilt at 296 00:14:39,280 --> 00:14:41,680 Speaker 1: all associated with, say, going out to eat. It was 297 00:14:41,720 --> 00:14:44,640 Speaker 1: a matter of that, you know, we decided that this 298 00:14:44,640 --> 00:14:46,000 Speaker 1: is what we're gonna do, so let's do it, let's 299 00:14:46,000 --> 00:14:49,760 Speaker 1: have fun. And once that sort of clicked for definitely 300 00:14:49,800 --> 00:14:52,560 Speaker 1: for Kate, then we were able to man totally get 301 00:14:52,600 --> 00:14:54,160 Speaker 1: on the same page. She saw it as a as 302 00:14:54,240 --> 00:14:58,000 Speaker 1: a a tool that sort of got rid of that guilty. 303 00:14:58,840 --> 00:15:00,520 Speaker 1: Do you let things roll over or from month to 304 00:15:00,560 --> 00:15:03,800 Speaker 1: month in your budget? Let's say you and Kate each 305 00:15:03,800 --> 00:15:06,800 Speaker 1: have like a personal expense account and you usually have 306 00:15:06,800 --> 00:15:08,800 Speaker 1: a certain amount of lotted into it where Matt can 307 00:15:08,840 --> 00:15:12,560 Speaker 1: buy whatever he wants that month that's fifty bucks or under. 308 00:15:12,840 --> 00:15:17,280 Speaker 1: But let's see you're saving up for something that's do 309 00:15:17,280 --> 00:15:19,640 Speaker 1: you roll that over? How does that work in your budget? Yeah, 310 00:15:19,680 --> 00:15:21,880 Speaker 1: so we actually we do. We do roll it over, 311 00:15:21,920 --> 00:15:24,720 Speaker 1: so we don't have a monthly we we don't have 312 00:15:24,760 --> 00:15:28,040 Speaker 1: a monthly amount where we're basically forcing ourselves to spend that. 313 00:15:28,080 --> 00:15:30,200 Speaker 1: And if you don't think it's just sort of gone, 314 00:15:30,680 --> 00:15:32,280 Speaker 1: that kind of goes for us. I've we've got this 315 00:15:32,400 --> 00:15:36,440 Speaker 1: overly complicated budget because I'm a nerd, but where we 316 00:15:36,480 --> 00:15:38,360 Speaker 1: each get a certain amount that we've decided that we're 317 00:15:38,360 --> 00:15:41,720 Speaker 1: gonna get every month, and and if you spend it, 318 00:15:41,840 --> 00:15:44,200 Speaker 1: then you spend it. But otherwise, for the most part, 319 00:15:44,200 --> 00:15:46,280 Speaker 1: we're saving up in the in those in those buckets. 320 00:15:46,400 --> 00:15:47,880 Speaker 1: Is another way to look at it that we've that's 321 00:15:47,880 --> 00:15:50,440 Speaker 1: how we've talked about it before as well, that we're 322 00:15:51,040 --> 00:15:53,720 Speaker 1: sort of letting the bucket grow because we know that, Yeah, 323 00:15:53,720 --> 00:15:55,280 Speaker 1: in my case, oh, I'm gonna get it. I'm gonna 324 00:15:55,280 --> 00:15:58,440 Speaker 1: get a bike. Uh, and it's gonna cost thousand, two 325 00:15:58,440 --> 00:16:01,160 Speaker 1: thousand bucks and I'm not gonna be spending a whole 326 00:16:01,160 --> 00:16:03,560 Speaker 1: lot of money on other other other things. All right, 327 00:16:03,600 --> 00:16:05,240 Speaker 1: what if you buy that item early on in the 328 00:16:05,320 --> 00:16:09,680 Speaker 1: year and so you're in negative in your personal account 329 00:16:09,760 --> 00:16:13,640 Speaker 1: on the budget, how do you tell that? So it's 330 00:16:13,680 --> 00:16:15,440 Speaker 1: it's just as there as a as a negative that 331 00:16:15,600 --> 00:16:18,080 Speaker 1: we try not to let that happen. But when it does, 332 00:16:18,720 --> 00:16:20,480 Speaker 1: it since there as a as a negative, and then 333 00:16:20,520 --> 00:16:23,200 Speaker 1: it slowly takes back up as the as the months progress. 334 00:16:23,240 --> 00:16:25,680 Speaker 1: And yeah, in general, we try not to dip down 335 00:16:25,680 --> 00:16:28,960 Speaker 1: into the red. General good rule of budget, good rule 336 00:16:29,000 --> 00:16:30,960 Speaker 1: of thumb, don't get in the red. I mean that's 337 00:16:30,960 --> 00:16:33,560 Speaker 1: one of the reasons why, right, it's just if you're 338 00:16:33,600 --> 00:16:37,480 Speaker 1: on the same page with your spouse, it helps two 339 00:16:38,440 --> 00:16:40,840 Speaker 1: work as a team. When you can work as a team, 340 00:16:40,840 --> 00:16:42,400 Speaker 1: you're just going to be able to get so much 341 00:16:42,440 --> 00:16:46,080 Speaker 1: more done having that accountability to your significant other. And 342 00:16:46,120 --> 00:16:50,520 Speaker 1: even if it's not a spouse or I think having 343 00:16:50,520 --> 00:16:52,440 Speaker 1: a friend or somebody that you can sort of talk 344 00:16:52,480 --> 00:16:55,880 Speaker 1: to and about your goals, I think that's really helpful 345 00:16:55,880 --> 00:16:57,560 Speaker 1: as well. I don't I don't think there's very many 346 00:16:57,560 --> 00:17:00,040 Speaker 1: people at all that do that. But the reason that 347 00:17:00,160 --> 00:17:01,840 Speaker 1: I say that is because this is something that not 348 00:17:01,920 --> 00:17:05,240 Speaker 1: just couples can do, but yeah, somebody that's not in 349 00:17:05,240 --> 00:17:07,119 Speaker 1: a relationship as well. Well. It's interesting. I feel like 350 00:17:07,119 --> 00:17:09,720 Speaker 1: a lot of people actually have found kind of some 351 00:17:09,840 --> 00:17:14,280 Speaker 1: therapy in starting like a blog to document how they're 352 00:17:14,320 --> 00:17:18,920 Speaker 1: doing with budgeting. And actually a lot of successful online 353 00:17:19,080 --> 00:17:24,760 Speaker 1: entrepreneurs started off as budget bloggers talking about getting out 354 00:17:24,760 --> 00:17:28,800 Speaker 1: of debt and how they kind of pulled themselves up 355 00:17:28,800 --> 00:17:31,320 Speaker 1: out of their out of their debt hole and now 356 00:17:31,400 --> 00:17:34,720 Speaker 1: they're budget masters, and so those people are always interesting 357 00:17:34,800 --> 00:17:36,800 Speaker 1: to read. And there's just a lot of people like that. 358 00:17:36,840 --> 00:17:38,800 Speaker 1: So maybe for you, maybe it's not even public. But 359 00:17:38,840 --> 00:17:41,400 Speaker 1: maybe it's just journaling about it, but writing it down 360 00:17:41,400 --> 00:17:43,840 Speaker 1: and keeping track of your progress and having some sort 361 00:17:43,880 --> 00:17:47,320 Speaker 1: of visual record of what you're working towards and what 362 00:17:47,359 --> 00:17:50,800 Speaker 1: you've what you've done. I mean for me, So I 363 00:17:50,840 --> 00:17:55,879 Speaker 1: started making my budgets back in ten years ago, right 364 00:17:55,920 --> 00:17:58,399 Speaker 1: out ten years ago. Now what's kind of crazy is 365 00:17:58,440 --> 00:18:00,320 Speaker 1: that I can look back and see what I was 366 00:18:00,359 --> 00:18:02,760 Speaker 1: saving towards back then, see see how much I was spending. 367 00:18:03,200 --> 00:18:06,200 Speaker 1: It was significantly less than what we spend now is 368 00:18:06,240 --> 00:18:10,240 Speaker 1: a family of five. But it's actually, it's it's really cool, 369 00:18:10,280 --> 00:18:12,560 Speaker 1: I think to be able to it's sort of a 370 00:18:12,560 --> 00:18:14,399 Speaker 1: a time machine in a in a sence, you know, 371 00:18:14,600 --> 00:18:16,760 Speaker 1: to kind of be able to go back and look 372 00:18:17,280 --> 00:18:19,200 Speaker 1: and say, oh, this is we thought this was such 373 00:18:19,200 --> 00:18:23,280 Speaker 1: a huge deal. It was not. Or we saw, you know, 374 00:18:23,359 --> 00:18:25,320 Speaker 1: this came up and this kind of wrecked us for 375 00:18:25,400 --> 00:18:27,400 Speaker 1: a couple of months there, but in reality we saw 376 00:18:27,440 --> 00:18:29,560 Speaker 1: how it kind of ended up being okay, and we 377 00:18:29,680 --> 00:18:32,120 Speaker 1: kind of stuck to the plan and because of that 378 00:18:32,480 --> 00:18:35,600 Speaker 1: where where we are today. So yeah, I wanted to 379 00:18:35,600 --> 00:18:37,800 Speaker 1: talk to about how just in general, so we're I mean, 380 00:18:37,800 --> 00:18:39,399 Speaker 1: we're talking about why you need to budget, right, So 381 00:18:39,440 --> 00:18:45,040 Speaker 1: as a tool. What a budget does essentially is takes 382 00:18:45,080 --> 00:18:47,640 Speaker 1: this plan that you want to have right in regards 383 00:18:47,680 --> 00:18:49,919 Speaker 1: to your finances and your money, and it takes it 384 00:18:49,960 --> 00:18:52,879 Speaker 1: and it links your plan that you have in your 385 00:18:52,880 --> 00:18:57,240 Speaker 1: head two your behavior and how you actually live throughout 386 00:18:57,240 --> 00:18:59,119 Speaker 1: the month, because you can we can think that we 387 00:18:59,160 --> 00:19:02,080 Speaker 1: want to do something all day long, but if we 388 00:19:02,160 --> 00:19:03,720 Speaker 1: don't really have a plan for it or have it 389 00:19:03,760 --> 00:19:05,840 Speaker 1: written down, we're just gonna do what we're gonna do. 390 00:19:05,920 --> 00:19:07,800 Speaker 1: Our friends are gonna go out and oh this is 391 00:19:07,840 --> 00:19:09,480 Speaker 1: coming up, or oh man, this show is in town. 392 00:19:09,640 --> 00:19:12,040 Speaker 1: Oh man, there's so much fun stuff I want to 393 00:19:12,040 --> 00:19:15,320 Speaker 1: do and things I want to buy, and you misbehave 394 00:19:16,440 --> 00:19:18,479 Speaker 1: and then you're you look at back at the end 395 00:19:18,480 --> 00:19:20,200 Speaker 1: of the month and you think, oh my gosh, where 396 00:19:20,200 --> 00:19:22,560 Speaker 1: did where did all my money go? The budget is 397 00:19:22,560 --> 00:19:25,760 Speaker 1: there to keep you in line, and it's yourself keeping 398 00:19:25,760 --> 00:19:27,960 Speaker 1: yourself online. It's not like it's somebody else. You get 399 00:19:27,960 --> 00:19:32,359 Speaker 1: to do this to yourself. It's like your your past 400 00:19:32,400 --> 00:19:35,440 Speaker 1: self telling your future self how you're gonna behave and 401 00:19:35,920 --> 00:19:38,679 Speaker 1: sticking to it. So, Joel, are you act like are 402 00:19:38,680 --> 00:19:41,639 Speaker 1: you naturally a spender or a saver? I mean so 403 00:19:41,840 --> 00:19:44,320 Speaker 1: and I asked this because earlier this morning, we're having 404 00:19:44,359 --> 00:19:49,359 Speaker 1: a conversation and you're taking some anagram, any aramagram or something, 405 00:19:49,359 --> 00:19:51,359 Speaker 1: and you're talking about how, oh, man, maybe I'm not 406 00:19:51,560 --> 00:19:57,240 Speaker 1: actually a sort of a minimalist, saver, kind of frugal type, right. 