The 15 Minute Budget

https://www.youtube.com/watch?v=I8x-_Fzcu3k I've tried so many different budgets and ways of budgeting over the years, none of which work. Eventually with I created what I can The 15 Minute Budget as an easy way to create a budget and automate your finances and your savings. ING Special Offer Free 15 Minute Budget Template 0:00 - Introduction0:34 - What is The 15 Minute Budget3:48 - Bank accounts you need to make this work5:04 - Going through the 15 Minute Budget Template12:28 - Setting up automations15:43 - Managing your budget weekly16:41 - Setting up automatic transfers18:44 - What do you do when a bill is due20:11 - How to use this budget to pay off debt21:24 - Why this works so well for me22:31 - The 15 Minute Budget in a Nutshell Transcription: Ryan 0:00I have tried so many different budgets and way of budgeting in the past, it's not funny at all, without much success either tried everything from putting cash in envelopes to using iPhone apps to daily tracking my money to give myself a daily amount, I tried so many different things. And all of them just I really struggled and failed to the point where I just didn't run a budget. And it wasn't until I started getting serious about my finances, that I decided I need to work out a way that works for me. And with the help of the Barefoot investor, in mixing some of my own ideas, I created what I call the 15 minute budget. Now, this is a budgeting technique where you can sit down and in a matter of about 15 minutes, you can kind of do a reset of your life, and quickly see how you're going in terms of income, what your regular expenses are, how much you know, you're paying in Internet and Phone and rent and things like that. And then you can look at, okay, how much money do I have leftover for spending each week, and you can give yourself a regular amount of spending money. And this is your focus. So the 15 minute budget is a sit down so you can look at this. But then you can also automate all of this sort of stuff. So your income comes in, then you automatically organize your regular expenses to be paid. So things like your rent, things like insurances phone bill, even bigger things that you have to pay for annually, like your car registration, these aren't going to be a shock to you anymore, because you're going to automate saving for those so that when your car radio comes up, and you've got to pay one or $2,000 for that, that money is already put aside, when your gas bill or your electricity comes up every quarter, you're gonna have money put aside for that. So we're going to automate everything. And then we're also going to give ourselves a set amount of money each week to live off. Well, you can do fortnightly or monthly if you prefer, but we're going to give ourselves a set amount of money each week to live off. That's our spending or our living money. And that's where our focus goes. So it's a sit down, it's a let's get clear bird's eye view of where I'm at. Let's then go ahead and organize and automate everything. And then all I have to focus on is my spending money each week. So my regular expenses, all paid for my debt reduction, all paid for my saving for my house deposit, all automatically paid for this will do everything automatically. And all I have to focus on is each week, I've got a set amount of money, let's say I've got $400 per week to spend. However, I like, okay, I can spend that on petrol, I can spend that on going out, I can spend that on exciting things for my kids, I can spend that on school fees or shoes for everyone that week, how I spend this money per week is up to me. So this budget, I find within 15 minutes gives me complete clarity over my situation and where I'm at and what money I have to work with. But then this technique of allocating myself spending money, and automating everything else gives me flexibility in my life, I've got certainty that my debts are being paid, that I'm saving money, that I'm paying my bills, that's also that's all happening. But then I've got flexibility in my life on what I want to spend my money on, we're now going to go back inside, I'm in the van at the moment, we're going to go back inside and jump on the computer, because I've created a template. And we're going to do the overview. First we're gonna do the bird's eye view, and look at our income, we're going to look at our expenses. And then we're going to go ahead and set this up. As I go ahead and head back to the house. Before we jump on the computer. I will say that in order to make this work, I had two bank accounts each with cards attached to them. So these are bank accounts I can use to spend money on things, they've got Visa Debit. So I've got two cards, and I got three online savers to make this work. Now I personally use IMG because they're an online bank, they've got no fees, and actually have a special offer going on at the moment. Whereas if you sign up, and there's a couple of things you have to