1 00:00:00,560 --> 00:00:06,480 Speaker 1: Budgeting is boring, right, It's all spreadsheets, hardmaths, and one 2 00:00:06,559 --> 00:00:10,240 Speaker 1: hundred reasons you shouldn't go out for brunch anymore. But 3 00:00:10,400 --> 00:00:14,160 Speaker 1: for She's on the Money founder Victoria Divine, budgets are 4 00:00:14,360 --> 00:00:18,840 Speaker 1: anything but boring. Victoria's She's on the Money podcast gets 5 00:00:18,920 --> 00:00:22,319 Speaker 1: over one million downloads every month and she's built a 6 00:00:22,360 --> 00:00:26,680 Speaker 1: Facebook community of over one hundred and seventy thousand members. 7 00:00:27,320 --> 00:00:30,120 Speaker 1: So why do we need to let go of the 8 00:00:30,200 --> 00:00:34,839 Speaker 1: idea of using budgets purely as a restriction tool? And 9 00:00:34,840 --> 00:00:37,720 Speaker 1: why does Victoria treat her budgets as an extension of 10 00:00:37,760 --> 00:00:42,600 Speaker 1: her personality? And why do we need to rely less 11 00:00:42,720 --> 00:00:50,879 Speaker 1: on technology when it comes to budgeting. My name is 12 00:00:50,920 --> 00:00:54,440 Speaker 1: doctor Amantha Imber. I'm an organizational psychologist and the founder 13 00:00:54,480 --> 00:00:58,840 Speaker 1: of behavioral science consultancy Inventium. And this is how I work, 14 00:00:59,000 --> 00:01:01,160 Speaker 1: a show about how how to help you do your 15 00:01:01,200 --> 00:01:05,319 Speaker 1: best work. On today is my Favorite Tip episode, where 16 00:01:05,360 --> 00:01:07,080 Speaker 1: you go back to an interview from the past and 17 00:01:07,120 --> 00:01:10,319 Speaker 1: I pick out my favorite tip from the interview. In 18 00:01:10,360 --> 00:01:13,600 Speaker 1: today's show, I speak with Victoria Divine and I wanted 19 00:01:13,640 --> 00:01:16,200 Speaker 1: to know when it comes to budgeting, what are some 20 00:01:16,280 --> 00:01:19,840 Speaker 1: of Victoria's favorite apps that she recommends to her clients. 21 00:01:20,440 --> 00:01:23,360 Speaker 2: Oh my gosh, there are so many of them. When 22 00:01:23,360 --> 00:01:25,319 Speaker 2: it comes to budgeting, though, before I tell you what 23 00:01:25,400 --> 00:01:29,040 Speaker 2: my favorite apps are, I think understanding what a budget 24 00:01:29,160 --> 00:01:31,600 Speaker 2: is is really important because there seems to be this 25 00:01:31,720 --> 00:01:34,399 Speaker 2: idea that a budget is all about restricting what you 26 00:01:34,520 --> 00:01:38,880 Speaker 2: are spending. It's all about saying, Okay, so I need 27 00:01:38,920 --> 00:01:42,160 Speaker 2: a budget because I spend too much on groceries each 28 00:01:42,200 --> 00:01:44,400 Speaker 2: week and I'm now going to cap it at one 29 00:01:44,480 --> 00:01:47,880 Speaker 2: hundred dollars. So budgets make you feel restricted if you're 30 00:01:47,920 --> 00:01:52,160 Speaker 2: not looking at them from an abundance mindset. So a budget, 31 00:01:52,320 --> 00:01:55,320 Speaker 2: from that, she's on the money perspective, is much more 32 00:01:55,360 --> 00:01:58,960 Speaker 2: about just really deeply understanding where your money goes and 33 00:01:59,000 --> 00:02:00,880 Speaker 2: how it comes into your account and then how it 34 00:02:00,960 --> 00:02:05,040 Speaker 2: leaves your account, and not so much around restricting exactly 35 00:02:05,080 --> 00:02:08,200 Speaker 2: what the amounts should be, but rather looking at your 36 00:02:08,200 --> 00:02:11,240 Speaker 2: account going Okay, I am a couple and I have 37 00:02:11,320 --> 00:02:13,840 Speaker 2: two kids, and yeah, we spend three hundred dollars a 38 00:02:13,840 --> 00:02:17,840 Speaker 2: week on groceries. Does that provide value to us? And 39 00:02:17,919 --> 00:02:20,720 Speaker 2: if the answer is no, then cool, cut back your 40 00:02:20,720 --> 00:02:23,119 Speaker 2: groceries and you know, be a bit more savvy there. 