407 00:19:58,240 --> 00:20:00,600 Speaker 1: Do you think you're naturally a spender or say so? 408 00:20:00,640 --> 00:20:06,320 Speaker 1: I think, deep down, at my core, I'm probably a 409 00:20:06,359 --> 00:20:09,320 Speaker 1: little bit of a spender. But I think some of 410 00:20:09,359 --> 00:20:11,760 Speaker 1: the circumstances that happened in my life and in childhood 411 00:20:11,880 --> 00:20:14,359 Speaker 1: have driven me to be frugal, to be a saver, 412 00:20:15,160 --> 00:20:19,800 Speaker 1: to desire security in that way. I don't think I'm 413 00:20:20,040 --> 00:20:24,679 Speaker 1: naturally this minimalist, frugal guy, but that is part of me, 414 00:20:24,760 --> 00:20:26,440 Speaker 1: and it's ingrained in me at this point because it's 415 00:20:26,440 --> 00:20:28,560 Speaker 1: something that I've learned over years and years and years. 416 00:20:29,040 --> 00:20:32,000 Speaker 1: It's kind of yeah, it's kind of shaped you to 417 00:20:32,000 --> 00:20:34,080 Speaker 1: to kind of be who you are today. Yeah, but 418 00:20:34,240 --> 00:20:37,679 Speaker 1: you I gotta I gotta imagine that you are to 419 00:20:37,760 --> 00:20:43,159 Speaker 1: the core. Man. I It's tough because there's things that 420 00:20:43,200 --> 00:20:45,320 Speaker 1: come along and I think, oh I need this, or 421 00:20:45,320 --> 00:20:47,200 Speaker 1: oh I really want this for for me, I want 422 00:20:47,200 --> 00:20:49,840 Speaker 1: this for our family. These are these are now priorities, 423 00:20:50,160 --> 00:20:52,080 Speaker 1: and a lot of times those things involved a lot 424 00:20:52,080 --> 00:20:55,080 Speaker 1: of money, and so therefore we're spending We're spending money 425 00:20:55,119 --> 00:20:59,440 Speaker 1: but kind of left to my own so my own devices. 426 00:20:59,560 --> 00:21:02,199 Speaker 1: And if it was just me, if I was a 427 00:21:02,200 --> 00:21:04,920 Speaker 1: single dude, I would be a sad single dude living 428 00:21:04,960 --> 00:21:08,920 Speaker 1: by myself, not spending any money, without a life, and 429 00:21:09,520 --> 00:21:13,320 Speaker 1: nobody would want to be my friend. Dude. I'm serious. Uh, 430 00:21:13,920 --> 00:21:16,920 Speaker 1: Having Kate to kind of balance me, bounce me out 431 00:21:16,960 --> 00:21:19,760 Speaker 1: and that in that sense has been very good for 432 00:21:19,760 --> 00:21:23,320 Speaker 1: for who I am. But I do so because of that. Yes, 433 00:21:24,320 --> 00:21:26,160 Speaker 1: at my core, I do think I'm a saver. I'm 434 00:21:26,160 --> 00:21:30,400 Speaker 1: a organized saver, and the budget helps me get there. 435 00:21:30,840 --> 00:21:32,760 Speaker 1: All right, Well, let me give you my quick breakdown 436 00:21:32,880 --> 00:21:36,440 Speaker 1: my approach to budgeting, how when I do it, how 437 00:21:36,480 --> 00:21:38,200 Speaker 1: I've done it, how Emily and I've done it together, 438 00:21:38,800 --> 00:21:41,120 Speaker 1: because you're more of a free spirit when it comes 439 00:21:41,160 --> 00:21:44,520 Speaker 1: to numbers, and you mentioned going with your going with 440 00:21:44,560 --> 00:21:49,120 Speaker 1: your gut. You think that's how you approach it. Uh, yeah, 441 00:21:49,200 --> 00:21:54,719 Speaker 1: pretty much, so, I'll say. But when we are and Emily, 442 00:21:54,760 --> 00:21:56,399 Speaker 1: it's just like Kate is for you. Emily is a 443 00:21:56,400 --> 00:21:59,560 Speaker 1: great balance for me and she really helps me stick 444 00:21:59,600 --> 00:22:01,760 Speaker 1: to a budge it, look at the numbers, think through, 445 00:22:01,920 --> 00:22:05,560 Speaker 1: especially if we're on a mission on a goal, and 446 00:22:05,560 --> 00:22:07,879 Speaker 1: then how to kind of feel free inside of that. 447 00:22:08,359 --> 00:22:10,240 Speaker 1: And so with the way we approach it. There's a 448 00:22:10,240 --> 00:22:11,840 Speaker 1: bunch of different apps, as we've said, a bunch of 449 00:22:11,840 --> 00:22:14,720 Speaker 1: different websites, a bunch of different formulas that people use. 450 00:22:15,520 --> 00:22:19,640 Speaker 1: I use Mint, the Mint app, Mint dot com. I mean, 451 00:22:19,680 --> 00:22:24,160 Speaker 1: I think it's the most widely used budgeting tool. Yeah. Yeah, 452 00:22:24,160 --> 00:22:25,520 Speaker 1: we we tried it for a while there to see 453 00:22:25,560 --> 00:22:27,320 Speaker 1: if it would work for us. Yeah, I think for us, 454 00:22:27,400 --> 00:22:31,760 Speaker 1: we use Mint specifically as a way to just track 455 00:22:31,800 --> 00:22:34,520 Speaker 1: all of our expenses. So we use credit cards and 456 00:22:34,640 --> 00:22:37,359 Speaker 1: checks for pretty much everything, and like almost no checks anymore. 457 00:22:37,359 --> 00:22:39,239 Speaker 1: It's pretty much all credit cards, right, and get get 458 00:22:39,240 --> 00:22:42,000 Speaker 1: those points, get that catch back, Yeah exactly. And so 459 00:22:42,160 --> 00:22:45,359 Speaker 1: but that can be a problem for people who because 460 00:22:45,400 --> 00:22:49,040 Speaker 1: because credit card doesn't register the same mentally when you 461 00:22:49,080 --> 00:22:51,480 Speaker 1: make a transaction as actually taking cash out of your 462 00:22:51,480 --> 00:22:54,159 Speaker 1: pocket and handing it to somebody. So that's again, if 463 00:22:54,200 --> 00:22:57,679 Speaker 1: you're going to be using plastic, the budgeting really can 464 00:22:57,760 --> 00:23:00,520 Speaker 1: kick in if you're not super frugal. It's really important 465 00:23:00,600 --> 00:23:03,080 Speaker 1: because you could find yourself spending a lot more freely 466 00:23:03,880 --> 00:23:06,439 Speaker 1: using plastic as opposed to cash. I totally ability that 467 00:23:06,520 --> 00:23:09,800 Speaker 1: as far as like the emotional impact, Oh yeah, yeah, 468 00:23:09,840 --> 00:23:11,760 Speaker 1: you just swipe it and forget. I don't you have 469 00:23:11,760 --> 00:23:13,000 Speaker 1: to swipe it in more, you just hand it over 470 00:23:13,359 --> 00:23:15,960 Speaker 1: like or online make it swipes it for me. How 471 00:23:16,000 --> 00:23:17,840 Speaker 1: easy is it to make an online purchase now or 472 00:23:17,880 --> 00:23:20,239 Speaker 1: like Amazon one click or whatever. There's all these kind 473 00:23:20,280 --> 00:23:23,200 Speaker 1: of things that make it so easy, and then two 474 00:23:23,320 --> 00:23:25,159 Speaker 1: days later the things shows up your doorstep and you 475 00:23:25,200 --> 00:23:26,960 Speaker 1: forget you just spent twenty eight dollars on it. You 476 00:23:27,000 --> 00:23:29,040 Speaker 1: forget that you even ordered it. Sometimes, but I feel 477 00:23:29,080 --> 00:23:31,159 Speaker 1: like that's a tendency for people, right especially in today's 478 00:23:31,200 --> 00:23:33,000 Speaker 1: day and age, with easy online ordering, that's just kind 479 00:23:33,000 --> 00:23:36,040 Speaker 1: of goes hand in hand with it, all right. So 480 00:23:36,080 --> 00:23:38,639 Speaker 1: I use Mint and we basically filter all of our 481 00:23:38,640 --> 00:23:41,040 Speaker 1: credit cards in there, and so use it as a 482 00:23:41,160 --> 00:23:44,280 Speaker 1: tracking exactly, and so in an instant I can get 483 00:23:44,320 --> 00:23:47,200 Speaker 1: a snapshot of kind of where we're at for the month, 484 00:23:47,280 --> 00:23:49,280 Speaker 1: you know, up or down. It's just got the cash 485 00:23:49,320 --> 00:23:52,080 Speaker 1: balance first, the credit card how much we owe on 486 00:23:52,080 --> 00:23:54,600 Speaker 1: the credit cards? Right then, obviously we don't care a 487 00:23:54,640 --> 00:23:56,480 Speaker 1: credit card balance, but it just gives me a snapshot 488 00:23:56,560 --> 00:23:58,520 Speaker 1: kind of where things are at, and then on top 489 00:23:58,520 --> 00:24:01,760 Speaker 1: of that weekend at the end every month, go through 490 00:24:01,800 --> 00:24:04,280 Speaker 1: all those transactions. Mint doesn't do a great job of 491 00:24:04,320 --> 00:24:06,240 Speaker 1: categorizing it. Yeah, I was gonna say that was one 492 00:24:06,280 --> 00:24:07,960 Speaker 1: of the things I remember being annoyed with having to 493 00:24:08,080 --> 00:24:11,240 Speaker 1: manually say, no, this actually needs to go here now 494 00:24:11,320 --> 00:24:13,880 Speaker 1: where like the very next time there's a purchase there, 495 00:24:13,880 --> 00:24:15,639 Speaker 1: it needs to go to this other category. It kind 496 00:24:15,640 --> 00:24:18,400 Speaker 1: of bounces back and forth, and so that that can 497 00:24:18,400 --> 00:24:21,800 Speaker 1: be a tough one. Uh We that's why we kind 498 00:24:21,840 --> 00:24:25,480 Speaker 1: of actually go manually through all the transactions and then 499 00:24:25,640 --> 00:24:28,600 Speaker 1: entered into Google sheets and we kind of sit down 500 00:24:28,600 --> 00:24:30,639 Speaker 1: and then we're like, okay, well, did you would you 501 00:24:30,680 --> 00:24:33,399 Speaker 1: buy here for this amount? Because we don't always tell 502 00:24:33,400 --> 00:24:35,400 Speaker 1: each other before we buy something that's ten or twenty bucks, 503 00:24:35,600 --> 00:24:38,400 Speaker 1: so then we can kind of say, okay, you're at 504 00:24:38,560 --> 00:24:40,920 Speaker 1: eighty bucks for this month, and we're at this much 505 00:24:40,920 --> 00:24:44,280 Speaker 1: for groceries. And so we try to sit down once 506 00:24:44,400 --> 00:24:46,680 Speaker 1: or twice a month go through it so we're on 507 00:24:46,720 --> 00:24:48,959 Speaker 1: the same page and kind of see where we're at. 508 00:24:49,400 --> 00:24:52,959 Speaker 1: And that's the easiest, simplest way we found. There's all 509 00:24:53,000 --> 00:24:55,800 Speaker 1: these other I've heard so many people rave about you 510 00:24:55,840 --> 00:24:59,800 Speaker 1: need a budget uh also called wine ab for short. 