do, like deposit some money and use the card a couple of times, if you sign up before the 30th of June, you can actually get $100 for free into your account. So that's a pretty good sign on bonus. And I think I get some money too if you sign up through my link, but I'm not exactly sure. So I might be an affiliate link. But if you go to onproperty. com, au forward slash i n g, I'll link up to it down below. You can see that offer and you can get access to that. If you're watching this after the 30th of June. They do run offers from time to time so that link will still work. Even if you don't get an offer. their bank accounts are absolutely free. They got good interest rates on their online savers. And I personally just use them and love them as a bank. So go to onproperty dot com.au forward slash IMG to check that out. Let's go ahead and jump on the computer. Okay, so here we are at the 15 minute budget template. As you can see, it's just one page, if I go ahead and zoom out a bit, you can see that it's just a couple of boxes that you need to fill in, it's really not very hard. And if you do want to get access to this template, then just go ahead and go to onproperty.com.au forward slash budget, and you'll be able to get it through your email address there. So the 15 minute budget, how are we going to do this? Well, the first thing that we want to do is go through and put in our income. Now this could be income from a job could be positive cash flow from a property could be Centrelink, or government support. Or maybe you got some dividends coming through shares, whatever it is put it in here, and you want to put in after tax. So what are you getting weekly, monthly, or annually after tax. So let's just assume we're earning about $100,000 per year, maybe as a couple, maybe as a single person, and then we're paying tax on that. So about $75,000 per year in terms of income. Now for weekly, I'm just going to take the annual divided by 52. Because it doesn't do that for you. And then we have our total, weekly, monthly and annual income. So you might get paid weekly, you might get paid monthly, you probably don't get paid annually. But maybe monthly, but this allows you to work out on a weekly or monthly basis. And you can go through and do that. Next we want to go through is the bills section down here. Okay, I've got to pay yourself first and discretionary spending at the top because they're probably the most important, but really we need to go through the bills next. So our mortgage, how much are we paying on our rent or mortgage? Maybe we're paying 400 a week? How much are we paying on electricity? Okay, maybe 2000 a year, gas don't have gas at the moment, internet $100 a month phone $100 a month, car rojo maybe $1,000 a year insurance $1,000 a year. What rates Do you have to pay for water 500 a year council rates if you own a property, car servicing, put that at 500 a year daycare or school. So school and school uniforms. It's probably a couple of grand a year for me private healthcare 3000 a year debt payments you would put in here as well. These are the minimum repayments that you have to pay on your debt. So not necessarily paying off debt. But what are you obligated to pay in order to pay it off in the loan term. And then you can add in some miscellaneous stuff in there as well. So let's go ahead and for the weekly ones, we'll divide the annual by 52, just so we can go ahead and get a good weekly number there. Okay, so now we've got our regular bills in terms of weekly in terms of monthly and in terms of annually. And in our summary. Over here, we can see that our income minus our bills, we still have money left over. Now, we haven't taken into account any big fun stuff, we also haven't taken into account our discretionary spending only changes to living money instead, I think that's a better term. So we haven't take into account our living money. So these are things like petrol, groceries, eating out, going to the movies, entertainment, buying clothes, all of this sort of stuff. So these are things that each week, or each fortnight or each month, you get to choose what you spend money on one week, you might spend more money on clothes, and then you're not going to spend money on food or money. One way you might spend more money on food and you can't buy any new clothes this week. So let's say we've got children, and so weekly living money at the moment is $500 per week, in order to pay for groceries, maybe more, maybe less. This is just an example. Okay, so this is money each and every week, we're gonna get $500. And we've got to learn to live off that. We can see in the summary over here that we're still got $300 a week left, or about $15,000 per year, left over. Now down here, we can see the big fun stuff. Maybe you want to go on holiday, maybe you want to get investment property, your car, I wrote movies down there. I have had people in my life who have done plastic surgery in order to do that.