41 00:02:23,600 --> 00:02:26,679 Speaker 2: But for a massive foodie like myself, I wouldn't want 42 00:02:26,720 --> 00:02:28,760 Speaker 2: someone to cut my grocery budget. I'd want them to 43 00:02:28,800 --> 00:02:31,120 Speaker 2: cut something else out before you tell me I can't 44 00:02:31,160 --> 00:02:34,480 Speaker 2: have my fancy stuff. And I think that everybody is 45 00:02:34,520 --> 00:02:36,959 Speaker 2: different in that way. So when you start to look 46 00:02:36,960 --> 00:02:40,799 Speaker 2: at budgeting, it's actually making sure that your values are 47 00:02:40,800 --> 00:02:43,079 Speaker 2: in line with the income coming in and going out 48 00:02:43,120 --> 00:02:46,040 Speaker 2: of your account. And there are lots of different ways 49 00:02:46,080 --> 00:02:48,520 Speaker 2: to manage it. So I've written a budget and cash 50 00:02:48,520 --> 00:02:51,399 Speaker 2: flow course and I do that because or I've done 51 00:02:51,400 --> 00:02:53,840 Speaker 2: that because I didn't feel like anything truly took you 52 00:02:53,919 --> 00:02:57,560 Speaker 2: on the journey of understanding your money story, understanding what's 53 00:02:57,600 --> 00:03:00,000 Speaker 2: coming in and going out, and creating a banking structure 54 00:03:00,160 --> 00:03:02,480 Speaker 2: that really works. And I feel like it goes beyond 55 00:03:03,720 --> 00:03:06,600 Speaker 2: what you could say budgeting apps do because it literally 56 00:03:06,639 --> 00:03:09,200 Speaker 2: tells you, Okay, this is what you spend, These are 57 00:03:09,200 --> 00:03:10,760 Speaker 2: the bank accounts I want you to have, and this 58 00:03:10,800 --> 00:03:12,600 Speaker 2: is how I want you to manage it for success. 59 00:03:13,040 --> 00:03:16,000 Speaker 2: Whereas a lot of my community also love apps like 60 00:03:16,080 --> 00:03:19,280 Speaker 2: Pocketbook and we Money, and you know there are a 61 00:03:19,280 --> 00:03:23,320 Speaker 2: million out there. It's just about what you actually value 62 00:03:23,360 --> 00:03:25,760 Speaker 2: and what you want to track. Because some of these 63 00:03:25,840 --> 00:03:29,640 Speaker 2: apps connect directly with your bank accounts and do data feeding, 64 00:03:30,120 --> 00:03:32,520 Speaker 2: and some people aren't comfortable with that, so some people 65 00:03:32,560 --> 00:03:34,960 Speaker 2: want to manually put it all into a spreadsheet. And 66 00:03:35,000 --> 00:03:36,920 Speaker 2: to be honest, there's no right or wrong when it 67 00:03:36,960 --> 00:03:39,200 Speaker 2: comes to budgeting as long as you are paying attention 68 00:03:39,320 --> 00:03:39,680 Speaker 2: to it. 69 00:03:40,480 --> 00:03:42,560 Speaker 1: If someone's just wanting to get started, and I love 70 00:03:42,600 --> 00:03:45,120 Speaker 1: that explanation of a kind of a reframe of what 71 00:03:45,120 --> 00:03:49,040 Speaker 1: a budget is, Like, what's a good go to app 72 00:03:49,680 --> 00:03:53,200 Speaker 1: that's simple to get started if