Welcome to the Finance Gym Action Plan for a Better Life with Money video series. My name's Stacey Powell and if you're ready to not just know better about your money, but also do better then you've come to the right place.
And today we're going to be talking about the cold hard facts of budgeting.
If you've been following along in the series, hopefully, you first listened to a little bit more of the fun videos around budgeting; ways to kinda get around it a little easier, ways to be more inspired about it.
And today we're talking about rolling up your sleeves and just doing it. And if you've really never embraced budgeting before, I'm not going to lie to you, it's a little bit of work. But I promise you I've made as simple as possible, and I also promise you, you can do it.
So here's the thing, if you go to page 36 in the book, that's where you're going to find the action plan. And there some very obvious things in there like electricity, car insurance, all the obvious stuff. But what you're going to find around all that is almost 100 spending areas. And I worked really hard to make it as few as possible, but the reality is when you look at all of the things most of us spend money on in a given month, in a given year or over a given 5 year period, easily it's around 80 to 100. And so you really need to take a look at all of them.
There's a multitude of areas that we spend money in. And we all know the obvious ones right, like duh, we all have electricity and all that. But then there's the ones that we don't. Kinda the quiet areas that are a surprise, like root canals and car repairs and summer camps. You know, but the truth is if you have teeth you're eventually probably going to have a root canal or some kind of expensive dental expense. If you have a car, you're going to have a car repair. Sometimes it's $200; you can squeeze that in a month no problem. But sometimes it's $2000, that's a lot harder to squeeze. And if you have kids ... Well don't even get me started on the summer camps and everything else that comes along with having kids that we don't need to spend in a given month, but oh my gosh, stuff comes up. Am I right?
So here's the importance of budgeting ... If you don't set your financial flow up to be able to handle that $1000 root canal or that $2000 car expense then you're going to be stealing from your future. You can pull a credit card out when it happens, sure, but you're going to be spending money on interest. You're stealing from your future every time you do that.
You can also just kinda shove it into the month you know; that's what I did a lot. Well, I just won't go out to eat this month. I won't have any fun this month. I'll spend less money at the grocery store.
That's no big deal to do that in a given month. But if you do that to yourself over and over and over. It's a different kind of stealing from yourself. It's kinda stealing from your happiness. It's stealing from where it is that the flow of energy of money that really keeps us happy.
The other thing that I think we often do is, we don't put money in our savings, and that is really stealing from our future.
When we are trying to shove "emergency expenses" that we probably should have had set aside ready to roll. We are not doing the things that create for us a peaceful financial life ... having enough in reserves, having enough in retirement.
The end result, in my experience, in my own personal experience and in lots of people I've worked with is; disappointment, fatigue and just even the loss of faith in ourselves that we can have a peaceful financial life.
So I'd like you to attack this budgeting with a bit of fervor. I want you to set aside a couple of hours. Sit down with a glass of wine or a nice cup of coffee and really embrace doing this. I think in the end you're going to find out that this work is really worth it.
And as always I don't want you to do this alone. Join us over on our Facebook Group, Team Do Better. It's closed and private. I'd really like to see you there. You can also sign up to our newsletter at TheFinanceGym.com. Or subscribe to our YouTube video series. Good luck out there and thank's for watching.