In my experience, getting out of debt was almost easier than managing our money after getting out of debt. When you're getting out of debt, you have that focus and intensity which can go away once the debt is gone. Once you're out of debt it's tempting to think "Well, we've got it made now". But if you do that and don't pay attention to your money it has a way of evaporating.
Basically once you’ve become disciplined in saving and have paid off your debt and can pay your bills without worrying then you can treat yourself occasionally within reason.
His advice is live homeless for 10+yrs till debt is paid off then continue to live poor until you’re in your 70’s and then spend very little till you die😂 he’s a rich man outta touch with the real world because well he’s never had to work haha
Good advice on budgeting for a general category then every line item. I recently moved into a house and have a general house miscellaneous envelope. It's really hard to figure out what to put and constantly going over or not putting down specific items so it's just a single group of expenses that i can confidently spend from.
Meh, once my bills are paid, the rest is disposable income. I can get away with that though, because I'm really not a spender. I was at Walmart earlier and splurged under a whole ten dollars in the clearance aisle.
Timothy Dillon 😂 you sound like me...even though I could spend quite a bit more than I do, I'm still being pretty careful about whatever I DO spend, and I think it's because I spent time getting out of debt and creating a savings, and I don't want to see all that go down the drain, so I'm still careful about whatever I spend.
We are the same pretty easy to figure avg monthly expenses minus avg monthly income after you put away some for savings rest you can do whatever you want not limited to particular allocations of a budget. Do this and since we are naturally frugal we save alot pretty easy.
Yup. Once all bills and obligations are paid and met each month anything above that is just gravy. After debt is gone it just gets better and the wealthy accumulate. Heck I made a big crockpot of stew with fillet mignon on purpose yesterday with all fresh veggies and been slow cooking since yesterday and smells so good.
It takes a mindset change to go from saving, getting out of debt and investing to spending for entertainment or joy. You have formed a habit that you are now going against so there is some anxiety there. But keep doing a budget, track your money and know you can do the things you want to do.. then go do them.
Yeah she just needs "targets" for what she wants, mortgage and debt are easy targets, because it's amount you already know, but "going out to eat" hasn't been spent but if you decide it on a whim you may not see it as an amount to be compared against your income
That exactly why she needs a realistic and detailed budget. Like Dave said, it takes an hour or so to initially set up but takes less time to adjust and fine tune.
Few months ago I finally was able to increase my weekly food budget to $75 a week. If I don't spend the whole $75 that week I go out to dinner with what's left.
@AnimatedIdiotGuide Yes I took ten to fifteen years To pay the lawyer Paid my house off and anybody I borrowed money from. I have no. Debt for over a year. Got a fully funded emergency Four One year. In my savings account. Yes, he told you it's a scam. But I still enjoy going out once in a while because I live alone and I get tired of cooking.
I don't eat out but I buy really good food to cook at home. How can you afford house repairs? 15000 tree removal, 10000 new roof,8000 for new central unit
It's a mental mindset. When you live within your means and you have money (BS-7 Build / PROTECT wealth and give) , budgeting is a waste of time ...for me. Do whatever floats your boat!
I give myself a category of 'pocket money' which has it's own debit card - and every week my pocket money goes into my pocket money account. if I want to buy a coffee, or buy my lunch, or meet mates for a beer, whatever, I use my pocket money. But it's in the budget so I feel really at peace with using it. However, I'm starting to look at my pocket money spending and thinking "That's a little too generous, I might cut that by 25%"
@@stevenporter863 I think if there is a good reason for it, that having more than $1000 starter emergency fund is ok...Sometimes some people need more than just $1000 for various reasons yeah.
What I find so difficult is that things happen unexpectedly. I just had to pay for physical therapy unexpectedly, it wasn’t an extravagance as without it I would not have been able to work. This is the same for car expenses which go up and down and cannot be budgeted accurately. If you think you’ve met your clothes budget you spend it then you lose or trash a piece of clothing g you really need. Because things like this are unexpected I just feel more of a failure if I haven’t kept to it.
