Budgeting and saving money sounds really easy, but if it was then people would have money...and they don’t. So let’s talk about some budgeting tips and at the end I’ll even share how I do it myself, which is strange mostly cause I’m weird but maybe it can help you! Money envelope system
Journal entries
Collecting all bank statements and credit card statements (don’t know where your money is going? This will tell you in a brutally honest way)
Automatic payments to avoid late fees
Automatic transfers can work the same way
Direct deposit into multiple accounts
Forced savings (mortgage, CDs, automatic transfers, 401ks, ROTH IRAs, hiring me to forcefully take your money and saving it for you - I don’t do that, just subscribe to the channel, best I could do. If I did I’d charge hourly)
Once you get paid transfer all but a little from checking to savings/MM (what I kinda do)
Speaking of what I do...
I’ve done this next idea myself, I taught my brother, heck even my parents cause no one ever showed them...
It’s all about the numbers so you have to figure out your cash flow. Some say cash is king, I say cash flow is king.
You look at 2 factors and write them down. Your income AND your expenses. I’ve talked about this before but this is what I’ve done and I built up tens and tens of thousands of dollars...
Write down your income (hopefully you know it and hopefully you have one)
Next, write down your expenses (excel sheet)
Income - expenses = cashflow
THAT MEANS: I don’t care about your income. You can make $500k a year then spend that or even more than that a year (trust me I know someone like this)
If you do that you are in the same position as a kid working at McD and spending their entire paycheck cause they only work a few hours a week and sometimes get cut hours cause the store is losing money so they can’t work to get a bigger paycheck (not personal at all)
Technically your cashflow could be better than your boss. It matters what’s leftover. THEN you take that (that’s the number you look at) and save it, use it, do something productive with it!
So when I have to buy something I look at the price compared to my cashflow per month. If my cashflow is $1000 and something is $2000 let’s say, you have to save for 2 months...is that worth it for the time you put in?
Or if something is $20, compared to our $1000 it’s almost insignificant. Not to say spend any small amount of money cause it adds up of course.
I just compare prices and costs to my cashflow and maybe you should too!
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