511 00:25:00,200 --> 00:25:01,720 Speaker 1: So there's a lot of people to rape about that 512 00:25:01,720 --> 00:25:04,719 Speaker 1: budgeting app and website. We've just found that meant for 513 00:25:04,800 --> 00:25:06,960 Speaker 1: us it's simple. We've already kind of got everything flowing 514 00:25:06,960 --> 00:25:09,200 Speaker 1: into there, and then we just use Google sheets to 515 00:25:09,280 --> 00:25:11,399 Speaker 1: kind of track and see where we're at for the 516 00:25:11,440 --> 00:25:15,080 Speaker 1: month and then overall and how we're progressing that years. Okay, 517 00:25:15,080 --> 00:25:16,600 Speaker 1: So then on the Google sheet, is that where you 518 00:25:17,000 --> 00:25:19,119 Speaker 1: set here how much you're you're wanting to spend in 519 00:25:19,160 --> 00:25:22,399 Speaker 1: different categories, So say with groceries, okay, so at the 520 00:25:22,400 --> 00:25:24,120 Speaker 1: beginning of the the month, you've already you already had that set. 521 00:25:24,720 --> 00:25:27,280 Speaker 1: So we know, yeah, we're gonna drop four five dollars 522 00:25:27,280 --> 00:25:30,240 Speaker 1: a month on groceries, and we're gonna do a d 523 00:25:30,359 --> 00:25:33,720 Speaker 1: and fifty on entertainment which includes our date nights right 524 00:25:34,400 --> 00:25:36,479 Speaker 1: every month, or you know, this is how much our 525 00:25:36,480 --> 00:25:39,520 Speaker 1: mortgage is. Obviously the set things like that, and so 526 00:25:39,560 --> 00:25:41,879 Speaker 1: that's kind of how we use it. And then we've 527 00:25:42,359 --> 00:25:44,080 Speaker 1: all right, at the end of the month, we've we've 528 00:25:44,160 --> 00:25:47,080 Speaker 1: got fifty bucks left for going out, or we've got 529 00:25:47,359 --> 00:25:51,720 Speaker 1: five bucks, and so we stay in and make dinner. 530 00:25:52,080 --> 00:25:54,840 Speaker 1: Got you all right, So what about you? What's your approach? 531 00:25:55,640 --> 00:25:59,200 Speaker 1: So okay, so yeah, we we take the more nerdy, 532 00:25:59,320 --> 00:26:05,440 Speaker 1: uh all numbers approach. So basically since the beginning, when 533 00:26:05,440 --> 00:26:08,080 Speaker 1: I first created my first budget, I've always created a 534 00:26:08,200 --> 00:26:10,840 Speaker 1: zero sum budget, so meaning that at the beginning of 535 00:26:10,840 --> 00:26:15,280 Speaker 1: the month, I set the my projected income list out 536 00:26:15,320 --> 00:26:19,119 Speaker 1: all my expenses, and literally at the end of the 537 00:26:19,160 --> 00:26:21,880 Speaker 1: month it should be zero. So your income minoster expenses 538 00:26:21,920 --> 00:26:25,879 Speaker 1: equal zero. And within those expenses includes goals, right, so 539 00:26:25,920 --> 00:26:29,159 Speaker 1: it's like saving for that vacation or that trip in 540 00:26:29,200 --> 00:26:32,320 Speaker 1: addition to investment savings in retirement and things like that, 541 00:26:32,400 --> 00:26:35,240 Speaker 1: I've got those within my I call it. I call 542 00:26:35,240 --> 00:26:37,760 Speaker 1: it an expense, but it's just a way for me 543 00:26:37,840 --> 00:26:40,840 Speaker 1: to say that my goal is this month, to say, 544 00:26:40,960 --> 00:26:44,040 Speaker 1: you know, to put aside towards my roth ira A. 545 00:26:44,560 --> 00:26:47,280 Speaker 1: So those numbers are also included in the expenses. So 546 00:26:47,359 --> 00:26:49,880 Speaker 1: my goal is that at the end of the month 547 00:26:49,880 --> 00:26:53,240 Speaker 1: there's not a single penny. I mean literally, there's not 548 00:26:53,280 --> 00:26:56,960 Speaker 1: a single penny that is unaccounted for because I've essentially 549 00:26:57,160 --> 00:27:00,360 Speaker 1: spent it already at the beginning of the month with 550 00:27:00,400 --> 00:27:02,159 Speaker 1: the you know, with the goals that Kate and I 551 00:27:02,200 --> 00:27:05,639 Speaker 1: have set in mind, and then we you know, we 552 00:27:05,720 --> 00:27:07,960 Speaker 1: move moved numbers around month the month. If we're like, well, 553 00:27:08,000 --> 00:27:10,720 Speaker 1: this is gonna be a month where we're gonna focus 554 00:27:10,720 --> 00:27:13,439 Speaker 1: on this, maybe a little bit more, say, oh, actually 555 00:27:13,400 --> 00:27:16,040 Speaker 1: we're gonna need to ramp up our our savings towards 556 00:27:16,200 --> 00:27:18,480 Speaker 1: vacation because we didn't take into account the beach was 557 00:27:18,480 --> 00:27:20,280 Speaker 1: gonna be more expensive or something like that. I don't know. 558 00:27:20,800 --> 00:27:22,919 Speaker 1: That's the general approach for me and so and the 559 00:27:22,960 --> 00:27:25,520 Speaker 1: tools I used then for that excel, I mean just 560 00:27:25,560 --> 00:27:27,600 Speaker 1: the basic excels, you know, multiple I got two or 561 00:27:27,640 --> 00:27:30,200 Speaker 1: three spreadsheets, and do you just pour over all your 562 00:27:30,320 --> 00:27:36,760 Speaker 1: statements in order to about once a week if I'm 563 00:27:37,000 --> 00:27:39,280 Speaker 1: if I'm diligent and on top of it, once a week, 564 00:27:39,960 --> 00:27:42,640 Speaker 1: I just export stuff and just plug it into plug 565 00:27:42,680 --> 00:27:46,960 Speaker 1: it in our spreadsheets, and then I do manually move them. 566 00:27:47,000 --> 00:27:49,879 Speaker 1: How long is that process when I do it once 567 00:27:49,920 --> 00:27:52,920 Speaker 1: a week, maybe like thirty minutes. Takes me about thirty 568 00:27:52,960 --> 00:27:56,440 Speaker 1: minutes to look over those numbers, plug those into the 569 00:27:56,680 --> 00:28:00,200 Speaker 1: proper categories and then kay, I mean, we don't even 570 00:28:00,200 --> 00:28:04,000 Speaker 1: have meetings anymore. I just send Kate a text, I'll say, 571 00:28:04,320 --> 00:28:07,879 Speaker 1: you know, budget update, dash, dash dash, and then I 572 00:28:07,960 --> 00:28:14,320 Speaker 1: say grocery hundred under entertainment, a hundred, fifty dollars under gas, 573 00:28:14,800 --> 00:28:18,200 Speaker 1: you know, forty dollars under things like that, And that's 574 00:28:18,240 --> 00:28:22,399 Speaker 1: basically what kind of helps dictate and point us in 575 00:28:22,400 --> 00:28:24,679 Speaker 1: the right direction for the rest of the month. All right, 576 00:28:24,720 --> 00:28:27,560 Speaker 1: but let's say this. So let's say, particularly on a 577 00:28:27,640 --> 00:28:30,920 Speaker 1: line NIGHTE and like gas, you're doing zero some budget. 578 00:28:31,119 --> 00:28:34,199 Speaker 1: But if every money should be at the end of 579 00:28:34,200 --> 00:28:37,640 Speaker 1: the month directed somewhere, what happens if you've budgeted seventy 580 00:28:37,640 --> 00:28:40,880 Speaker 1: for gas and you only spent thirty five, or vice versa, 581 00:28:41,000 --> 00:28:42,440 Speaker 1: you aren't on a road trip and you spent more, 582 00:28:43,120 --> 00:28:45,000 Speaker 1: how do you handle that in the budget? And where 583 00:28:45,000 --> 00:28:47,200 Speaker 1: does that money go? Yeah? So does it look like 584 00:28:47,280 --> 00:28:49,840 Speaker 1: so in the first example, if there's additional money left over, 585 00:28:50,240 --> 00:28:52,920 Speaker 1: that's just money that we then it's just additional month 586 00:28:52,920 --> 00:28:55,160 Speaker 1: that's going to go into whatever we decide it's going 587 00:28:55,200 --> 00:28:58,160 Speaker 1: to go into. So typically it's the following month or 588 00:28:58,240 --> 00:29:00,560 Speaker 1: that same month that the same month. Yeah, so, and 589 00:29:00,840 --> 00:29:03,320 Speaker 1: say that specific month we had planned to set aside 590 00:29:03,320 --> 00:29:06,280 Speaker 1: eight hundred dollars to go to a roth Ira, Then 591 00:29:06,360 --> 00:29:10,040 Speaker 1: if we're forty bucks under in gas, well instead of 592 00:29:10,080 --> 00:29:12,040 Speaker 1: eight hundred, it's eight forty that month, and so we 593 00:29:12,080 --> 00:29:14,600 Speaker 1: just kind of make some changes on the fly. And 594 00:29:14,720 --> 00:29:18,480 Speaker 1: obviously sometimes you just have to drive somewhere, right, and 595 00:29:18,520 --> 00:29:22,480 Speaker 1: so sometimes we do go over. But like you mentioned, 596 00:29:22,520 --> 00:29:24,760 Speaker 1: the road trip, well that kind of comes out of vacation, 597 00:29:25,040 --> 00:29:28,240 Speaker 1: and so that's something we've already planned for. We know that, Okay, 598 00:29:28,280 --> 00:29:31,480 Speaker 1: this is gonna include all of our expenses for that trip, 599 00:29:32,040 --> 00:29:34,400 Speaker 1: and so that's that's how we know reconcile it in 600 00:29:34,400 --> 00:29:37,200 Speaker 1: that in that case. All right, So here's another interesting question, 601 00:29:37,200 --> 00:29:39,880 Speaker 1: and there's probably a lot of people listening that are 602 00:29:39,880 --> 00:29:42,400 Speaker 1: in the same position as Matt is. I am a 603 00:29:42,480 --> 00:29:45,800 Speaker 1: regular forty