How to Make a Budget That Actually Works for You

Summary

In this insightful episode, the host emphasizes the importance of budgeting, especially for those with irregular incomes. She introduces the 'Baby Steps' for financial health and recommends tools like 'Every Dollar' to track expenses. The episode features a couple's journey in overcoming financial challenges through consistent budgeting, highlighting the transition from feeling trapped to gaining control over their finances. The discussion underscores the value of teamwork and planning in achieving financial goals and the peace of mind that comes with it.

Takeaways

• 📈 Start with a bang: The speaker encourages viewers to start the year with a plan, emphasizing the importance of budgeting for financial success.
• 💰 Baby Steps: The script introduces 'Baby Steps,' a seven-step plan for financial management, ranging from building an emergency fund to building wealth and generosity.
• 👫 Budgeting Together: It's crucial to get your spouse or partner on board with budgeting, as it involves mutual commitment and understanding.
• 🔢 Budget Basics: The essence of budgeting is ensuring that your monthly income minus expenses equals zero, with every dollar assigned to a specific category.
• 📝 Tracking Expenses: Keeping track of where your money goes is essential for creating an effective budget and making necessary adjustments.
• 🚀 Overcoming Challenges: The script acknowledges that budgeting can be challenging, especially with irregular incomes, but perseverance leads to financial control and peace of mind.
• 💡 Mindset Shift: A budget is not just about cutting expenses but gaining control over your finances and making intentional financial decisions.
• 👥 Team Effort: Budgeting works best as a team effort, with both partners contributing to the financial plan and supporting each other.
• 📱 Budgeting Tools: The use of budgeting apps, like EveryDollar, can simplify the budgeting process by connecting to bank accounts and categorizing transactions.
• 🔑 Key to Success: Consistency in budgeting is key, and over time, it becomes a habit that provides financial security and clarity.
• 🎯 Setting Goals: Setting financial goals together as a couple can strengthen the relationship and provide a shared sense of achievement.

Q & A

What is the main focus of the episode discussed in the transcript?

The main focus of the episode is on creating and effectively using a budget to manage personal finances, with a specific emphasis on helping those with irregular incomes.

What are the 'Baby Steps' mentioned in the transcript and what do they entail?

The 'Baby Steps' are a financial plan consisting of seven steps: 1) Starter emergency fund of $1,000, 2) Paying off all debt except the house using the debt snowball method, 3) Building a 3-6 month emergency fund, 4) Saving 15% of income for retirement, 5) Funding children's college, 6) Paying off the house early, and 7) Building wealth and being generous.

How does the speaker describe the difference between her and her spouse's approach to budgeting?

The speaker describes herself as a 'free spirit' who was initially more of a spender and less interested in budgeting, while her spouse is a 'nerd' who loves organizing, details, and enjoys the process of budgeting.

What is the recommended approach for someone with an irregular income when creating a budget?

For someone with an irregular income, the recommended approach is to project income as closely as possible, consider known upcoming payments, and use a miscellaneous category for unexpected expenses. It may take a few months to get a footing and adjust the budget accordingly.

What is the significance of the 'Every Dollar' app mentioned in the transcript?

The 'Every Dollar' app is significant as it helps users connect their bank accounts and automatically categorize transactions, making the budgeting process easier and more visual, which is particularly helpful for those who find budgeting overwhelming.

What is the importance of having a miscellaneous category in a budget?

A miscellaneous category in a budget is important as it serves as a catch-all for unexpected or irregular expenses that don't fit into regular budget categories, providing flexibility and preventing overspending in other areas.

How does the speaker suggest getting a spouse on board with budgeting?

The speaker suggests getting a spouse on board with budgeting by showing them the numbers, emphasizing that a budget gives freedom and control over spending, and assuring that there will be grace and a team effort in the budgeting process.

What is the role of term life insurance in the financial plan discussed in the transcript?