someone wants to, I 73 00:03:53,200 --> 00:03:55,560 Speaker 1: guess we'll get more insight into where the money is 74 00:03:55,640 --> 00:03:57,040 Speaker 1: going to me. 75 00:03:57,160 --> 00:04:00,640 Speaker 2: It's actually the smart Money Go budgeting tool that you 76 00:04:00,680 --> 00:04:04,440 Speaker 2: can download. I just feel like it's a free spreadsheet 77 00:04:04,560 --> 00:04:06,920 Speaker 2: that you can fill in and get a good insight 78 00:04:07,040 --> 00:04:10,720 Speaker 2: into what you're spending and saving. I'm not the most 79 00:04:11,000 --> 00:04:14,280 Speaker 2: tech savvy person. There are lots of apps out there, 80 00:04:14,640 --> 00:04:16,919 Speaker 2: but I feel like when it comes to money, you 81 00:04:17,000 --> 00:04:19,480 Speaker 2: actually need to go back to basics and not rely 82 00:04:19,640 --> 00:04:22,480 Speaker 2: on technology too much to tell you what percentage you're 83 00:04:22,520 --> 00:04:25,960 Speaker 2: spending and reality. One of the most powerful things I 84 00:04:26,080 --> 00:04:28,719 Speaker 2: find that my community is able to do is what 85 00:04:28,800 --> 00:04:31,640 Speaker 2: I call a bank account audit, which is definitely as 86 00:04:31,640 --> 00:04:35,640 Speaker 2: sexy as it sounds. And that's when you print off. Yes, 87 00:04:35,760 --> 00:04:39,960 Speaker 2: print off, not do it online. I actually want you 88 00:04:40,000 --> 00:04:41,920 Speaker 2: to hold the paper in your hands and have two 89 00:04:42,000 --> 00:04:46,040 Speaker 2: different colors of highlighters, So printing off your bank statements 90 00:04:46,080 --> 00:04:49,680 Speaker 2: from the last three months and then highlighting your discretionary 91 00:04:49,720 --> 00:04:53,120 Speaker 2: costs and then highlighting your non discretionary costs. So these 92 00:04:53,160 --> 00:04:54,800 Speaker 2: are the things that you don't really need to be 93 00:04:54,880 --> 00:04:58,880 Speaker 2: spending money on and just having a good look at, well, 94 00:04:58,880 --> 00:04:59,960 Speaker 2: where is my money going? 95 00:05:01,000 --> 00:05:04,479 Speaker 1: Hello there. I hope you enjoyed this little excerpt of 96 00:05:04,560 --> 00:05:06,880 Speaker 1: my chat with Victoria, and if you want to hear 97 00:05:06,880 --> 00:05:09,120 Speaker 1: the whole interview, there is a link to that in 98 00:05:09,160 --> 00:05:12,120 Speaker 1: the show notes. And if you're looking for more tips 99 00:05:12,120 --> 00:05:14,919 Speaker 1: to improve the way that you work, I write a 100 00:05:14,960 --> 00:05:18,080 Speaker 1: short fortnightly newsletter that contains three cool things that I've 101 00:05:18,120 --> 00:05:21,719 Speaker 1: discovered that helped me work better, which range from interesting 102 00:05:21,760 --> 00:05:25,440 Speaker 1: research findings through to gadgets and software that I'm loving. 103 00:05:25,960 --> 00:05:28,760 Speaker 1: You can sign up for that at Howiwork dot cot 104 00:05:28,880 --> 00:05:32,200 Speaker 1: That's how I Work dot co. How I Work is 105 00:05:32,240 --> 00:05:35,800 Speaker 1: produced by Inventium with production support from dead Set Studios, 106 00:05:36,080 --> 00:05:38,000 Speaker 1: and thank you to Martin Nimba who does the audio 107 00:05:38,080 --> 00:05:41,279 Speaker 1: mix for every episode and makes everything sound much better 108 00:05:41,320 --> 00:05:44,160 Speaker 1: than it would have otherwise. See you next time.