hour week employees somewhere with a paycheck that 604 00:29:45,840 --> 00:29:48,680 Speaker 1: I can count on that looks pretty much the exact 605 00:29:48,720 --> 00:29:53,200 Speaker 1: same every two weeks. But you, sir, have vastly different 606 00:29:53,240 --> 00:29:55,640 Speaker 1: incomes from month to month. So what do you how 607 00:29:55,640 --> 00:29:59,400 Speaker 1: do you budget when you make ten thou one month 608 00:29:59,440 --> 00:30:02,320 Speaker 1: in two thousand in the next. Yeah, so that's when 609 00:30:02,400 --> 00:30:05,400 Speaker 1: margin comes into play. So sort of like you mentioned, 610 00:30:05,440 --> 00:30:09,200 Speaker 1: you're asking about the sort of personal categories with like okay, 611 00:30:09,240 --> 00:30:10,960 Speaker 1: so do you roll over you know, like if you 612 00:30:11,000 --> 00:30:12,880 Speaker 1: don't spend all of your all of your map money 613 00:30:12,920 --> 00:30:15,760 Speaker 1: for the month. And so the my answer to that was, yes, 614 00:30:16,120 --> 00:30:18,640 Speaker 1: the same thing kind of goes. So we have I mean, 615 00:30:18,680 --> 00:30:20,239 Speaker 1: basically we kind of roll it into what we call 616 00:30:20,240 --> 00:30:24,560 Speaker 1: our emergency fund, but we have a more loose, sort 617 00:30:24,560 --> 00:30:27,560 Speaker 1: of liberal emergency fund, and what that acts as is 618 00:30:27,600 --> 00:30:29,680 Speaker 1: our margin. So in the months where we do have 619 00:30:29,760 --> 00:30:31,800 Speaker 1: that additional income, right, so, say like the ten thousand 620 00:30:31,840 --> 00:30:35,160 Speaker 1: dollar month, that additional money, we know that that's a 621 00:30:35,160 --> 00:30:37,440 Speaker 1: fat month. It's not like we're like, oh man, this 622 00:30:37,520 --> 00:30:39,960 Speaker 1: is our life, now, let's get used to spending it all. 623 00:30:40,360 --> 00:30:42,800 Speaker 1: We know that we have to set aside some like 624 00:30:42,840 --> 00:30:45,520 Speaker 1: a good chunk of that for some of the leaner months, 625 00:30:45,640 --> 00:30:48,920 Speaker 1: and so when that happens, we basically stockpile our emergency 626 00:30:48,920 --> 00:30:50,960 Speaker 1: fund a little bit, knowing that there's gonna be some 627 00:30:51,040 --> 00:30:53,680 Speaker 1: leaner months ahead, and that way when those months do 628 00:30:54,640 --> 00:30:56,960 Speaker 1: inevitably come along, we're able to kind of dip into 629 00:30:57,000 --> 00:30:59,440 Speaker 1: that and all that all balances out. It would be 630 00:30:59,560 --> 00:31:02,160 Speaker 1: nice to have a consistent income because it would absolutely 631 00:31:02,160 --> 00:31:06,400 Speaker 1: make budgeting easier. But for us, I mean, I've been 632 00:31:06,400 --> 00:31:09,520 Speaker 1: doing this for for so long now, with ten years. Honestly, 633 00:31:09,520 --> 00:31:11,760 Speaker 1: I don't even really think about it. So here's it's 634 00:31:11,760 --> 00:31:13,680 Speaker 1: something that's always kind of been hard for me when 635 00:31:13,680 --> 00:31:16,000 Speaker 1: it comes to budgeting, because I'm good at like saving 636 00:31:16,080 --> 00:31:19,520 Speaker 1: up money, not spending, not spending a ton, and always 637 00:31:19,920 --> 00:31:23,640 Speaker 1: saving every month and not spending more than we make. 638 00:31:24,400 --> 00:31:27,680 Speaker 1: What happens when and in some I touched on earlier 639 00:31:28,440 --> 00:31:31,360 Speaker 1: make your budget personal for me. We try to allocate 640 00:31:31,440 --> 00:31:36,200 Speaker 1: money to the things that we love. And there's a 641 00:31:36,200 --> 00:31:37,880 Speaker 1: few things that we have said aside, like, for instance, 642 00:31:38,000 --> 00:31:40,400 Speaker 1: I have three things that I'm okay spending more money 643 00:31:40,400 --> 00:31:43,320 Speaker 1: on than probably most people do. And those three things 644 00:31:43,320 --> 00:31:46,320 Speaker 1: are craft beer. Obviously we're drinking a good one now. Uh. 645 00:31:46,440 --> 00:31:49,160 Speaker 1: Folk art. I love folk art, and so I buy 646 00:31:49,160 --> 00:31:52,280 Speaker 1: a piece every year, sometimes two. We Emily and I 647 00:31:52,360 --> 00:31:54,480 Speaker 1: just share a love for folk art and travel. We 648 00:31:54,600 --> 00:31:59,040 Speaker 1: travel usually one domestic and one international every year. We 649 00:31:59,080 --> 00:32:02,960 Speaker 1: try to allocate money for those things. But if there's 650 00:32:02,960 --> 00:32:06,520 Speaker 1: a deal on something, I have this kind of thorn 651 00:32:06,560 --> 00:32:09,640 Speaker 1: in my side that I have to I almost have 652 00:32:09,680 --> 00:32:12,360 Speaker 1: to pull the trigger. And so let's say there's a 653 00:32:12,400 --> 00:32:18,040 Speaker 1: great deal on a trip somewhere where tickets to Barcelona, 654 00:32:18,080 --> 00:32:21,400 Speaker 1: Spain are normally and there's a round trip ticket for 655 00:32:21,400 --> 00:32:24,600 Speaker 1: foreigner and fifty dollars. I just have a built up 656 00:32:24,640 --> 00:32:29,120 Speaker 1: savings can I pull the trigger on it? That's that's 657 00:32:29,120 --> 00:32:31,160 Speaker 1: the thing. I guess. It's it's like a different way 658 00:32:31,200 --> 00:32:35,200 Speaker 1: of like brain compartmentalization. And my brain isn't saying I 659 00:32:35,240 --> 00:32:37,320 Speaker 1: budgeted it out over twelve months. It's saying I put 660 00:32:37,360 --> 00:32:39,959 Speaker 1: all the excess in the savings account and I'm spending 661 00:32:39,960 --> 00:32:41,720 Speaker 1: out of there. That's kind of the way my brain 662 00:32:41,720 --> 00:32:44,520 Speaker 1: thinks about it. Yeah, So I mean, so, yes, we 663 00:32:44,600 --> 00:32:47,080 Speaker 1: try to take advantage of the deal. I'm I'm with you. 664 00:32:47,080 --> 00:32:50,040 Speaker 1: We're not so rigid that when we see a fantastic 665 00:32:50,280 --> 00:32:52,520 Speaker 1: deal or an opportunity to come along that we're like, nope, 666 00:32:52,960 --> 00:32:56,000 Speaker 1: we only were still working towards that, you know. So again, 667 00:32:56,080 --> 00:32:57,840 Speaker 1: like you mentioned, well, what if there's a big purchase, 668 00:32:57,880 --> 00:33:00,160 Speaker 1: and I mentioned how when I when I got like 669 00:33:00,160 --> 00:33:02,360 Speaker 1: a recent bike that I purchased, it took me into 670 00:33:02,360 --> 00:33:05,040 Speaker 1: the red. And but that's so that's still like something 671 00:33:05,080 --> 00:33:07,880 Speaker 1: I'm still slowly kind of building, you know, rebuilding and 672 00:33:07,960 --> 00:33:10,680 Speaker 1: getting back up to zero and then beyond that, trying 673 00:33:10,720 --> 00:33:13,680 Speaker 1: to start saving again to be able to get something 674 00:33:13,680 --> 00:33:15,760 Speaker 1: else on one. So when we see a deal on 675 00:33:15,800 --> 00:33:18,760 Speaker 1: a flight, even though we necessarily may not have all 676 00:33:18,800 --> 00:33:21,320 Speaker 1: of that money saved up for that vacation, it's not 677 00:33:21,360 --> 00:33:24,600 Speaker 1: in the vacation fund in that category exactly. Again, we 678 00:33:24,680 --> 00:33:28,000 Speaker 1: have enough margin in our you know, in our emergency 679 00:33:28,040 --> 00:33:31,000 Speaker 1: fund that we're able that we've stockpiled because we know 680 00:33:31,040 --> 00:33:32,640 Speaker 1: that we've we do that in the you know, the 681 00:33:32,720 --> 00:33:34,240 Speaker 1: in the fatter months, we're able to kind of dip 682 00:33:34,240 --> 00:33:37,200 Speaker 1: into that. So it's not like we're overdrafting our account 683 00:33:37,240 --> 00:33:41,400 Speaker 1: or anything. We're sort of overdrafting that little category. Yeah, 684 00:33:41,480 --> 00:33:44,160 Speaker 1: and and and that category is sort of hurting there 685 00:33:44,160 --> 00:33:45,600 Speaker 1: for a couple of months until we're able to kind 686 00:33:45,600 --> 00:33:49,080 Speaker 1: of rebuild it. But we're never overdrafting. We're never It's 687 00:33:49,120 --> 00:33:51,560 Speaker 1: not like our bank our account bounces ever zero or 688 00:33:52,320 --> 00:33:54,640 Speaker 1: honestly even close to that, because we like to maintain 689 00:33:54,680 --> 00:33:57,600 Speaker 1: a cushion. Yeah. No, I think that's a great way 690 00:33:57,600 --> 00:33:59,959 Speaker 1: to put it. Never going to credit card debt for lifestyle, 691 00:34:00,160 --> 00:34:04,600 Speaker 1: no way. Never over debit your account for lifestyle. If 692 00:34:04,600 --> 00:34:08,440 Speaker 1: this is a decision and you have the savings built 693 00:34:08,520 --> 00:34:11,839 Speaker 1: up to make that choice and pounce on the deal, 694 00:34:12,280 --> 00:34:17,799 Speaker 1: I think it's okay. In moderation with the knowledge that 695 00:34:18,000 --> 00:34:20,440 Speaker 1: you immediately want to start building that back up when 696 00:34:20,440 --> 00:34:21,960 Speaker 1: you get back from your trip or whatever it is, 697 00:34:21,960 --> 00:34:23,680 Speaker 1: if it's the bike that you bought or the trip 698 00:34:23,719 --> 00:34:28,080 Speaker 1: you went on, immediately you start working towards building that 699 00:34:28,120 --> 00:34:32,200 Speaker 1: cushion back up. But if you have that cushion, I 700 00:34:32,239 --> 00:34:34,120 Speaker 1: think you need to be able to give yourself a 701 00:34:34,120 --> 00:34:37,560 Speaker 1: little bit of freedom. I think probably a really important 702 00:34:37,600 --> 00:34:41,120 Speaker 1: caveat for people to hear in that is, if you're 703 00:34:41,160 --> 00:34:44,200 Speaker 1: going to do that, make sure it is for one 704 00:34:44,200 --> 00:34:47,600 Speaker 1: of those personal categories for which you put major importance. 