Term life insurance is recommended as a cost-effective way to protect one's family, with the speaker suggesting it over whole life insurance due to the significant cost difference, allowing more money to be allocated towards paying off debt and funding emergency funds.

What is the mindset shift suggested for those living paycheck to paycheck?

The mindset shift suggested for those living paycheck to paycheck is to start thinking ahead and living a month ahead, which requires having some money in the bank to cover expenses and plan for the upcoming month's needs.

How does the speaker describe the feeling of budgeting after consistently doing it for a long time?

The speaker describes the feeling of budgeting after consistently doing it for a long time as satisfying and integral to their financial management, emphasizing the sense of control and safety it provides.

Outlines

00:00

📊 Introduction to Budgeting for the New Year

The video script opens with a discussion on the importance of budgeting, highlighting that 60% of Americans do not budget and emphasizes the need to start the new year with financial organization. The host, Rachel, shares her journey of creating a budget that works, especially for those with irregular incomes. She introduces the 'Baby Steps' financial plan, which consists of seven有序steps designed to help viewers manage their finances, from establishing an emergency fund to building wealth and being generous. The script also touches on the psychological aspects of budgeting, explaining how it can be challenging to get started but ultimately rewarding.

05:01

👫 Balancing Budgeting with Spouse's Different Attitudes

This paragraph delves into the personal aspect of budgeting, describing the dynamic between 'nerds' who enjoy budgeting and 'free spirits' who may initially resist it. Rachel shares her own experience, being a 'free spirit' married to a 'nerd' who loves budgeting. She provides advice on how to get a reluctant spouse on board with budgeting, emphasizing that a budget provides freedom by allowing for intentional spending. The paragraph also discusses the importance of grace and patience when introducing a budget to a partner who may not be as financially organized.

10:03

🏡 The Importance of Life Insurance in Financial Planning

The script shifts focus to the importance of life insurance as part of a comprehensive financial plan. Rachel recommends term insurance over whole life insurance due to its cost-effectiveness. She provides an example of the cost difference for a 30-year-old male and mentions ER insurance as a trusted provider that can help find the best insurance options tailored to individual needs.

15:05

🔢 The Basics of Budgeting: Simple Math and Assignment of Funds

The paragraph simplifies the budgeting process to basic math: monthly income minus expenses should equal zero. It acknowledges the challenge of budgeting, especially for those with varying incomes, and suggests using tools like the 'Every Dollar' app to track and categorize expenses. The script provides a step-by-step approach to creating a budget, from determining monthly income to listing and averaging expenses over the past few months. It also addresses common issues like unexpected costs and the need for a miscellaneous category to accommodate them.

20:06

🚧 Overcoming Challenges in Budgeting with Irregular Income

This section addresses the specific difficulties faced by individuals with inconsistent incomes, such as freelancers. It discusses the need for a mindset shift towards planning ahead and living a month ahead financially. The paragraph provides insights into how to adjust to income fluctuations and the importance of having a financial cushion for slow months. It also touches on the psychological impact of budgeting and the necessity of making sacrifices to align spending with income.

💑 Couple's Testimonial on Budgeting with Inconsistent Income

The script features a testimonial from a couple who successfully implemented a budget despite their inconsistent income. They share their initial struggles, the process of getting on the same page, and the eventual benefits of budgeting. The couple discusses the importance of teamwork, using resources like the 'Every Dollar' app, and the peace of mind that comes from having control over their finances. Their story serves as an inspiration and a practical guide for others facing similar challenges.

🛠 Tools and Tips for Budgeting with Irregular Income

The final paragraph offers practical advice for those with inconsistent incomes, emphasizing the importance of tracking expenses and making necessary lifestyle adjustments. It suggests projecting income as accurately as possible and prioritizing essential expenses. The paragraph also highlights the value of having a support system and using tools like the 'Every Dollar' app to facilitate the budgeting process. It concludes with a reminder of the peace and control that come from sticking to a budget, even during challenging months.