Public transportation if possible, it's usually cheaper. Or a combination, but Uber is probably cheaper than a car payment + insurance + gas + repairs.
this is very true after paying off debt I no longer had a conflict and I spent a few months splurging but when my girlfriend got pregnant I buckled down hard. Unfortunately she had a miscarriage but I still have the urgency to save for a child.
I dont use the envelope system. I looked at what I have spent money on in the past month and sperated an essential from non-essential. A rarely used subscription is non-essential. Internet and power is essential. Cut out what is non-essential. When I go shopping I only buy what I need. I spend less when I am under a time limit at the store and when I stick to my list. Use the lower cost grocery stores like Costco or Walmart. Only buy what is on your list and aim for a short trip. Like "ok I need to be out of here or at check out in 20mins" or whatever. Save for annual cost like insurance and property tax. I don't call what I do a budget. I call it saving money for yearly cost and only buying what I need.
Put X% in savings account or a second checking. This is your "future" account. Retirement, car dies, medical, clothes, etc. You tap that for those. Pay your fixed bills (electric, water) when the paycheck arrives. After that. Just spend. Your account balance will fix your problem. If you go to Walmart and buy something like clothes, transfer that amount out back at home. Or segregate at register. Then year over year see how much the future account grows. Go for 10%. Adjust the x% of paycheck according. Keep in mind, future is retirement too.
@@michaelcarter266 I remember many using the envelope thing in the 70s. Can understand it back then since most used cash for things. All I need is my Iphone/IPad and a few apps.
Mike Summers - I have separate bank accounts with different photos on each of the debit cards. It now only helps my spending but also helped me save up for larger items. For example, when I was saving for a vacation, each month I put a certain amount of money into that account but also anything I spent for the vacation came out of that account. If the vacation is a trip to the beach, get a card with a photo of the beach. I did the same saving up for a new car. It actually made "budgeting" kind of fun.
I have a loan which I could pay off with savings - freeing up £500 per month that I could then save. But I’m worried that if I pay it off and then need some work on the house (we need a new boiler) then I won’t have anything. Anyone got any advice for me? 🙏
The hosts of this show would tell you to use all of your savings except $1000 to pay off or pay down the loan, then hope and pray that nothing unexpected will come up in the near future that costs more than $1000.
I’ve never had a budget in my life. We are happy with the lesser things in life. We do not spend money on the whim , we spend where we need to , we have a 3 year emergency fund laid up and the extra goes into investing , land , precious metals , 16-18 month worth of food in the house and high dividend long term stocks. A little self discipline goes a long ways toward a balanced and happy life.
@@LG123ABC Agree...it's just a different dynamic than focusing on getting out of debt. We have to change whatever we are focusing on financially now, instead of debt reduction.
AVP so ..."L.A> Reid ,.. knows he is really there "not in prison / because he is bond to Martin Luther king / and even Malcom X'/ the way "Russle Simon is body to "Run / becau e he killed run / / and they are really telling y'all something way diffent / / AVP it's cool / did we already listen t this one / ,.. my fault /
Yeah, but even if you don't have debt, not budgeting or planning your finances can end up putting you back in debt cause you aren't budgeting to save money for things coming up. All it would take is needing a new transmission for your car or a hot water heater for your home that would set you back into debt again. Just cause you don't have debt doesn't mean that you want to spend everything that you make. If you aren't careful, you can end up back where you used to be financially just cause you choose not to pay attention to your finances.
@@vickieclark5931ot true. You just live below your means. It's a mindset, not a math problem. "Things coming up.." that's what puts you back in debt.
In my experience, getting out of debt was almost easier than managing our money after getting out of debt. When you're getting out of debt, you have that focus and intensity which can go away once the debt is gone. Once you're out of debt it's tempting to think "Well, we've got it made now". But if you do that and don't pay attention to your money it has a way of evaporating.