705 00:34:48,520 --> 00:34:51,239 Speaker 1: I think, for instance, let's say you know, we we 706 00:34:51,320 --> 00:34:55,560 Speaker 1: just recently got done with the Christmas shopping season, Black Friday, 707 00:34:55,680 --> 00:34:58,040 Speaker 1: Cyber Monday, blah blah blah blah blah, bah blah blah blah, 708 00:34:58,120 --> 00:35:00,200 Speaker 1: and people like bought a bunch of ship it they 709 00:35:00,239 --> 00:35:03,560 Speaker 1: didn't need because it was a deal. That is where 710 00:35:03,560 --> 00:35:08,080 Speaker 1: you get yourself into trouble is you just bought an 711 00:35:08,080 --> 00:35:10,239 Speaker 1: Amazon kindle in a fire stick and blah blah blah 712 00:35:10,239 --> 00:35:12,560 Speaker 1: blah blah blah, all these things that you had not 713 00:35:12,640 --> 00:35:15,560 Speaker 1: budgeted for I didn't think you needed until the deal 714 00:35:15,560 --> 00:35:18,480 Speaker 1: popped up. And if you're super intelectronics, and that's when 715 00:35:18,480 --> 00:35:20,839 Speaker 1: you're lining up like that's one of your calling cards. Hey, 716 00:35:20,880 --> 00:35:23,239 Speaker 1: that's what I'm super into. That's personal for me, that's 717 00:35:23,320 --> 00:35:25,920 Speaker 1: that's the line out of in my budget. It's okay 718 00:35:25,960 --> 00:35:29,040 Speaker 1: to make that purchase within reason, even if you go over. 719 00:35:29,080 --> 00:35:31,200 Speaker 1: For us, it's travel, right, that's what we're talking about 720 00:35:31,200 --> 00:35:35,680 Speaker 1: our bikes. But if that's your thing, that's okay. You 721 00:35:35,680 --> 00:35:38,480 Speaker 1: you need to want to replenish it quickly, but don't 722 00:35:38,560 --> 00:35:41,400 Speaker 1: do it for something that's not one of those main categories, 723 00:35:41,400 --> 00:35:45,040 Speaker 1: those main things that drives you, because that's what leads 724 00:35:45,080 --> 00:35:47,800 Speaker 1: to the hangover and to the ruination of your budget. 725 00:35:47,800 --> 00:35:50,440 Speaker 1: I feel like if you're pouncing on deals from all 726 00:35:50,440 --> 00:35:52,520 Speaker 1: these other categories that you don't really care about in 727 00:35:52,560 --> 00:35:56,760 Speaker 1: the end, And what you're describing to basically is how 728 00:35:57,480 --> 00:36:01,040 Speaker 1: we approach money in general. Like we're not so by 729 00:36:01,080 --> 00:36:05,279 Speaker 1: the numbers that we're just trying to be rich, Like 730 00:36:05,320 --> 00:36:07,560 Speaker 1: that's not our goal is to amass tons of money. 731 00:36:08,360 --> 00:36:10,920 Speaker 1: One of our goals is to sort of live a 732 00:36:10,960 --> 00:36:14,640 Speaker 1: moderate life where we're spending money, you know, some money 733 00:36:14,680 --> 00:36:17,719 Speaker 1: now we're trying to save, obviously for for the long term, 734 00:36:17,760 --> 00:36:20,279 Speaker 1: so that we have money down the road to to 735 00:36:20,600 --> 00:36:23,440 Speaker 1: either become financially independent on or to retire or buy 736 00:36:23,440 --> 00:36:26,879 Speaker 1: a yacht. Is that your thing you're gonna you're gonna 737 00:36:26,880 --> 00:36:29,160 Speaker 1: be the yacht guy? Could be someday, But couldn't you 738 00:36:29,200 --> 00:36:31,960 Speaker 1: see me with those little sailor hats or whatever if 739 00:36:31,960 --> 00:36:35,480 Speaker 1: somebody else is driving the yacht. Maybe we're trying to 740 00:36:35,520 --> 00:36:38,480 Speaker 1: find ways to focus on the things that matter to 741 00:36:38,560 --> 00:36:42,160 Speaker 1: us now and to also plan ahead so that we're 742 00:36:42,160 --> 00:36:45,480 Speaker 1: not broke down the road. Totally agree with that. Yeah, 743 00:36:45,480 --> 00:36:48,600 Speaker 1: we're not so extreme that we're just only saving now 744 00:36:48,640 --> 00:36:51,319 Speaker 1: and not spending a single dime. That's where I was 745 00:36:51,360 --> 00:36:54,520 Speaker 1: maybe ten years ago. And we're not also obviously not 746 00:36:54,560 --> 00:37:00,120 Speaker 1: advocating a lifestyle where there's just excessive consumption. We're you're 747 00:37:00,160 --> 00:37:03,800 Speaker 1: just making these silly purchases that aren't gonna mean anything 748 00:37:03,840 --> 00:37:05,879 Speaker 1: to you, and even like a couple of days later, 749 00:37:06,120 --> 00:37:07,640 Speaker 1: like you said, where you kind of have the the 750 00:37:07,640 --> 00:37:10,520 Speaker 1: purchase hangover and you're just thinking, man, why did I 751 00:37:10,560 --> 00:37:13,120 Speaker 1: do that? Yeah? Yeah, And I think if you find 752 00:37:13,120 --> 00:37:16,040 Speaker 1: yourself continually going over like that, making purchases that then 753 00:37:16,040 --> 00:37:19,040 Speaker 1: you later regret. There's a couple things that you can 754 00:37:19,080 --> 00:37:21,040 Speaker 1: do to kind of change your mindset. You can change 755 00:37:21,120 --> 00:37:23,680 Speaker 1: some of your habits, some of the ways that you 756 00:37:24,360 --> 00:37:26,840 Speaker 1: shop online, some of the ways that you shop in stores. 757 00:37:27,600 --> 00:37:30,520 Speaker 1: And even if you buy something, you can give yourself 758 00:37:30,560 --> 00:37:33,040 Speaker 1: like a forty eight hour period or something to decide 759 00:37:33,960 --> 00:37:37,799 Speaker 1: without taking the tags off and causing the receipt whether 760 00:37:37,840 --> 00:37:39,120 Speaker 1: you really want to keep it. There's a couple of 761 00:37:39,120 --> 00:37:42,000 Speaker 1: things you can do in your life, yea, to prevent 762 00:37:42,000 --> 00:37:44,560 Speaker 1: yourself from maybe you made the mistake in the heat 763 00:37:44,560 --> 00:37:46,920 Speaker 1: of the moment, but then you go return the item 764 00:37:46,960 --> 00:37:48,920 Speaker 1: if you decide that it doesn't fit your budget and 765 00:37:48,920 --> 00:37:51,280 Speaker 1: it doesn't fit your lifestyle. So you know, you mentioned 766 00:37:51,320 --> 00:37:54,759 Speaker 1: how you guys. Essentially you kind of track all of 767 00:37:54,760 --> 00:37:56,640 Speaker 1: your spending vehemin and then you kind of plug that 768 00:37:56,719 --> 00:37:59,560 Speaker 1: into sheets on the Google sheets. I mean, how do 769 00:37:59,560 --> 00:38:03,839 Speaker 1: you actually go about creating your dollar amounts for your 770 00:38:03,840 --> 00:38:07,000 Speaker 1: different categories, like within your budget? Yeah, well so that 771 00:38:07,160 --> 00:38:09,919 Speaker 1: obviously there are certain items that are fixed like your yeah, 772 00:38:10,000 --> 00:38:14,560 Speaker 1: mortgage right yeah, right, so insurance stuff like that, and 773 00:38:14,600 --> 00:38:19,560 Speaker 1: then the other ones basically started off by looking at 774 00:38:19,760 --> 00:38:22,520 Speaker 1: previous months. Oh hey, how much did we spend on 775 00:38:22,560 --> 00:38:25,640 Speaker 1: groceries last month? Was it? Do do we feel like 776 00:38:25,680 --> 00:38:28,719 Speaker 1: that's normal. Hey, how much do we spend on entertainment? Oh? Hey, 777 00:38:28,760 --> 00:38:30,759 Speaker 1: well we want to do more in this. Can we 778 00:38:30,800 --> 00:38:32,279 Speaker 1: cut down in that a little bit, be a little 779 00:38:32,280 --> 00:38:35,640 Speaker 1: more focused on our entertainment spending so that we can 780 00:38:35,719 --> 00:38:38,360 Speaker 1: add a little more towards the paying off debt bucket 781 00:38:38,440 --> 00:38:40,439 Speaker 1: or whatever. And like I said, we we don't really 782 00:38:40,440 --> 00:38:42,360 Speaker 1: have We just have mortgage. That that's it except for 783 00:38:42,400 --> 00:38:44,239 Speaker 1: this small home equity and that's what we're going after. 784 00:38:44,680 --> 00:38:46,560 Speaker 1: Oh and a little bit emily student loans. So those 785 00:38:46,560 --> 00:38:47,759 Speaker 1: are the two things that we want to we want 786 00:38:47,800 --> 00:38:49,879 Speaker 1: to tackle this year. She's got to knock it out 787 00:38:49,960 --> 00:38:53,239 Speaker 1: like five or six grand left, right, Yeah, No, it's 788 00:38:53,239 --> 00:38:56,000 Speaker 1: so yeah, it's not very much super low interest rate. 789 00:38:56,080 --> 00:38:58,239 Speaker 1: So it's not like we're terribly concerned. We're we're kind 790 00:38:58,239 --> 00:39:00,799 Speaker 1: of like, let's do this. Eighteen is going to be 791 00:39:00,840 --> 00:39:04,520 Speaker 1: the year, just like a bunch of that. Yeah, yeah, 792 00:39:04,560 --> 00:39:07,680 Speaker 1: it's gonna feel so good. Yeah. So it's it's usually 793 00:39:07,760 --> 00:39:12,920 Speaker 1: it's based on previous months and on then Okay, can 794 00:39:12,960 --> 00:39:15,120 Speaker 1: we pinch a little more there so we can breathe 795 00:39:15,120 --> 00:39:19,360 Speaker 1: a little more here, priorities shift a little bit or 796 00:39:20,080 --> 00:39:22,960 Speaker 1: I recently shopped our insurance, so that dropped a little bit, 797 00:39:23,000 --> 00:39:25,239 Speaker 1: so we can decided to put a little bit more 798 00:39:25,239 --> 00:39:28,000 Speaker 1: in this bucket if we want, or save a little more. 799 00:39:28,400 --> 00:39:31,320 Speaker 1: So it's kind of it's kind of that combo of 800 00:39:32,080 --> 00:39:37,000 Speaker 1: history versus where we desire money cultures kind of moving forward. Yeah, 801 00:39:37,080 --> 00:39:39,080 Speaker 1: and I think that So that's I think that's true 802 00:39:39,160 --> 00:39:42,680 Speaker 1: as well for anybody that doesn't have a budget and 803 00:39:42,719 --> 00:39:45,960 Speaker 1: so you're taught, you're saying based on previous months, if 804 00:39:46,000 --> 00:39:48,920 Speaker 1: you've never even done a budget. Ever, that's I think 805 00:39:48,920 --> 00:39:50,320 Speaker 