🎉 Conclusion and Encouragement for Budgeting Success

The script concludes with a summary of the key points discussed in the video, including the importance of budgeting, the use of tools like the 'Every Dollar' app, and the transformative effects of budgeting on financial health and marital harmony. Rachel encourages viewers to subscribe to her show and podcast for more financial advice and reiterates the message that budgeting leads to a more controlled and fulfilling life.

Keywords

💡Budget

A budget is a financial plan that allocates future income toward expenses, savings, and debt repayment. In the video, the concept of budgeting is central to achieving financial goals and stability. The script emphasizes the importance of creating a budget that works for the individual's financial situation, whether they have a regular or irregular income.

💡Baby Steps

The term 'Baby Steps' refers to a series of seven financial steps designed to help individuals manage their money effectively. Introduced in the script, these steps range from establishing an emergency fund to building wealth and being generous. They serve as a roadmap for financial health and are part of the video's theme of taking control of one's finances.

💡Emergency Fund

An emergency fund is a reserve of cash set aside to cover unexpected expenses or financial emergencies. The script mentions it as 'Baby Step One' and later as a 'huge emergency fund,' highlighting its significance in personal finance as a safety net to avoid debt during unforeseen circumstances.

💡Debt Snowball

The debt snowball is a debt repayment strategy where one pays off debts starting with the smallest balance first while making minimum payments on larger debts. In the script, 'Baby Step Two' involves using the debt snowball method to eliminate all debts except for the house, illustrating a systematic approach to becoming debt-free.

💡Irregular Income

Irregular income refers to earnings that vary in amount from month to month, making it challenging to create a consistent budget. The video addresses this issue and provides strategies for budgeting with an inconsistent income, such as planning ahead and adjusting categories as necessary.

💡Zero-Based Budgeting

Zero-based budgeting is a method where every dollar of income is assigned to a specific category until the total income is zeroed out. The script mentions this concept as a way to ensure all income is accounted for and to avoid living paycheck to paycheck, emphasizing the importance of intentional financial planning.

💡Miscellaneous Category

In budgeting, a miscellaneous category is used to allocate funds for unexpected or irregular expenses that don't fit into regular budget categories. The script suggests using this category as a 'catch-all' for unforeseen costs, demonstrating flexibility in budgeting for varying income months.

💡Every Dollar App

The Every Dollar App is a budgeting tool mentioned in the script that helps users track their expenses and manage their budget by connecting to their bank accounts. It exemplifies the use of technology to facilitate the budgeting process and make it more accessible and user-friendly.

💡Term Life Insurance

Term life insurance is a type of life insurance that provides coverage for a specified term, with a lower cost than whole life insurance. The script recommends term insurance as a cost-effective way to protect one's family financially, without the investment component of whole life policies.

💡Financial Peace University

Financial Peace University is a program designed to teach individuals how to manage their finances effectively. The script mentions it as a resource that includes the Every Dollar App for free, indicating it as part of a comprehensive approach to financial education and budgeting.

💡Consistency

Consistency in budgeting refers to the regular practice of tracking and managing finances over time. The script highlights the importance of being consistent with budgeting practices, even when facing challenges, to achieve long-term financial stability and peace of mind.

Highlights

60% of Americans don't budget, emphasizing the importance of addressing this issue.

The start of a new year is an opportune time to begin budgeting and setting financial goals.

The Baby Steps are a proven plan with seven steps to help achieve financial goals.

Creating a budget that works involves assigning every dollar to a category.

The importance of getting a spouse on board with budgeting for a successful financial plan.

A budget does not limit freedom but rather provides it by allowing intentional spending.

The need for grace and patience when discussing budgeting with a free-spirited partner.

The simplicity of budgeting is described as fifth-grade math, where income minus expenses equals zero.

The use of the EveryDollar app to simplify the budgeting process by connecting to bank accounts.