It is because managing is purgatory. You come to the realization that you were spending all that time just to still be in the RAT RACE.
Definitely agree
now."
Yup, I’d say Im more laid back in working so much and spending more
Automating money going to investments and sinking funds is what keeps us on track after being debt free
Basically once you’ve become disciplined in saving and have paid off your debt and can pay your bills without worrying then you can treat yourself occasionally within reason.
Well darn! I thought I could go all out because all businesses and the world knows that I know how to pay my bills and they would give me a break.
"Spending Plan". Brilliant!! Teaching people to always make a monthly plan for their money. So simple, yet so brilliant.
He has great advice for everyone regardless of their financial situation.
His advice is live homeless for 10+yrs till debt is paid off then continue to live poor until you’re in your 70’s and then spend very little till you die😂 he’s a rich man outta touch with the real world because well he’s never had to work haha
Dave is spot on❤
Good advice on budgeting for a general category then every line item. I recently moved into a house and have a general house miscellaneous envelope.
It's really hard to figure out what to put and constantly going over or not putting down specific items so it's just a single group of expenses that i can confidently spend from.
Rachel is soooooo on point on this one
Meh, once my bills are paid, the rest is disposable income. I can get away with that though, because I'm really not a spender. I was at Walmart earlier and splurged under a whole ten dollars in the clearance aisle.
Timothy Dillon 😂 you sound like me...even though I could spend quite a bit more than I do, I'm still being pretty careful about whatever I DO spend, and I think it's because I spent time getting out of debt and creating a savings, and I don't want to see all that go down the drain, so I'm still careful about whatever I spend.
We are the same pretty easy to figure avg monthly expenses minus avg monthly income after you put away some for savings rest you can do whatever you want not limited to particular allocations of a budget. Do this and since we are naturally frugal we save alot pretty easy.
@@tristan2332 👍
😆😩😩😆
What about saving for retirement and kids college?
Doesn’t sound like a money management challenge. Sounds like a self confidence issue.
Yup. Once all bills and obligations are paid and met each month anything above that is just gravy.
After debt is gone it just gets better and the wealthy accumulate.
Heck I made a big crockpot of stew with fillet mignon on purpose yesterday with all fresh veggies and been slow cooking since yesterday and smells so good.
Ita definitely a dedication
It takes a mindset change to go from saving, getting out of debt and investing to spending for entertainment or joy. You have formed a habit that you are now going against so there is some anxiety there. But keep doing a budget, track your money and know you can do the things you want to do.. then go do them.
Same boat, I had to force myself to work overtime again and working helps not to spend
That was the best part when I worked the night shift; I was either working or sleeping with very little time to spend.
I tought i could work less hours since im debt free but nope i still work the same or more. Difference is now i can have fun with it!!
@@jo4285 like today my hours were just below a 8hour day, fine with me but the others get mad and worked up over it understandably
Yeah she just needs "targets" for what she wants, mortgage and debt are easy targets, because it's amount you already know, but "going out to eat" hasn't been spent but if you decide it on a whim you may not see it as an amount to be compared against your income
That exactly why she needs a realistic and detailed budget. Like Dave said, it takes an hour or so to initially set up but takes less time to adjust and fine tune.
I stopped keeping records of spendings after we moved to a tiny place where only accomodates necessities.
Few months ago I finally was able to increase my weekly food budget to $75 a week.
If I don't spend the whole $75 that week I go out to dinner with what's left.
Why waste it on going on when you can just save it? Restaurants are a scam anyways, even Dave would say that
@AnimatedIdiotGuide Yes I took ten to fifteen years To pay the lawyer Paid my house off and anybody I borrowed money from. I have no.
Debt for over a year. Got a fully funded emergency Four One year.
In my savings account.
Yes, he told you it's a scam.