1: that's exactly how you need to start as well. And 806 00:39:50,400 --> 00:39:52,440 Speaker 1: maybe that's what you're saying, right, but yeah, that's how 807 00:39:52,440 --> 00:39:54,720 Speaker 1: we initially came up with the number exactly. So instead 808 00:39:54,719 --> 00:39:57,400 Speaker 1: of like you can think through that like, oh, this 809 00:39:57,440 --> 00:39:59,120 Speaker 1: is what I want to spend or this is what 810 00:39:59,160 --> 00:40:01,960 Speaker 1: I think I'll spend the month on groceries or entertainment 811 00:40:02,080 --> 00:40:05,680 Speaker 1: things like that, like some of the more variable expenses, right, 812 00:40:06,000 --> 00:40:09,920 Speaker 1: the things that you that are kind of more dependent 813 00:40:10,080 --> 00:40:13,360 Speaker 1: on your behavior, Like it's so much more effective to 814 00:40:13,360 --> 00:40:15,600 Speaker 1: look at what you've actually done, because you can think 815 00:40:15,640 --> 00:40:17,600 Speaker 1: all day long that this is what I would like 816 00:40:17,719 --> 00:40:21,040 Speaker 1: it to say, but what's more effective and just honestly 817 00:40:21,080 --> 00:40:23,279 Speaker 1: easier is just to look at what you've done, like, 818 00:40:23,360 --> 00:40:25,880 Speaker 1: let's look at your past, let's look at your patterns, 819 00:40:26,360 --> 00:40:28,280 Speaker 1: and then you can kind of base your numbers around 820 00:40:28,280 --> 00:40:32,080 Speaker 1: that and obviously, hopefully from your first one there you're 821 00:40:32,239 --> 00:40:33,640 Speaker 1: once you have your income and then you've got your 822 00:40:33,680 --> 00:40:37,200 Speaker 1: previous month's expenses, Hopefully you're not spending more than you're 823 00:40:37,200 --> 00:40:40,000 Speaker 1: actually making because then there's going to be some serious 824 00:40:40,560 --> 00:40:44,200 Speaker 1: changes that that need to happen. But step one, just 825 00:40:44,320 --> 00:40:47,480 Speaker 1: do it, you know, make it happen. Like there's never 826 00:40:47,520 --> 00:40:49,520 Speaker 1: gonna be a perfect month, because every month is going 827 00:40:49,520 --> 00:40:51,759 Speaker 1: to be different, Like there's always gonna be something that 828 00:40:51,760 --> 00:40:55,120 Speaker 1: comes up that you're gonna think, oh, but this isn't 829 00:40:55,160 --> 00:40:56,400 Speaker 1: something that I'm going to have to deal with all 830 00:40:56,440 --> 00:40:58,760 Speaker 1: the time. Well, there's always gonna be something, So just start, 831 00:40:59,400 --> 00:41:02,520 Speaker 1: you know, starting moving forward, put the numbers down, start 832 00:41:02,560 --> 00:41:06,600 Speaker 1: tracking those expenses, and then and checking in with it 833 00:41:06,640 --> 00:41:09,560 Speaker 1: as well. For us, it doesn't do us very very 834 00:41:09,600 --> 00:41:12,160 Speaker 1: much good if we are if we wait till the 835 00:41:12,200 --> 00:41:14,399 Speaker 1: very end of the month before we look at where 836 00:41:14,400 --> 00:41:16,520 Speaker 1: we've done, it's it's more of a sort of oh, 837 00:41:16,640 --> 00:41:19,879 Speaker 1: how did we do this month? As opposed to how 838 00:41:19,920 --> 00:41:23,279 Speaker 1: are we doing. How can we modify our behavior to 839 00:41:23,360 --> 00:41:25,800 Speaker 1: make sure that we're sticking sticking to our goals and 840 00:41:25,840 --> 00:41:29,040 Speaker 1: staying on track to what we want to do. Yeah, 841 00:41:29,040 --> 00:41:31,319 Speaker 1: so there's there's two things I want to say to that. One. 842 00:41:31,400 --> 00:41:34,080 Speaker 1: I think it's probably like you said, it's really important 843 00:41:34,160 --> 00:41:38,319 Speaker 1: to do a check in. Maybe I mean every week 844 00:41:38,360 --> 00:41:40,960 Speaker 1: would be ideal, but most honestly, we don't. I feel 845 00:41:40,960 --> 00:41:43,480 Speaker 1: like we kind of do it every ten days. You 846 00:41:43,560 --> 00:41:45,279 Speaker 1: do it every two weeks, right like middle of the month, 847 00:41:45,360 --> 00:41:47,000 Speaker 1: end of the month. That's that's probably a great way 848 00:41:47,040 --> 00:41:49,600 Speaker 1: to do it that way. If you're by yourself or 849 00:41:49,640 --> 00:41:53,200 Speaker 1: with somebody else, you guys can update each other, or 850 00:41:53,280 --> 00:41:56,359 Speaker 1: you can just be updated about your individual budget. But 851 00:41:56,760 --> 00:41:59,080 Speaker 1: being able to look at it twice a month probably 852 00:41:59,080 --> 00:42:01,520 Speaker 1: the most helpful way to do it, and better looking 853 00:42:01,560 --> 00:42:04,799 Speaker 1: at it, you know, zero times a month, that's for sure, right, Right, 854 00:42:04,880 --> 00:42:07,439 Speaker 1: Like anything that anybody does is going to be better 855 00:42:07,719 --> 00:42:09,960 Speaker 1: if it's something that you haven't done before. Right. So, 856 00:42:10,120 --> 00:42:11,680 Speaker 1: just as long as you're moving in the right direction, man, 857 00:42:11,719 --> 00:42:14,279 Speaker 1: I'm happy, and we'll probably take you longer at the 858 00:42:14,360 --> 00:42:17,080 Speaker 1: very beginning to Yeah, you know, and but but now 859 00:42:17,080 --> 00:42:21,520 Speaker 1: that you're kind of budget master, thirty minutes every ten days. 860 00:42:21,840 --> 00:42:24,719 Speaker 1: It's not that bad, but it might take you longer 861 00:42:24,880 --> 00:42:26,840 Speaker 1: and you might need to set aside one night of 862 00:42:26,840 --> 00:42:29,359 Speaker 1: the week or one night every other week where you're like, 863 00:42:29,440 --> 00:42:32,359 Speaker 1: I'm not watching Netflix, I'm not doing anything. I'm I'm 864 00:42:32,440 --> 00:42:35,279 Speaker 1: checking my budget out. And one of the other part 865 00:42:35,280 --> 00:42:38,680 Speaker 1: of being an adult, right right, just not watching TV 866 00:42:38,840 --> 00:42:40,520 Speaker 1: and instead doing the things that you don't really want 867 00:42:40,520 --> 00:42:44,040 Speaker 1: to do. Then someone's gotta do it. Yeah, it's the 868 00:42:44,120 --> 00:42:46,879 Speaker 1: kind of adult stuff that sucks. Yeah, honestly I say 869 00:42:46,920 --> 00:42:49,080 Speaker 1: it sucks, but in reality, I kind of when I 870 00:42:49,120 --> 00:42:51,400 Speaker 1: sit down and put on some music and start plugging 871 00:42:51,400 --> 00:42:53,160 Speaker 1: in some numbers and seeing where we're at, I know 872 00:42:53,280 --> 00:42:56,880 Speaker 1: you love it. Oh man, that's that's put on some 873 00:42:56,920 --> 00:43:00,400 Speaker 1: slow jams and uh start start getting in with the numbers. 874 00:43:00,400 --> 00:43:02,440 Speaker 1: There one other thing I want to say too, I 875 00:43:02,440 --> 00:43:05,600 Speaker 1: think it's really helpful to have kind of like a 876 00:43:05,640 --> 00:43:09,480 Speaker 1: big goal in mind with your budget. And depending on 877 00:43:09,560 --> 00:43:11,439 Speaker 1: what phase you're in, where you're at in your life 878 00:43:11,480 --> 00:43:13,319 Speaker 1: and where you're at with your debt levels, it could 879 00:43:13,360 --> 00:43:16,399 Speaker 1: be something different. But for Emily and I this next year, 880 00:43:16,440 --> 00:43:19,479 Speaker 1: like I said, we want to kill that home equity line. 881 00:43:19,560 --> 00:43:21,560 Speaker 1: That's it's not that big even, but and then we 882 00:43:21,560 --> 00:43:23,600 Speaker 1: want to kill the rest of our student loans. And 883 00:43:23,640 --> 00:43:26,440 Speaker 1: if we can do those two things, how good are 884 00:43:26,440 --> 00:43:28,080 Speaker 1: we going to feel at the end of it. And So, 885 00:43:28,120 --> 00:43:32,520 Speaker 1: wherever you're at, whether it's eliminating student loans or another 886 00:43:32,560 --> 00:43:35,279 Speaker 1: debt in your life, or whether you know what you're 887 00:43:35,280 --> 00:43:37,480 Speaker 1: doing pretty good with debt and you just want to 888 00:43:37,840 --> 00:43:39,360 Speaker 1: you want to be able to take an awesome vacation 889 00:43:39,400 --> 00:43:41,160 Speaker 1: to Europe, or you want to stay it for that 890 00:43:41,200 --> 00:43:43,080 Speaker 1: new bike, whatever it is. If you can have a 891 00:43:43,080 --> 00:43:47,440 Speaker 1: big goal in plan, they can help keep you focused 892 00:43:47,760 --> 00:43:49,200 Speaker 1: and no matter where you're at, you can come up 893 00:43:49,239 --> 00:43:51,879 Speaker 1: with that big goal this year. Hey, I'm gonna set 894 00:43:51,880 --> 00:43:57,000 Speaker 1: this goal for myself and that's gonna help me stay 895 00:43:57,080 --> 00:44:00,239 Speaker 1: focused throughout the year. Without Without that, it's hard to 896 00:44:00,239 --> 00:44:02,520 Speaker 1: stay focused. Absolutely. Yeah, that's as sort of the why 897 00:44:02,520 --> 00:44:04,920 Speaker 1: am I doing this? Right? Yeah? Yeah, totally. The budget 898 00:44:04,960 --> 00:44:08,080 Speaker 1: is there as sort of a tool, like right, it's 899 00:44:08,120 --> 00:44:10,440 Speaker 1: it's like a month a month. This is like boots 900 00:44:10,440 --> 00:44:13,200 Speaker 1: on the ground, like getting kind of down and dirty 901 00:44:13,239 --> 00:44:16,399 Speaker 1: with it. But it's easy to kind of get lost 902 00:44:16,480 --> 00:44:18,719 Speaker 1: into why am I even doing this? Like just let 903 00:44:18,760 --> 00:44:20,640 Speaker 1: me just do what I want to do. But then 904 00:44:20,680 --> 00:44:22,319 Speaker 1: if you're able to step back and sort of look 905 00:44:22,360 --> 00:44:24,279 Speaker 1: at it for maybe, you know, maybe for a lot 906 00:44:24,320 --> 00:44:25,960 Speaker 1: of a lot of folks. Yeah, it's the year, like 907 00:44:25,960 --> 00:44:28,000 Speaker 1: what do I want to accomplish this year? And having 908 00:44:28,040 --> 00:44:30,319 Speaker 1: goals like that, then you can say, oh, well, this 909 00:44:30,360 --> 00:44:31,680 Speaker 1: is why I'm doing this because I know that if 910 00:44:31,719 --> 00:44:35,000 Speaker 1: I set aside a thousand bucks every month, we'll shoot 911 00:44:35,080 --> 00:44:36,960 Speaker 1: I can do a lot with twelve grand by the 912 00:44:37,040 --> 00:44:38,320 Speaker 1: end of the year. Like, think of the stuff I 913 00:44:38,320 --> 00:44:41,080 Speaker 1: could either pay off or think of the you know, 914 00:44:41,239 --> 00:44:43,440 Speaker 1: how much more I can put towards retirement or you know, 915 00:44:43,520 --> 00:44:46,560 Speaker 1: investment or in another rental property like you mentioned earlier. 