Adjusting to budgeting with an irregular income by planning ahead and using a miscellaneous category.

The challenge of living paycheck to paycheck and the mindset shift required for successful budgeting.

The reality check a budget provides, which may lead to necessary lifestyle adjustments.

The long-term benefits of budgeting, even for those with inconsistent incomes.

The story of a couple who overcame initial budgeting challenges to gain financial control and peace of mind.

The importance of tracking expenses and making necessary lifestyle changes for better financial health.

The collective effort required in budgeting, especially when income is inconsistent.

The positive impact of budgeting on a couple's relationship and financial stability.

Transcripts

did you know 60% of Americans don't

budgets it's time to fix that so in this

episode we're going to talk about how to

make a budget work for you

[Music]

all right

it's 2020 I cannot believe it the start

of a new year now remember I shot some

of these videos before I went on

maternity leave so yes I am still

pregnant but when you look back and

reflect over the last year I don't know

about you but it flew by and I feel like

I didn't get everything done last year I

wanted to get done so to start out 2020

I want us to all start out with the bang

and hit the ground running so if you're

like most people you're trying to get

your money in order so in this episode

we're gonna go back to the basics I'm

gonna show you how to create a budget

that actually works for you and I'm

gonna bring a couple on to talk about

how they budget on an irregular income

which is a huge problem for a lot of

people now when you look at people's top

New Year's resolutions paying off debt

and saving money is always at the top

and here's the good news we have a

proven plan to help you achieve those

goals

so if you follow our plan at all you

probably are familiar with the baby

steps for those of you that are not

familiar there are seven steps that you

do in order with your money so really

quickly baby step one is a starter

thousand-dollar emergency fund baby step

two is paying off all of your debt but

your house using the debt snowball baby

step three is saving three to six months

worth of expenses a huge emergency funds

baby step four is saving fifteen percent

of your income into retirement baby step

5 is funding kids college baby step six

is paying off the house early and then

baby step seven is building wealth and

being extremely generous so those steps

in that order now it can seem

overwhelming but again you just start

with the first baby step but the

beautiful thing is no matter where you

are on the baby steps you have got two

budgets

[Music]

all right the budget is great the budget

is awesome I love the budgets and you

may be watching this video and you're

thinking yes I agree with you Rachel but

my spouse I have to get them on board

listen I get that because Winston

actually had to get me on board to do

the budgets because here's the thing you

marry your opposite and so Winston in

our relationship is actually the nerd

he's the one that loves doing the budget

he loves to be organized he loves

details he can like get in it and

analyze it and loves it and I'm more the

free spirit

where I'm like listen it's all gonna

work out let's just have some fun and

I'm a spender on top of that so it's

gonna be fine don't worry about it so

that that's all good and dandy when

you're on a budget you have boundaries

and restrictions and you're mature and

you like take it seriously which I am

now but ten years ago that was not

always the case

and so getting your spouse on board is

huge so let me just say out there for

all of you nerds that are watching this

video and again you nerds love doing the

budget so I'm not worried about you

doing the budget because you're probably

already budgeting but when you're

talking to your free spirits a couple of

things to remember tell them that a

budget does not limit their freedom a

budget gives them freedom in fact a

budget gives you permission to spend and

you actually get to say hey this is

where we want to spend our money because

you get to create your budget you get to

decide where do you want your money to

go and so that's the beautiful thing now

will there be sacrifices and boundaries

and limits involved possibly yes

depending on where you are financially

but when the free spirit sees the

numbers down on paper or visually

wherever that is it's going to help them

see it and tell them hey we're gonna

have a lot of grace in this conversation

cuz you nerds out there watching I'm

sorry sometimes you're just being real

followers and you don't give us a lot of

grace and so you have to chill nerds

chill a little bit and tell your free

spirit listen this is not gonna be a

perfect process but let's work on it

together so free spirits and nerds

night the beautiful thing when it

happens

and it is possible I'm telling you it

all right coming up next let's talk

about how to actually do the budget

[Music]

