Simple Steps To Budget and Save Money IMMEDIATELY

https://www.youtube.com/watch?v=kVshm_1mY30 With everything that is happen in the world right now you may be finding you need to learn how to cut expenses and start to budget. I've been through so many different budgets over the years, none of which worked, until I created this strategy for how to create an easy budget in 15-20 minutes. In this video I'm going to show you how to create a budget and start saving money immediately. Write Down All of Your Regular Expenses - 1:18 Calculate Your Expenses Based on Your Pay Cycle - 4:00 Take Your Income After Tax and Minus Regular Expenses, Can You Live Off What's Left? - 6:00 Look at What You Can Cut From Your Regular Expenses - 7:49 Set Up Your Budget and Automate Everything - 9:55 Automate Savings For Big Bills and Paying of Debt/Savings - 18:28 Look At It Daily and Do Weekly/Monthly Adjustments - 19:43 The Most Important Part: Now Focus on Making More Money!!! - 20:40 Recommended Videos: The 2-Year Financial Freedom Strategy - TBA Transcription: Ryan 0:00with everything that's happening right now you may be finding yourself in a situation where you really need to cut expenses for your life and you need to learn how to budget and if you haven't really learned and mastered budgeting up to this point you might be frantically thinking oh my gosh what do i do and so in this episode i'm going to show you the simple steps that you can use to create a budget and to start saving money in your life right now i've tried so many different budgets over the years tried lots and lots of different strategies failed at all of them until i came to this way of budgeting which can be done in as quickly as 15 to 20 minutes and then you can automate a lot of it as well so you don't need to continually think about it so this simple budgeting strategy i have found really helpful in my life and i think you might find it helpful to any of you staying till the end of the video that's actually the most important part because once we've set up our budget once we're saving money that's not necessarily going to get us to where we want to be financially and to improve our lives so that is the most important point which we'll talk about at the end of the video so how do we actually go about creating a budget and what is the steps that i use so the first thing that i do is i grab a pen and a piece of paper and i sit down with a cup of tea like i've got right now with your spouse with your partner or you may want to do by yourself and the first step is to write down all of your regular expenses that you have in your life so this stage we're not looking at things like how much do i spend on coffee per week how much am i spending at the supermarket i get takeout every night because i'm a terrible cook how much should i spend on petrol etc those things i call discretionary expenses or living expenses and they fluctuate week to week and each week each day we get to make conscious decisions about those so every day if i go to the petrol pump i get to decide how much petrol am i going to put in my car today when i go to the grocery store i get to decide how many groceries am i going to buy when i'm at the coffee shop i get to decide am i going to buy a coffee and we're going to make tea and coffee from home so their discretionary expenses and we're going to do with them a bit later the first thing we want to do is grab our pen grab a piece of paper and write down all of our regular expenses those so things that happen recurring in your life so this is everything from your rent or mortgage repayment your phone and internet maybe you've got a gym that might be frozen at the moment but normally gym things like netflix things like car insurance and registration electricity will be in their gas maybe debt repayments as well if you got credit card debt or bad debt and car debt that you're paying off what are those repayments go ahead write all that stuff down also include in there if you want at this stage how much you're saving each week or want to save but we can also come back to that later so i like to come back to the savings later you can choose to do it now if you want but basically write down all of those things on a piece of paper and write down how much they cost and how often you're doing it so if it's rent that might be weekly so you write down what your rent rent is and then write per week if it's your phone an internet that's likely monthly so you write that down and then write per month if it's something like car registration you might write down that figure and then write per year because that's an annual expense you might also want to add in car servicing there might be every six months so write down that figure and write every six months or double it and write every year so you want to have the figures down and you want to have the frequency of the figures as well so go through the list think about anything in your life that you're paying on a regular basis and that you may not have thought of you can usually do this pretty quickly within about five or 10 minutes to write down these things the next thing you want to do is actually go ahead and calculate those expenses based on your pay cycle so i find it easiest to budget based off my pay cycle i pay myself monthly through my business so i do my expenses monthly you might get paid weekly you might get paid fortnightly you might get paid monthly and so what we want to do is adjust our figures based on our personal pay cycle so to do this let's say for me it's monthly let's say i'm paying rent weekly what i want to go ahead and do is work out what is the monthly figure for that rent i think to get from weekly to monthly times by 4.33 but i can never remember so what i always do is if it's weekly i times it by 52 weeks in a year and then divide by 12 to get to the monthly amount if i've got annual things like my car registration then that i will divide by 12 months in a year so take that figure divided by 12 that's monthly how much I actually need to put aside for my car registration. Let's say you get paid weekly instead, the annual expenses like car registration divided by 52. In order to get your wigs, let's say you have, let's say you're paying your mortgage monthly, but you get paid weekly. Okay? Well, let's work out how much is your mortgage every single week by dividing by 4.33. Or I think, I think it's that otherwise, it will pay monthly times by 12. To get the annual figure then divide by 52. To get the weekly figure, I should have worked out this math before I started recording. But anyway, what you want to do is write down all those expenses based on your pay cycle, weekly, fortnightly monthly, whatever it is, and then you want to add them all together to adding our rent any iPhone and internet, adding our gym and Netflix and everything? How much is the total cost of our regular expenses throughout the year? How much does that come to? And we want to now compare that to our income. So we take out income after tax, the money that actually goes in your bank account, and we minus all those regular expenses. So let's say I'm getting $5,000 per month after tax into my bank account, and my regular expenses are $3,000 per month, just using an example. So I take the $5,000 that I earn, minus the $3,000 that I'm spending on these regular expenses per month. And then I work out and I started to think about, hmm, can I live off $2,000 per month for my coffee, for my groceries, for going out for clothing for petrol, and all of these discretionary things. And that's kind of the next step. And that's a bit more nitty gritty, you got to kind of think about your life and think about the money that you're spending, always find this process really hard. I can never understand off the bat, can I live off that or not? Sometimes it takes some trial and error to say, Okay, let's see if I can live off this and see how I go. Sometimes the answer is yes, sometimes it's no, but you can start to get an idea. Sometimes you'll do this, and you'll be like, okay, here's my income, here's my regular expenses. I've got $300 left for myself and my family for the month, can me and three children live off $300 a month. Not that it's just not going to happen here in Australia. And so sometimes you get to this situation where you're like, No, I can't live off that money. That is just a ridiculously small amount of money. And I now understand why I'm going into debt, because I'm paying all these regular expenses. And all I've got left to live off is this pittance. And so obviously, I'm using the credit card to supplement that. And so you can start to say, oh, wow, I actually can't live off this amount of money. Now the next step is to kind of go back into say, Okay, what can I cut out of these regular expenses? Or what can I lower? Can you lower your phone bill from $100 a month to $30 a month by going with a cheaper VA provider and going prepaid? Can you cancel the gym or cancel your Netflix or adjust your debt repayments to get a cheaper interest rate or to adjust those? Can you get cheaper car insurance. Or if you're in a really bad position, maybe you've just lost your job or you've had to take your pay card. Sometimes this is the time to swallow your pride and swallow your ego and say, okay, those debt repayments on the car and insurance payments on that expensive car got, I actually can't afford that. I may need to sell this car and get a cheaper car. Or maybe you're living somewhere that's too expensive. Maybe it's that really hard decision to say, Okay, I actually need to move somewhere that's more affordable. Or maybe I need to move back home with my parents for a time until I can get on top of this. So hopefully for you, it doesn't come to that. But it may come to that. And that's the time to sit and to say, Okay, what do I need to sacrifice?