916 00:44:47,160 --> 00:44:49,920 Speaker 1: That's the kind of stuff that when you get to 917 00:44:50,000 --> 00:44:53,160 Speaker 1: the end of the year, you're stoked about because you 918 00:44:53,200 --> 00:44:56,759 Speaker 1: know that you've set these every month, you've set these 919 00:44:56,800 --> 00:45:00,319 Speaker 1: goals with you know, within your budget to achieve. Yeah, 920 00:45:00,360 --> 00:45:03,480 Speaker 1: and it might not be the sexiest goal. Somebody's goal 921 00:45:03,560 --> 00:45:06,880 Speaker 1: might be a freaking trip of the Galapagos Islands and 922 00:45:07,000 --> 00:45:09,520 Speaker 1: swimming with turtles. Yeah, that's that's nice and that's cool. 923 00:45:09,960 --> 00:45:13,319 Speaker 1: But yours might just be to have an emergency fund 924 00:45:13,320 --> 00:45:15,680 Speaker 1: because you don't have one yet. Yeah, having some more 925 00:45:15,719 --> 00:45:18,200 Speaker 1: margin in your life that allows you to take advantage of, 926 00:45:18,320 --> 00:45:20,279 Speaker 1: say some of these deals that pop up, or just 927 00:45:20,320 --> 00:45:22,040 Speaker 1: to not be stressed, you know, to to know that 928 00:45:22,040 --> 00:45:25,920 Speaker 1: you're not living paycheck to paycheck. I think for a 929 00:45:25,960 --> 00:45:29,719 Speaker 1: ton of people would feel amazing. I know it would 930 00:45:29,719 --> 00:45:31,640 Speaker 1: feel like I mean, I've talked with folks and I 931 00:45:31,680 --> 00:45:34,879 Speaker 1: know that having that sort of hanging over them where 932 00:45:34,880 --> 00:45:38,160 Speaker 1: they know that if they don't get paid, they don't 933 00:45:38,160 --> 00:45:41,360 Speaker 1: get their next check. All of a sudden, there upside 934 00:45:41,360 --> 00:45:43,359 Speaker 1: down on stuff, and and in a world of hurt. 935 00:45:44,239 --> 00:45:47,680 Speaker 1: You can't make unrealistic, crazy budgets, and you can't make 936 00:45:47,760 --> 00:45:49,640 Speaker 1: changes for a month to month that are huge, like 937 00:45:49,680 --> 00:45:51,360 Speaker 1: you just need to make these you know, these slight 938 00:45:51,400 --> 00:45:54,000 Speaker 1: tweaks and these slight changes to where you know that 939 00:45:54,440 --> 00:45:57,040 Speaker 1: if your goal is to say, save more, and you 940 00:45:57,120 --> 00:45:58,480 Speaker 1: kind of want to tighten the beat a little bit 941 00:45:58,480 --> 00:46:01,440 Speaker 1: on some other categories, make make sure you make small changes. 942 00:46:02,400 --> 00:46:04,319 Speaker 1: First of all, once you base your budget on your 943 00:46:04,320 --> 00:46:07,680 Speaker 1: previous most expenses, like that should be pretty dang realistic. 944 00:46:07,719 --> 00:46:09,920 Speaker 1: And from there I think you should most definitely be 945 00:46:10,000 --> 00:46:12,920 Speaker 1: able to make slight you know, these these small changes 946 00:46:12,960 --> 00:46:15,760 Speaker 1: and tweaks too, to bring about the changes and goals 947 00:46:15,800 --> 00:46:18,160 Speaker 1: that you're trying trying to achieve. There might be some 948 00:46:18,200 --> 00:46:20,959 Speaker 1: really big changes that you haven't considered. Maybe you think 949 00:46:21,000 --> 00:46:24,160 Speaker 1: that this line item in your budget for maybe you 950 00:46:24,160 --> 00:46:27,279 Speaker 1: haven't shopped your insurance in a while. I think there's 951 00:46:27,440 --> 00:46:29,719 Speaker 1: there might be some big moves that you can make 952 00:46:29,960 --> 00:46:33,040 Speaker 1: in that budget that you just haven't considered to help 953 00:46:33,120 --> 00:46:37,040 Speaker 1: you make the other line items, and again, look up, 954 00:46:37,200 --> 00:46:39,160 Speaker 1: make it personal, look back to your goals. What's your 955 00:46:39,160 --> 00:46:41,320 Speaker 1: what are your goals? If you don't care about driving 956 00:46:41,360 --> 00:46:45,439 Speaker 1: a fancy car, sell your two thousand twelve vehicle, riding 957 00:46:45,480 --> 00:46:48,320 Speaker 1: a two thousand two vehicle, and save a bunch of 958 00:46:48,400 --> 00:46:53,600 Speaker 1: money on insurance and on taxes, and start changing some 959 00:46:53,680 --> 00:46:56,120 Speaker 1: of those things, some of those bigger things, bigger picture 960 00:46:56,120 --> 00:46:59,279 Speaker 1: of things that are actually taking a big chunk out 961 00:46:59,320 --> 00:47:01,879 Speaker 1: of your monthly budget it and that can help you 962 00:47:02,040 --> 00:47:04,520 Speaker 1: get your budget in line. I think if you find 963 00:47:04,560 --> 00:47:07,280 Speaker 1: yourself butting up against it or going over every month 964 00:47:08,160 --> 00:47:10,759 Speaker 1: because it's not worth the stress of not being able 965 00:47:10,840 --> 00:47:13,359 Speaker 1: to meet your budget, because you own things that are 966 00:47:13,360 --> 00:47:15,839 Speaker 1: too expensive or aren't worth it to you, that just 967 00:47:15,920 --> 00:47:18,359 Speaker 1: don't provide the value, look at some of those things. 968 00:47:18,440 --> 00:47:22,440 Speaker 1: Maybe in your life that are a big, outgoing item 969 00:47:22,480 --> 00:47:25,040 Speaker 1: that doesn't meet your value. Maybe you're paying too much 970 00:47:25,040 --> 00:47:29,439 Speaker 1: on rent because you two people living in a square 971 00:47:29,440 --> 00:47:32,520 Speaker 1: foot house. Maybe you can downsize living an eight hundred 972 00:47:32,560 --> 00:47:36,359 Speaker 1: square foot house, save yourself six dollars a month. Your 973 00:47:36,400 --> 00:47:38,719 Speaker 1: budget becomes a whole lot easier to meet. There's tons 974 00:47:38,760 --> 00:47:41,680 Speaker 1: of different tactics, right and like ways to get creative 975 00:47:41,719 --> 00:47:46,400 Speaker 1: about either bringing in more money or cutting your expenses. 976 00:47:46,880 --> 00:47:49,680 Speaker 1: But if you don't have a budget to know what 977 00:47:49,719 --> 00:47:51,759 Speaker 1: you're spending on things, you've got no clue to what 978 00:47:51,760 --> 00:47:55,520 Speaker 1: what what even to make changes on. And so to me, 979 00:47:55,680 --> 00:47:58,239 Speaker 1: that's the biggest value that a budget brings about is 980 00:47:58,280 --> 00:48:01,840 Speaker 1: that it it's the formation. I think it's one of 981 00:48:01,880 --> 00:48:04,279 Speaker 1: the things that you're sitting down. It should reflect those 982 00:48:04,320 --> 00:48:07,279 Speaker 1: primary values. And if it doesn't, that's when you start 983 00:48:07,280 --> 00:48:09,760 Speaker 1: making changes and you start cutting things, You start shopping 984 00:48:09,760 --> 00:48:14,960 Speaker 1: things around, start making different buying decisions, and you re 985 00:48:15,040 --> 00:48:18,200 Speaker 1: prioritize because you can take that trip next year if 986 00:48:18,239 --> 00:48:20,240 Speaker 1: you really want to, if that's something you care about, 987 00:48:20,480 --> 00:48:22,600 Speaker 1: if you budget for it and you can do it. Yeah, 988 00:48:22,640 --> 00:48:25,480 Speaker 1: folks say that, like there's so many things in life 989 00:48:25,520 --> 00:48:27,839 Speaker 1: where folks are like, oh, I can't afford that. Well, 990 00:48:27,880 --> 00:48:31,879 Speaker 1: it's like, well, you could afford that if you if 991 00:48:31,920 --> 00:48:34,919 Speaker 1: that was something you valued. So for instance, that trip 992 00:48:35,000 --> 00:48:38,680 Speaker 1: or travel or other or saving for the future, saving 993 00:48:38,680 --> 00:48:41,919 Speaker 1: for retirement, these are things that you could afford to do, 994 00:48:42,640 --> 00:48:47,080 Speaker 1: but maybe instead you value something else you value, you know, 995 00:48:47,120 --> 00:48:48,799 Speaker 1: hanging out with your friends and going out Like there's 996 00:48:48,840 --> 00:48:51,000 Speaker 1: nothing wrong with that, but it's it's just kind of 997 00:48:51,040 --> 00:48:54,399 Speaker 1: being honest with yourself and paying attention to what you're 998 00:48:54,400 --> 00:48:56,760 Speaker 1: actually doing with your money. Right. Yeah. My friend Paula 999 00:48:56,880 --> 00:48:59,560 Speaker 1: has a podcast called Afford Anything, and she says you 1000 00:48:59,560 --> 00:49:03,279 Speaker 1: can ord anything, but not everything. And one of the 1001 00:49:03,320 --> 00:49:05,279 Speaker 1: things she talked about was she went on a three 1002 00:49:05,320 --> 00:49:07,799 Speaker 1: month trip I think the Indonesia or something like that, 1003 00:49:07,840 --> 00:49:09,759 Speaker 1: and everyone was like, how how can you afford to that? 1004 00:49:09,760 --> 00:49:12,000 Speaker 1: That's crazy? And I think it. I don't remember how 1005 00:49:12,080 --> 00:49:13,719 Speaker 1: much it cost her, but it was five or six 1006 00:49:13,719 --> 00:49:16,360 Speaker 1: thousand dollars or something like that for three months in Indonesia. 