how to budget and *actually* save money 💸 how I track + plan my spending (budgeting for beginners) 💰

Summary

In this video, the speaker shares their personal approach to budgeting, emphasizing the importance of manually tracking every transaction to stay accountable and motivated. They use a detailed spreadsheet to manage expenses, savings, and debt, while setting clear financial goals. Key tips include tracking daily spending, saving before spending, and breaking down quarterly bills into manageable monthly amounts. The speaker also highlights the benefits of using a visual tracking system and the power of keeping goals front and center to avoid overspending and maintain financial discipline.

Takeaways

• 😀 Consistently track your finances to understand where your money is going, even with a simple spreadsheet.
• 😀 Keep a clear, simple system to record income and expenses so it becomes a daily habit.
• 😀 Update your financial tracker regularly to avoid forgetting important transactions, such as random merchant names.
• 😀 Review your spending in real time through graphs to visually motivate yourself and stay on track with your financial goals.
• 😀 Save for specific goals (e.g., travel) and track the money spent against those savings to keep things organized.
• 😀 The key to saving money is spending less than you make, but it requires ongoing tracking and awareness of your spending patterns.
• 😀 Tracking expenses can reveal how little, unnoticed purchases add up quickly, helping you stay mindful of your spending habits.
• 😀 Start by simply tracking your spending without setting any immediate budget goals to avoid unnecessary pressure.
• 😀 Identifying areas where you’re willing to sacrifice can help you make progress toward your financial goals.
• 😀 Keep your 'why' (the reason you're saving) at the center of your financial plan to stay motivated and focused.
• 😀 Making small, consistent updates and reviewing your progress frequently can turn financial tracking into a daily habit that supports your goals.

Q & A

What is the main goal of the video?

The video aims to share a simple and effective way to budget and manage personal finances using a custom spreadsheet, tracking tools, and creating financial goals to stay motivated.

How does the speaker track their spending and income?

The speaker uses a custom spreadsheet that categorizes income, expenses, and savings goals. They update it daily to ensure everything is tracked, including variable income and transactions from different merchants.

Why is it important to track your transactions regularly?

Tracking transactions regularly helps avoid forgetting where money was spent, especially for purchases with random merchant names. It also allows for real-time adjustments to spending and ensures you stay on top of your financial goals.

How does the speaker stay motivated to save money?

The speaker stays motivated by visualizing their progress with graphs and regularly checking where their money is going. Seeing these updates in real-time provides motivation to continue working towards their savings goals.

What financial goal does the speaker prioritize in their budgeting?

The speaker prioritizes saving for travel, keeping a dedicated savings fund for this purpose. They also track other savings goals, such as building a house deposit fund.

How does the speaker handle variable income in their budget?

The speaker updates their budget each time they receive income, adjusting the amount based on what they earned that week. For example, if they earn $2,000 in one week, they update the spreadsheet accordingly and allocate money for savings.

What is the key to successfully budgeting, according to the speaker?

The key to successful budgeting is consistency. Tracking expenses regularly, setting clear financial goals, and staying motivated by monitoring progress through visual tools (like graphs) are essential for success.

Why does the speaker suggest tracking expenses before setting a budget?

The speaker recommends tracking expenses for one month without any expectations or a strict budget in place. This helps individuals gain awareness of where their money goes and identify areas where they can cut back.

How does the speaker handle fun spending while budgeting?

The speaker advises maintaining a balance by tracking needs versus wants. They suggest not completely eliminating fun spending but being mindful of it, ensuring it aligns with financial goals while still allowing for enjoyment.

What advice does the speaker give for individuals who find budgeting overwhelming?

For those who find budgeting overwhelming, the speaker suggests starting simple. Focus on tracking spending first, without putting pressure on setting a perfect budget. As you get used to tracking, it becomes easier, and the process feels more natural.