family is one of the most important

parts of my life and making sure

everyone is taken care of is a top

priority that includes more than just

meal planning entertaining the kids and

taking care of all the day-to-day needs

that's why I recommends having life

insurance now when you're shopping for

it you might wonder should I get term

life insurance for whole life insurance

I always recommend term insurance it's

going to save you tons of money that you

can put towards paying off your debt and

funding your emergency fund for a

30-year old male a 20-year $250,000

policy would cost us $15 a month for

term life however the same policy for

whole life would be a hundred and ninety

dollars per month that is a huge

difference Winston and I used and ER

insurance they do all the work for you

by finding you the best prices and

options customized to your needs to

learn more call Xander today or go to

Xandar comm because that's who we trust

to take care of our family

all right simple budget you guys this is

all it is are you ready for this fifth

grade math your monthly income minus all

of your expenses should equal zero so

every dollar coming in is assigned to a

category now that's easier said than

done okay because here's the deal

there's a lot of moving parts and if

you've never done a budget before it's

gonna be very very overwhelming so the

first thing you have to do is figure out

what do you make a month some people

it's different every month so we'll talk

about that later on in the episode but

for most of you it's like okay yeah

here's your salary you know exactly what

you're going to make so dig in and

figure it out after taxes this is

take-home K what are you bringing in the

door every month figure out the number

and then you're going to list out all of

your expenses so this is everything from

rent or your mortgage to food groceries

restaurants your cell phone your

insurance pet care like I mean anything

that you spend money on list it out and

then put dollar amounts like say each of

those categories now your first month

doing a budget go back and look the last

like three months and just kind of

average out okay here's kind of what

we're spending on food here's kind of

what you know this is what our insurance

payment looks like just get a ballpark

to at least get some numbers down and

then what you may realize as well we're

spending a lot of money because we have

not been purposeful which means you're

gonna adjust some of those categories

which is totally fine for that first

month but again your goal is that income

minus all the expenses will equal zero

every dollar has a name okay and so

stick with this because every month is

gonna look different so I'm telling you

you have to put it though visually

somewhere this can be on a sheet of

paper or you could use every dollar

which is our budgeting app and it's

amazing seriously I love every dollar

every dollar plus connects to your bank

account so when you swipe your debit

card automatically those transactions

come in the app and you can drag and

drop them into the correct categories or

if you're taking cash out of the bank

then that'll come up you know be like

okay yes

you know $200 went to food here and you

can break it out and oh it's it is like

I'm telling you as a free spirit even

though I'm a free spirit it's one of the

most satisfying things in the world when

you see that little bubble pop up and

they every dollar up and you get to drag

and drop and it does the math for

then I start subtracting your carries

you do the math I mean it is

unbelievable it won't change your

budgeting game so download every dollar

do your first budget and the great thing

is here at Ramsey solutions we have

solutions for you we help you so even

within the app we have so much there to

talk about how to do the budget so dig

in there look and see because this is

huge now a budget can get complicated

because there are a lot of problems that

people come up with so one problem I

hear a lot is well Rachel every month is

different so I really can't plan ahead

I'm sorry yes it is different welcome to

the world yes everyone's month is

different guys like Bette is life and so

what you do is you do the best you can

you look ahead and say okay we're going

on vacation so we're gonna put Nala our

dog you know at the vet for seven days

how much is that gonna cost room put

that in every dollar I mean you have to

actually take the time and intentionally

