Man how you supposed to save money on a tight budget right?! I'll tell you what. I
know what poor feels like. I know what Poe feels like and I've also been able
to travel the world. Becoming a self-made multi-millionaire, figuring out who I am,
what my life purpose is. I tell you what, knowing Taj Mahal and stepping onto the
great pyramids in Egypt and having been in Phuket some of the nicest beaches on
the planet been in Bora Bora. I'll tell you that budgeting at one point was one
of those really critical key aspects of figuring out how to let the rest of my
life become everything it's become. Kris Krohn here with Limitless TV and I'm
going to share with you my number one tip on how to budget like a boss to help
you step into this amazing life that you want to live.
So I'm going to share with you in a moment my 4 envelope system. My wife and
I developed this back when we were newlyweds when we didn't have money and
yet we found a goal something truly worth saving for. In fact, the first
mentor that told me what I needed to do to make my first million dollars
required me to put five thousand dollars in my savings account and work on
actively establishing my credit. Those were the two things that I had to do. And
for a 14 month period of time, before I hit that goal, I needed to find a way to
put $5,000 together when I didn't have two pennies to rub together. And I want
to share with you when we first got married, we were looking for examples on
how do we budget. And my wife, her parents financially did really well but came
from very frugal background and they did this, they had all of these amazing
uphill in the snow both ways stories about how poor they were when they
started out their life kind of like my wife and I did. And we developed a system
from it called KPPPM because we were poor. In fact, we were probably more like
poo because you couldn't afford the R. I kid you not. This KPPPM means
cleanse parents penny-pinching month. Cleanse parents penny-pinching month. In
fact, they got this one story where they had saved up money for this two-dollar
can of Lawry's seasoned salt and baby Ben had knocked it over and spilled the
salt out and it ended up being this this traumatic thing of oh my gosh we save
this money we bought this this luxury item of seasoned salt and been it's gone
to waste. And they had stories like this. They, they and they have the banana box
house. This was a house where their baby, the crib was about a box it was a banana
box and that's what they actually made his bed out of and Kalenn and I were
really inspired by that and realized that, if we were going to save this $5000
and frankly whatever it is you need to stay fourth we needed to
kind of pull money out of thin air. How are we going to do that? So we would
establish a cleanse parents penny-pinching month which meant
work that we were going to become wise stewards in how we allocate our
resources and I'm going to tell you right now your resources can stretch way
further than they currently might be depending on
mindset and it's going to start with the belief that you have plenty and enough
to spare. And I can invite you to write that one down. I got plenty of enough to
spare because that's going to create some room for a margin to start setting
money aside for whatever it is you need. And so with that let me share with you
my four envelope system.
Alright. so budgeting, you can turn it into a game
and you can make it fun and it requires just a little bit of organization. Once
you have your why and you know what you want so that you can aim that budgeting
for a purpose rather than just, listen budgeting for the sake of budgeting? Man,
give it direction, give it aim, and give it a purpose. And then Kalenn and I, when we
got started we used the four envelope system. We had four physical envelopes
and what we would do is we would divide all of our money into number one,
personal use. Okay personal use was, what we were going to be consuming our money
on every month. Personal use was food and gas and our monthly expenses. Number two,
there was an investment envelope which was we're investing in our future.
We can't live paycheck to paycheck our entire life or just get ahead a little
bit. We decided the incremental growth was never going to get us where we
wanted to go so eventually we were going to have to invest in us and we're going
to have to invest in, investments like real estate and business and other
things. So even if we were, even if it's just a dollar a month or ten dollars or
$50 that's a start with putting money towards your investment envelope. Number
three, savings. This is also really important. Eventually, if we can save a
little for a rainy day we start creating peace of mind. We make it easier to
choose out of scarcity. So every month, money would go into savings and then
number four, charity. And you know my wife and I, in our religion, we pay a 10%
tithing. This is one of the ways that that we give and that money gets to go
towards really good causes. We believe in and do a number of other charitable acts
and it's this idea that says, all the things that we have is it really ours?
let's make, let's pay it forward and let's make an investment into other
people, into the universe, organizations, institutions and circumstances. So this
four envelope system no matter how much money you have
every month the idea is and in the beginning with the tight budget a lot of
it might be going to that personal category which is what do we need to
sustain our household. Number two, get something in that investment envelope. If
you're not making enough money and moving backwards, put that money in your
investment. You don't invest when you have surplus. Investing is a priority. It's
more important than your cellphone bill, it's more important than your home bill,
you have to invest in yourself. Because when you don't, if you don't have a plan
for it, how you're going to ever get out of your circumstance? you need to do
something to go beyond. Don't just wait for things to change with time or for
the promotion to finally come. Make that an expense that is just as real as
paying off that credit card. Number three, savings. You've got to get your money set
aside to save so that should you get behind the 8-ball with something, you
have something to fall back on rather than panic. Because if you don't got
nothing, phone back on panic it's that fight or flight it gets your adrenaline
going and not in a good positive way. It's training your chemistry, your body,
your mind, everything to be in that space of lack and scarcity. When in fact, we
want budgeting this is why we need a positive aim to produce something
positive uplifting and free. And then finally, even if you don't got money at
the end of the month find a way to give. Find a way to give back because as
unfortunate as your circumstance might be or maybe you're in a great situation
but you're budgeting for something you really believe in, tithing, charity, this
is a way to practice detachment which is a way of letting go and releasing some
of the selfish or self-interest of what about me and what do I want and to know
that we live in a world where other people are in need and you'll like the
human being you become when you give back. And so I recommend that you
implement this four envelope system. Today in my modern day, Kalenn and I do it
with four different bank accounts and all the money that comes in it's going
to get allocated no matter what into those four and what that will do with
time is build a momentum. It's going to build growth because $100 a month set
aside for investments may not feel like a lot but when you get much it feels
like it's under control and when you're shifting out of scarcity and anxiety
and shifting into into your birthright of prosperity and to shift into
abundance then, oh tax return came in $2,100.
Let's put 500 towards our this month's investment account and boom there was a
great, there was a great bump there. Oh let's
get back a little more charity. Let's put that extra fifteen hundred dollars in
savings and instead of consuming it and living on it. This simple little system
that I'm sharing with you is not about how to budget it's more about why to
budget and the really big picture that starts with a belief that there's always
an excess amount of money at the end of every month to make sure that there's
money to set aside for savings, investment, and charity. And when you do
that it's your first steps of stepping into more of your prosperous life.
You know me and my team we put together, every now and then, one of our three day
wealth workshops to really help people. Take what you just started learning here
on budgeting and take it to a whole new level. Like how do you set money aside
and save? how do you step in to investing? and how do you step into a mindset of
prospering in abundance that can allow the birthright of prosperity to
really enter and flow through your life. And I want to invite you. Click the link below
and find out. And you know what? take that first little bit that you saved in your
investment envelope and come check out one of these events so that you can
educate yourself on how to get to your next level.