But I still enjoy going out once in a while because I live alone and I get tired of cooking.
I don't eat out but I buy really good food to cook at home. How can you afford house repairs? 15000 tree removal, 10000 new roof,8000 for new central unit
It's a mental mindset. When you live within your means and you have money (BS-7 Build / PROTECT wealth and give) , budgeting is a waste of time ...for me. Do whatever floats your boat!
I give myself a category of 'pocket money' which has it's own debit card - and every week my pocket money goes into my pocket money account. if I want to buy a coffee, or buy my lunch, or meet mates for a beer, whatever, I use my pocket money. But it's in the budget so I feel really at peace with using it. However, I'm starting to look at my pocket money spending and thinking "That's a little too generous, I might cut that by 25%"
This callers question was one that I have too.
Rachel you can retake Financial Peace University and then see if it needs to improve anywhere
True but Dave won't let it be adjusted. He thinks it is perfect through all times (no adjustments for inflation, etc.)🤷
@Steven Porter it's written in stone...can't br changed at all
@@stevenporter863 I think he would say that an adjustment for inflation (if needed) is getting a part time job or side gig to increase income.
@@Sheryl777 Ya, second job, but talking about adjusting starter fund amount from 1989 prices (or whenever he came up with that number).
@@stevenporter863 I think if there is a good reason for it, that having more than $1000 starter emergency fund is ok...Sometimes some people need more than just $1000 for various reasons yeah.
When the video began she didn't mention a car loan
You got this far. Save for a vacation, Set a goal to buy a luxury item to pay in cash.
What I find so difficult is that things happen unexpectedly. I just had to pay for physical therapy unexpectedly, it wasn’t an extravagance as without it I would not have been able to work. This is the same for car expenses which go up and down and cannot be budgeted accurately. If you think you’ve met your clothes budget you spend it then you lose or trash a piece of clothing g you really need. Because things like this are unexpected I just feel more of a failure if I haven’t kept to it.
Do an emergency fund and make it a priority to rebuild it immediately (like paying a bill) after one of these unexpected happen.
@@stevenporter863 thank you that’s a good idea 😀
@@stevenporter863 ✔
What's the suggestion if you have no car but no savings to buy a car yet? Uber to work?
Public transportation if possible, it's usually cheaper. Or a combination, but Uber is probably cheaper than a car payment + insurance + gas + repairs.
Rachel missed the question.
I consider going out to restaurants entertainment.
this is very true after paying off debt I no longer had a conflict and I spent a few months splurging but when my girlfriend got pregnant I buckled down hard. Unfortunately she had a miscarriage but I still have the urgency to save for a child.
So, I struggle budgeting too. The envelope system doesn't work for us anymore because the world functions via bank draft and plastic. Somebody help!
I dont use the envelope system. I looked at what I have spent money on in the past month and sperated an essential from non-essential. A rarely used subscription is non-essential. Internet and power is essential. Cut out what is non-essential. When I go shopping I only buy what I need. I spend less when I am under a time limit at the store and when I stick to my list. Use the lower cost grocery stores like Costco or Walmart. Only buy what is on your list and aim for a short trip. Like "ok I need to be out of here or at check out in 20mins" or whatever. Save for annual cost like insurance and property tax. I don't call what I do a budget. I call it saving money for yearly cost and only buying what I need.
Put X% in savings account or a second checking. This is your "future" account. Retirement, car dies, medical, clothes, etc. You tap that for those.
Pay your fixed bills (electric, water) when the paycheck arrives.
After that. Just spend. Your account balance will fix your problem.
If you go to Walmart and buy something like clothes, transfer that amount out back at home. Or segregate at register.
Then year over year see how much the future account grows. Go for 10%. Adjust the x% of paycheck according. Keep in mind, future is retirement too.
Check out YNAB
@@michaelcarter266
I remember many using the envelope thing in the 70s.