look ahead now are there things that are

gonna come up throughout the month that

you forget about yes that's why we have

a miscellaneous category mm-hmm your

nieces birthday comes up and you forgot

it's a princess tea party and you need a

gift

thank you miscellaneous category just

put it in there right I mean like it's

all there for you that's your catch-all

guy now if you notice that your

catch-all things keep being the same

thing that means you need a budget for

those that needs to be its own category

then so it's gonna take some time but

yes you have to plan ahead and if it's

your first time budgeting it's gonna

take 90 days for your budgets work

give yourself some grace figure out what

your months look like and just say okay

this is what we're doing now another

problem I see is that people that are

living paycheck to paycheck and they're

using their credit cards to pay for

bills may not have enough money in their

bank accounts to plan for the month

ahead so this is gonna take a mindset

shift okay if this is you because you've

been functioning in the past you've been

functioning up say okay I mean paying

bills on things that have already

happened in the past but what you have

to do is you have to be thinking ahead

which means yes you are gonna have to

have some money in the bank

in order to live this way because you're

basically living a month ahead so your

paycheck comes on the 31st or the first

take that amount say okay this is what I

have until my next paycheck and cash

flow as much as possible and maybe you

take a month between now and doing your

first budget and just save as much as

you can to have some buffer there now if

you find that you cannot get ahead

financially then you're gonna look and

say okay maybe I have an income problem

versus a budgeting problem and you may

have future income up which is really

hard but in the moment it's gonna be so

worth it because you're able to function

that month ahead by doing the zero based

budgets

another problem I see people have is

that a budget is just defeating like

doing a budget they just it's just so

hard every single month and I do see

people with this because it's a draining

process because they're not making

progress it's like a budget is not

exciting and fun because what it is it's

revealing the problems that they have

and so the problem may be that their

income is too low or their lifestyle is

just too high and so there's gonna have

to be some adjustment there it's kind of

this reality check is what a budget is

for some people where they say wow we

really have been living way beyond our

means and so we're gonna have to be

uncomfortable for a while and sacrifice

our lifestyle things we're not used to

sacrificing in order to get this correct

because listen we're not in Congress

like we can't just keep spending money

you guys like we have an income a set

income every single month each of us

does you have to budget within that and

that's how you're gonna get ahead

financially you will never be able to

live above your means and win over the

long term it's just not gonna happen and

so it's a hard reality but I'm telling

you once you get the budget under

control and you say oh wow our income is

absolutely funding the lifestyle that we

have now then you start to gain traction

you start to gain control but a budget

isn't easy I'll be the first to a minute

it can be really hard but the beautiful

thing is the more you do it and the more

consistent you are it becomes a habit in

me I can't believe I'm saying it but ten

years after doing a budget consistently

the free spirit I don't know what I

would do without a budget I'm not gonna

lie to you my bank account did not

connect to every dollar for about two

days two days ago and I could not track

transactions and I was like I don't know

what's happening what's happening

that would never have been made 10 years

ago you guys that's me doing a bunch of

every single month it becomes a part of

who you are and there's such safety in

it I'm telling you the best way to get

ahead financially is to be intentional

all right coming up next is a couple who

had a tough time with budgeting but they

stuck with it and they're gonna share

their inspiring story I felt trapped

like I had no say in where our money was

going I mean I just felt kind of

oblivious you know we get toward the end

of the month and I'd be like why do we

only have hundred bucks in our bank

account

[Music]