1007 00:49:17,160 --> 00:49:21,239 Speaker 1: And she's like, why does no one question when Joe 1008 00:49:21,280 --> 00:49:24,360 Speaker 1: at your work buys a twenty six dollar hunday but 1009 00:49:24,440 --> 00:49:28,200 Speaker 1: everyone thinks I'm ridiculous for taking three months and drop 1010 00:49:28,239 --> 00:49:30,120 Speaker 1: in sixth grand to go to Indonesia, and I think 1011 00:49:30,120 --> 00:49:34,480 Speaker 1: that's exactly that's exactly correct, and so many people they 1012 00:49:34,520 --> 00:49:36,800 Speaker 1: think it's insane and that nobody can do that, nobody 1013 00:49:36,800 --> 00:49:39,840 Speaker 1: can afford that. It's because you don't prioritize it. Because 1014 00:49:39,960 --> 00:49:45,480 Speaker 1: you don't because you prioritize when, really does it align 1015 00:49:45,480 --> 00:49:47,759 Speaker 1: with your values? And it's okay if it does, but 1016 00:49:47,880 --> 00:49:50,719 Speaker 1: does it align with your values? Constantly be questioning that? 1017 00:49:51,000 --> 00:49:53,360 Speaker 1: And I think that will help make the budget process. 1018 00:49:53,640 --> 00:49:56,320 Speaker 1: Having that end goal in mind and wanting your budget 1019 00:49:56,320 --> 00:49:59,200 Speaker 1: to reflect your values will help make it personal and 1020 00:49:59,280 --> 00:50:01,080 Speaker 1: help make it something that you can actually stick to 1021 00:50:01,719 --> 00:50:05,879 Speaker 1: and not feel like deprivation. Yeah. Absolutely, all right, Matt, 1022 00:50:05,960 --> 00:50:09,680 Speaker 1: let's talk about the beer. So obviously the podcast is poor, 1023 00:50:09,760 --> 00:50:12,920 Speaker 1: not poor. We poured a beer earlier. It was Avery 1024 00:50:12,960 --> 00:50:18,680 Speaker 1: Brewing Company Tweak a uh stout with coffee aged bourbon barrels. 1025 00:50:19,480 --> 00:50:22,600 Speaker 1: It's sixteen percent, so we might be feeling it a 1026 00:50:22,640 --> 00:50:24,920 Speaker 1: slight amount at the end of this podcast. What's your 1027 00:50:24,960 --> 00:50:30,439 Speaker 1: take on the beer? Very delicious, incredibly well balanced. It's 1028 00:50:30,440 --> 00:50:34,320 Speaker 1: a little bit sweeter, which I like. Yeah, it is sweet, 1029 00:50:34,320 --> 00:50:36,200 Speaker 1: a good sweet, not like a fake sweet. It's got 1030 00:50:36,200 --> 00:50:39,080 Speaker 1: this real nice like bourbon sweetness. It's like real. It 1031 00:50:39,160 --> 00:50:41,839 Speaker 1: tastes like real coffee with like a little bit of 1032 00:50:42,360 --> 00:50:44,320 Speaker 1: I don't want to say maple. It's not like maple syrup, 1033 00:50:44,360 --> 00:50:47,160 Speaker 1: but there's definitely like a sweet oakness to it totally, 1034 00:50:48,239 --> 00:50:51,080 Speaker 1: and it's just, yeah, it goes down really smooth for 1035 00:50:51,160 --> 00:50:53,319 Speaker 1: sixty So I picked this up when I was in 1036 00:50:53,600 --> 00:50:55,640 Speaker 1: South Carolina. I was in Greenville. I was that at 1037 00:50:55,640 --> 00:50:57,360 Speaker 1: the local store there and I saw it on the shelf. 1038 00:50:58,239 --> 00:50:59,839 Speaker 1: You can't get the stuff here, man, Yeah, you can't 1039 00:50:59,840 --> 00:51:02,640 Speaker 1: get it. Can't get it in Georgia. And next time 1040 00:51:02,680 --> 00:51:04,160 Speaker 1: I'm out there, I'm going to pick up a few 1041 00:51:04,160 --> 00:51:06,000 Speaker 1: more of those, that's for sure. So yeah, I would 1042 00:51:06,000 --> 00:51:09,320 Speaker 1: recommend picking up if you see these in your local 1043 00:51:09,480 --> 00:51:13,439 Speaker 1: package store, pick up an avery Tweak. It's a fantastic beer. 1044 00:51:13,520 --> 00:51:15,200 Speaker 1: Still one of your one of your favorite stops. Ever. 1045 00:51:15,200 --> 00:51:17,319 Speaker 1: Do you think I think it's up there? I think 1046 00:51:17,400 --> 00:51:20,839 Speaker 1: it's probably a touch sweet for my favorite. I prefer 1047 00:51:20,960 --> 00:51:24,320 Speaker 1: just a little more like dark chocolate and uh, some 1048 00:51:24,400 --> 00:51:26,480 Speaker 1: more bitter notes. Maybe some more bitter notes going on. 1049 00:51:26,520 --> 00:51:28,920 Speaker 1: But it's really good and the coffee really balances it 1050 00:51:28,920 --> 00:51:31,719 Speaker 1: out and gives a little bit of that bitterness. I'm 1051 00:51:31,760 --> 00:51:33,560 Speaker 1: a I'm a huge fan, and it's it's pretty light 1052 00:51:33,600 --> 00:51:35,440 Speaker 1: on the coffee. Huh, yeah, it could, it could. I 1053 00:51:35,680 --> 00:51:37,399 Speaker 1: feel like maybe in the years past there's been more 1054 00:51:38,080 --> 00:51:40,120 Speaker 1: And then I thought about that, but I think so. 1055 00:51:40,120 --> 00:51:42,040 Speaker 1: So I think tweaks of beer they make every year 1056 00:51:42,080 --> 00:51:44,239 Speaker 1: and it changes every year, and so maybe this year not. 1057 00:51:45,120 --> 00:51:47,120 Speaker 1: It's like a little chillier, you know, a little sweeter. 1058 00:51:47,280 --> 00:51:49,640 Speaker 1: It's like a like a like a caramel cube or 1059 00:51:49,680 --> 00:51:52,000 Speaker 1: something in my mouth. And that's totally how you know 1060 00:51:52,080 --> 00:51:53,640 Speaker 1: someone's a beer nerd. By the way, too, if they 1061 00:51:53,640 --> 00:51:56,120 Speaker 1: start comparing a beer to the beer of beers past. 1062 00:51:56,239 --> 00:52:01,560 Speaker 1: So we we definitely hit that we're complete beer nerds. Right, 1063 00:52:01,600 --> 00:52:04,839 Speaker 1: So that beer was fantastic. Let's wrap up on budgeting, Matt, 1064 00:52:05,520 --> 00:52:08,120 Speaker 1: what are the main takeaways for people if they just 1065 00:52:08,200 --> 00:52:11,160 Speaker 1: want it budgets in thirty seconds? Well, and for the 1066 00:52:11,200 --> 00:52:14,680 Speaker 1: first thing, budgets are just a tool. They're not some 1067 00:52:15,080 --> 00:52:17,480 Speaker 1: sort of weird cult that you're going to join. All 1068 00:52:17,480 --> 00:52:19,960 Speaker 1: it is is you saying that this is what we're 1069 00:52:20,000 --> 00:52:23,960 Speaker 1: gonna spend this month and deciding that before you actually 1070 00:52:24,000 --> 00:52:26,359 Speaker 1: spend the money. It's having a plan. That's step one, 1071 00:52:27,040 --> 00:52:28,400 Speaker 1: and you know what, we have a plane in almost 1072 00:52:28,440 --> 00:52:31,280 Speaker 1: everything in life. Don't be afraid. Plans aren't bad. Budgets 1073 00:52:31,280 --> 00:52:34,040 Speaker 1: you're scary. Call it your money plan. Okay, maybe that's easier. 1074 00:52:35,400 --> 00:52:38,400 Speaker 1: No budgets. Instead, we're gonna have a plan for our money. Yep, yeah, 1075 00:52:38,760 --> 00:52:41,279 Speaker 1: it's it's it's a budget. And use the approach that's 1076 00:52:41,280 --> 00:52:43,160 Speaker 1: the most most comfortable to you. Test out a couple. 1077 00:52:43,400 --> 00:52:47,080 Speaker 1: Don't be bound by the medium. And sometimes maybe it's 1078 00:52:47,080 --> 00:52:49,279 Speaker 1: just paper and pencil, right, like I mean, if if, 1079 00:52:49,320 --> 00:52:52,080 Speaker 1: if you want to go that straightforward and not be 1080 00:52:52,160 --> 00:52:54,920 Speaker 1: distracted by some of the other aspects of the applications 1081 00:52:54,920 --> 00:52:57,160 Speaker 1: that are out there. Man, just a pad and paper 1082 00:52:57,239 --> 00:52:59,440 Speaker 1: is all you need, Like, you don't need all these 1083 00:52:59,480 --> 00:53:02,960 Speaker 1: other tools to to make it work. But essentially, start 1084 00:53:03,000 --> 00:53:06,279 Speaker 1: with your income, list out your expenses and your your 1085 00:53:06,280 --> 00:53:09,440 Speaker 1: goals and what you want to spend on different categories 1086 00:53:09,480 --> 00:53:12,640 Speaker 1: for that month, and then track it. Yeah, track it. 1087 00:53:12,840 --> 00:53:14,839 Speaker 1: And then if you see yourself starting to get get 1088 00:53:14,880 --> 00:53:19,399 Speaker 1: too high and say groceries, well maybe not get the 1089 00:53:19,560 --> 00:53:24,719 Speaker 1: organic avocado instead, you could you know, dive towards of 1090 00:53:24,719 --> 00:53:26,480 Speaker 1: peanut butter and jelly or something I don't know, like 1091 00:53:26,520 --> 00:53:28,520 Speaker 1: whatever it takes for you to to to keep your 1092 00:53:28,520 --> 00:53:31,080 Speaker 1: groceries if you've got to eat Ramin and PBNJ for 1093 00:53:31,080 --> 00:53:32,600 Speaker 1: the last four days of the month to meet your 1094 00:53:32,600 --> 00:53:35,440 Speaker 1: budgets to nothing wrong with that. You know and always 1095 00:53:35,440 --> 00:53:37,480 Speaker 1: have that big goal in mind, because I think that 1096 00:53:37,480 --> 00:53:40,560 Speaker 1: that so much helps the motivation and the stick stick 1097 00:53:40,600 --> 00:53:43,359 Speaker 1: tuitiveness of a budget if you can keep that big 1098 00:53:43,400 --> 00:53:45,920 Speaker 1: goal in mind in front of your face all the time. 1099 00:53:46,520 --> 00:53:49,120 Speaker 1: This is what I'm aiming for, and it's something that 1100 00:53:49,120 --> 00:53:52,799 Speaker 1: really matters to you, that helps the budget stick and 1101 00:53:52,920 --> 00:53:55,760 Speaker 1: helps it not to feel quite as much like the drain. 1102 00:53:56,160 --> 00:53:58,520 Speaker 1: Thanks so much everyone for listening. Our home on the 1103 00:53:58,520 --> 00:54:01,319 Speaker 1: web is how to Money com Check it out. We'll 1104 00:54:01,320 --> 00:54:03,880 Speaker 1: have our shown us up there for you. Yeah, and 1105 00:54:04,120 --> 00:54:06,800 Speaker 1: don't forget to hit the subscribe button wherever you're listening 1106 00:54:06,800 --> 00:54:09,560 Speaker 1: to your podcast. We'd really appreciate it. Our buddy. Until 1107 00:54:09,600 --> 00:54:11,680 Speaker 1: next time, Best Friends Out, Best Friends Out.