You're Not Actually on a Budget If...

Summary

In this vlog, the host debunks common misconceptions about budgeting, explaining that having money left in your account, paying bills on time, or paying off credit cards doesn’t equate to budgeting. A true budget is forward-looking, where you plan your income and expenses for the upcoming month, covering all categories like bills, food, clothing, and entertainment. The host emphasizes the importance of using budgeting tools like the EveryDollar app to simplify the process and avoid confusion. The message is clear: plan ahead and start budgeting today for financial peace of mind.

Takeaways

• 😀 A budget is a forward-looking plan for your finances, not just paying bills or having leftover money in your account.
• 😀 Simply having money left at the end of the month doesn't mean you're budgeting. A budget is about proactive planning for your expenses.
• 😀 Paying bills on time does not constitute a budget. It's about planning your expenses before they happen, not just reacting to them.
• 😀 Paying off credit cards each month is good financial management, but it's not the same as budgeting. A budget involves anticipating your future spending.
• 😀 Three common misconceptions about budgeting include thinking that having money left over, paying bills, or paying off credit cards equals budgeting.
• 😀 A true budget includes all categories of spending, not just essential bills. This includes things like food, clothes, and entertainment.
• 😀 A budget should be planned in advance, detailing all your expected income and expenses for the coming month.
• 😀 Budgets can be created and tracked either on paper or through digital tools, such as a budgeting app on your phone.
• 😀 The EveryDollar app is a user-friendly tool for budgeting that simplifies tracking your income and expenses.
• 😀 Budgeting is not meant to be intimidating. Using tools like EveryDollar makes it easy to track and plan your finances effectively.
• 😀 The speaker encourages viewers to start budgeting today, and recommends downloading the EveryDollar app for a simple and effective budgeting experience.

Q & A

What is the main topic discussed in the video?

The video discusses the concept of budgeting, highlighting misconceptions about what a budget truly is and how to create an effective one.

What is one misconception people have about budgeting according to the script?

One misconception is that having money left in the bank account at the end of the month means you're budgeting. In reality, this does not qualify as budgeting.

Why is paying bills on time not considered budgeting?

Paying bills on time is about managing existing expenses, but budgeting involves planning for future expenses and not just reacting to current ones.

What is the third misconception about budgeting mentioned in the video?

The third misconception is that paying off your credit card bill every month means you're doing a budget. However, this only shows you're managing past debt, not planning for future expenses.

How does the speaker define a true budget?

A true budget is forward-facing, meaning it involves planning for the next month by listing all potential expenses, including bills, food, entertainment, and other categories.

What are some of the categories to include in a budget?

A budget should include categories like rent or mortgage, electricity, cable, food, clothing, entertainment, and any other recurring expenses.

What is the significance of planning a budget in advance?

Planning a budget in advance helps individuals allocate their money properly for the upcoming month, ensuring they can cover all expenses without going into debt.

What tool does the speaker recommend for budgeting?

The speaker recommends the 'Every Dollar' app, which is a budgeting tool that helps users create and manage their budgets easily.

Why does the speaker emphasize the use of the 'Every Dollar' app?

The speaker emphasizes the 'Every Dollar' app because it makes budgeting simple, easy to understand, and accessible, helping users track their spending effectively.

What does the speaker encourage viewers to do after watching the video?

The speaker encourages viewers to download the 'Every Dollar' app and start budgeting right away to avoid thinking they're budgeting when they actually aren't.