I've always been budget conscious I've

always been aware of the finances I've

always sort of managed the finances and

it was easier to just do it and not talk

about it and avoid any potential fight

so it was just manage it and move on

I was just finally so fed up and we had

started communicating better about it I

think we both knew that a change had to

be made but I think I was a little more

reluctant it's not that I didn't want to

budget or to make a difference it's just

like at the time I really didn't think

it was necessary

but once we both got on the same kind of

same track it really sort of opened open

the door for us our income can vary up

to $7,000 a month and that's crazy to

try to manage you can't just say what's

my annual gross and divide it by 12 and

then live that way it just doesn't work

with our inconsistent income it felt

like we can't do anything about it this

month we can't we don't have the income

so we're gonna charge it and then we're

gonna deal with it when the income comes

in it took us a few months to figure it

out and I mean the whole budget was

completely crazy like it was not even

close to where it needed to be I had no

concept of what we were spending where

but we didn't add to death that month

and that was such a huge win for month

one once you change your your mindset or

your even your collective mindset and

you really look at this is like not that

you're losing something but that you're

you're gaining something much bigger

which is like this peace of mind it's a

complete game-changer

now that we're budgeting I really feel

more in control it's done wonders for

our relationship and for our pocketbook

too even though we have an inconsistent

income I feel free I feel like I have

control over where my money is going and

it honestly feels like we have more

money to spend because we're telling our

money where to go

thank you guys so much for coming on

really appreciate it so when we talk

about budgeting it is a tough topic

anyways but you add in consistent income

on top of it and it's really difficult

doesn't it really difficult yes so I'm

in that boat you guys are in that boat

so let's talk about it

yeah you guys start a budgeting so I'm

curious just what made you start

budgeting in general so we've always

been aware of how we should handle our

money but our most recent get serious

moment just came from looking at the

numbers and being like we're done

like we're not where we're gonna buckle

down on this again and we're gonna make

it happen

yes cuz we've been debt-free but then it

all came back so yeah yeah you come back

so and so you looked and you said okay

we're done young we have to get out

again and the budget is like the main

tool right yeah help us do it so when

you started budgeting again did you feel

the freedom come not at first it's hard

at first you fall into the normal traps

of well with my income I can't make this

budget because this month is a slow

month that I don't even have enough for

the four walls but if you look big

picture and after a few months it

started to fall into place yes okay so

what was the biggest hurdle would you

say when it comes to having an

inconsistent income and budgeting I mean

it's all like the big changes that have

to come like all the small you know no

coffee trips in the morning just like

all the small little lifestyle changes

they tend to be a little annoying at

first yeah and then but I mean I think

when you really start to work at it as

like a team and focus like hey we're

doing this together this is you know

we're making all these big changes now

so that we can make bigger cooler

awesome changes later on and just get

our family in a more financially healthy

position totally yes so when you start

budgeting and you realize okay then

consistent income it's a real thing

numbers are changing every month we

don't know how to predict it and it is

hard how many months would you say it

took to kind of get a footing and kind

of get your groove I would say probably

about three okay um and I don't think we

could have done it if we didn't like

have all of the

sources that we had and supportive

people around us to help us do it yes so

what resources were those homes we

started with your 14 day challenge oh

yes the 14 a money fine there it was and

that gave us enough to create like a

little bump so that was great getting us

rolling and then we got the every dollar

app got it upgraded and that has been

super useful because before that I was

literally writing down everything like

writing it down from our basic it was

ridiculous yeah it's hard right you see

the convenience of like oh this happen

so great yes

so I know for I can speak for Winston on

myself because we do this and it's like

some months you're like oh man it's just

lower than you're expecting you have to

go in change the numbers so months it's

bigger and you're like oh that's nice

yeah like those months so do you still

feel that that you have to change it

month to month

because of not just life changes within

your expenses but also because of your

inconsistent income yeah yeah I

definitely think we make we have to make

a lot of changes and be very aware of

not just like what is in this month but

what do we have like three or four

months down the road do we have to

prepare for like you know yeah and with

the income fluctuating it's it's a it's

a challenge yeah so tell so people that

are watching okay so how are you doing

yeah what would you say like whatever

any tips like you look yeah I'm gonna

just project as close as I can of what I

think we're gonna make very money we