Can understand it back then since most used cash for things.
All I need is my Iphone/IPad and a few apps.
Mike Summers - I have separate bank accounts with different photos on each of the debit cards. It now only helps my spending but also helped me save up for larger items. For example, when I was saving for a vacation, each month I put a certain amount of money into that account but also anything I spent for the vacation came out of that account. If the vacation is a trip to the beach, get a card with a photo of the beach. I did the same saving up for a new car. It actually made "budgeting" kind of fun.
I have a loan which I could pay off with savings - freeing up £500 per month that I could then save. But I’m worried that if I pay it off and then need some work on the house (we need a new boiler) then I won’t have anything. Anyone got any advice for me? 🙏
The hosts of this show would tell you to use all of your savings except $1000 to pay off or pay down the loan, then hope and pray that nothing unexpected will come up in the near future that costs more than $1000.
@@megalodon1726 thanks 🙏
Some people just need stress in their lives to have meaning. 🤷♂️
It's a distraction from the ultimate truth, the fact we are here for a limited time on earth. It's a hard truth to face
I'm the kind of person that could accidentally fall into $1 mil net worth in 10 years.
I’ve never had a budget in my life. We are happy with the lesser things in life. We do not spend money on the whim , we spend where we need to , we have a 3 year emergency fund laid up and the extra goes into investing , land , precious metals , 16-18 month worth of food in the house and high dividend long term stocks. A little self discipline goes a long ways toward a balanced and happy life.
How do you know it’s enough for retirement?
Nice problem to have
Sell the caller
Rachel looking like such a mommy
Separating money into different envelopes is for clueless children. I can guarantee you Dave himself doesn’t do that !
Give me a break already
Where’s the struggle here?
Managing your money after getting out of debt can actually be more difficult because the gazelle intensity is no longer there.
@@LG123ABC Agree...it's just a different dynamic than focusing on getting out of debt. We have to change whatever we are focusing on financially now, instead of debt reduction.
✝️🙏
most chaotic person he’s ever seen
Ramsey is good but now I be watchin Caleb hammer I feel like a can relate better to people around my age more
A woman not able to control her spending. Color me shocked!
Well she is debt free including her house so.. not able to control isn’t accurate.
Yeah? I know a lot of males with this problem too, go figure!
Incel energy right here
Newsflash! There are men who can't control their spending. Shocking? Nope.
@@Jaiem_ Men understand if they do not learn to handle money they end up on the street. How many men are homeless VS women?
AVP
so ..."L.A> Reid ,.. knows he is really there "not in prison / because he is bond to Martin Luther king / and even Malcom X'/ the way "Russle Simon is body to "Run / becau e he killed run / / and they are really telling y'all something way diffent / /
AVP
it's cool / did we already listen t this one / ,.. my fault /
She just call to show off.
Sour grapes.
Soup grapes??.. u must not understand life, u can get humbled real fast!
@@Buggu3 Sounds like you're projecting.
Financial obligations,worry, and issues doesn’t end when debt is paid off.
@@blackworldtraveler3711 Especially if your self employed.
You have no debt. So you really don't need a budget.
Retirement is an invisible debt that you always have until.... well let's not get morbid, lol. A budget is extremely important!
Budgeting is important so that you don’t become disorganised. Disorganisation leads to overspending
Yeah, but even if you don't have debt, not budgeting or planning your finances can end up putting you back in debt cause you aren't budgeting to save money for things coming up. All it would take is needing a new transmission for your car or a hot water heater for your home that would set you back into debt again. Just cause you don't have debt doesn't mean that you want to spend everything that you make. If you aren't careful, you can end up back where you used to be financially just cause you choose not to pay attention to your finances.
@@vickieclark5931ot true. You just live below your means. It's a mindset, not a math problem. "Things coming up.." that's what puts you back in debt.
@SilentEire And overspending leads to...wait for it...
...Debt. 😢