Zero Based Budget | Dave Ramsey February 2017

Summary

In this video, the creator shares their experience with budgeting using the Dave Ramsey Cash Flow Plan. As part of their Financial Peace University (FPU) journey, they walk viewers through their monthly budget, detailing expenses for charity, housing, groceries, transportation, and personal items. They discuss their goal of saving for a down payment on a home while keeping expenses low by living with their parents. The video also highlights the importance of organizing finances and using a zero-based budgeting method to manage money effectively.

Takeaways

• 😀 The content creator is currently enrolled in Dave Ramsey's Financial Peace University (FPU) and regularly shares budgeting content on their channel.
• 😀 The video focuses on a detailed walkthrough of the creator's monthly budget, following the Dave Ramsey cash flow plan.
• 😀 The creator explains that their housing expenses are minimal due to staying at their parents' summer home while saving for a down payment on a house.
• 😀 Charity contributions are planned for $200, and the emergency fund is fully funded, allowing the creator to redirect that money into a house savings fund.
• 😀 The creator's budget includes necessary categories like groceries, dining out, clothing, transportation, and medical costs, with a total grocery budget of $200 for the month.
• 😀 The creator highlights that their medical expenses are currently minimal, with no upcoming doctor visits or prescriptions to budget for.
• 😀 The budget for transportation, gas, and oil is set at $200, while there are no upcoming expenses for car repairs or tires.
• 😀 The creator is currently not using sinking funds, though they plan to begin using them after purchasing a home.
• 😀 Insurance policies, including life, auto, and renter's insurance, are covered in the budget, with a total cost of $104.17 for the month.
• 😀 The creator is debt-free and in Baby Step 3B of the Dave Ramsey plan, focusing on saving for a 20% down payment on a home.
• 😀 The video encourages viewers to check out the Dave Ramsey website for more resources on budgeting and FPU, with links to related content and videos provided in the description box.

Q & A

What is the main focus of this video?

The main focus of the video is budgeting, specifically showing how the creator plans and executes their monthly budget using the Dave Ramsey cash flow plan.

Why is the creator doing another budget video?

The creator is doing another budget video because they are currently enrolled in Financial Peace University (FPU), and they want to share their budgeting process with viewers. The video also provides an update on their financial situation.

What is the creator's current financial situation, according to the video?

The creator is currently debt-free and in the process of saving for a home, as they are on Baby Step 3B of Dave Ramsey's financial plan. They are also living in their parents' summer home with minimal living expenses while saving for a down payment.

What is Baby Step 3B in Dave Ramsey's financial plan?

Baby Step 3B is the phase where individuals focus on saving for a 20% down payment for a home. The creator is currently working toward this goal by building their savings while living with minimal expenses.

What budgeting system does the creator use in this video?

The creator uses the Dave Ramsey cash flow plan system, which includes tracking various expenses and ensuring that every dollar is assigned a purpose. They also utilize a zero-based budget approach.

How much is the creator's monthly take-home pay?

The creator's monthly take-home pay is $2,630.16.

How does the creator allocate their budget for housing?

Since the creator is living in their parents' home, they do not have traditional housing expenses. They pay minimal costs, such as $90 for their phone and $45.29 for internet, totaling $135.29.

What categories does the creator include in their budget?

The creator's budget includes categories such as charity, emergency fund, housing (phone and internet), groceries, restaurants, clothing, gas, repairs, medical, insurance, personal expenses, entertainment, and miscellaneous.

Why does the creator have renters' insurance despite living with parents?

The creator maintains renters' insurance to cover their belongings in case of a fire, flooding, or other emergencies. Even though they live at their parents' house, this minimal policy ensures their possessions are protected.

What is the creator's plan for the future regarding sinking funds?

The creator does not currently use sinking funds but plans to start once they purchase a home. They aim to use sinking funds for future expenses like furniture or other large purchases after buying their home.