know is coming okay because sometimes we

have freelance jobs or commissions that

we know are gonna come in at certain

times and so those are projected out and

then I look forward on the assumption of

okay there will be more there will be

stuff that we don't know of yet you know

so it's more of like saying these are

the things that are necessary these are

the things that come next if it comes in

and if not we roll them to next month

and then these are the things that come

after that and we're in baby step two so

then everything else goes to debt yes so

the things that are necessary yeah I'm

watching it's what we called the four

walls image not earlier so food shelter

utilities and transportation but some

months still it's not even enough for

the four walls it's important that I

have that

the little bit of bump already in our

checking account so that I'm not going

all the way back into our emergency fund

or something in the event that we have a

slow month yeah I think that's a great

point because on those slower months you

know you have to be able to make sure

your bills are paid so you have to have

that cushion so on the months that are

good yeah setting some of that money

aside and making sure you have that

cushion is such like that's such a pro

tip yeah okay so someone watching

they've never budgeted before oh and

they're thinking okay how do you start

it maybe they do freelance work I mean

they they're they're you know income is

so inconsistent like what's the number

one thing you would say you have to do

this track your expenses because when

you see where your money's going you

change where your money's going like

when you see that you're spending too

much money at chick-fil-a you say okay

we need to make chick-fil-a an occasion

situation and not a convenient situation

or you said okay I need to start making

my coffee at home instead of stopping at

the gas station or the Starbucks every

day it's liberating to have this feeling

of control mm-hmm over what like with

all of the the income that we just don't

know there's just there's this feeling

of helplessness sometimes especially

when you get in those low months and

just being able to grab some of that

control back and being like this is not

gonna change my mood I'm not gonna you

know we're not gonna argue we're over

money like you know understanding that

you're not telling me that I can't have

coffee in the morning you're just like

showing me that two dollars every couple

of days you know 52 weeks out of the

year like that that adds up to a lot of

money over time and seeing that I've

been doing it for four or five years I'm

like that's that's a vacation at the end

of the day or you know something

important that we need to buy school

supplies whatever but I mean it's got to

be a team it's gotta be a team effort I

love that and there's usually one spouse

that's not always on board but I get

that question all the time how do I get

my spouse on board yeah and you did one

of the things I always tell the spouse

that is on board usually the nerd you

know is to run the numbers and like to

visually be able to see that this is

what's happening so would you say that

helped you a ton for sure

100% I mean being able to see the

numbers and they may have done some

floating and stuff like that but like

when you see the colors help you know

she put deficits in red I understand

colors you know as a illustrator artists

I'm like this makes sense to me there's

a lot more red on here than there is

green so that's you know what saying

those those three months of getting

lined up getting on the same page was a

big part of that yes and so how does

that changed your marriage in general

oh it's so much more peaceful I mean

everybody fights about money it's the

number one what marital dispute is money

yeah so I mean that's that's been huge

yeah and it the achievements are our

achievements their wins together and

that feels good I love that working

towards a goal and it sounds cheesy like

set a goal together but truly when you

are and you hit it it's like we took

that yeah we did that as a team yeah you

guys you are like it is it's amazing

it's amazing just seeing people that

stick to the plan they do it persevere

even when it's hard yeah and there's

months that it's like what and the heck

are we doing but you stick with it

because at the end of the day you're

getting that piece you're getting that

control and ultimately you guys together

alright have a stronger marriage because

of it yeah yeah you're like a living

testimony to its really amazing

seriously thank you so much for coming

on it's like it's just filled with hope

and you're doing exactly what you should

be doing and I love it and I'm glad

you're getting the wins that's the best

words all right you guys we mentioned it

like eight times in there but it's true

every dollar plus if you've not checked

out that app make sure you do that now

if you sign up for or Financial Peace

University you actually get the app for

free so make sure you do that cuz it's

gonna help your budgeting journey be so

much smoother

[Music]

man I love that Sarah and Cory is stuck

with it and got their money under

control and they figured out how to make

their budget work now if you have an

irregular or inconsistent income I have

a worksheet in the show notes that will

help you budget for it now don't forget

to subscribe to the show and to my

podcast just search the Rachael Cruz

show I hope you guys found this episode

helpful because once you get budgeting

down everything else works so much

better as always remember and take

control of your money and create a life

you love