Hi guys, in this video, we're going to be talking about budgeting, what is budgeting?
How does it work? And why is it important to you?
So first things first, what is budgeting? Well, budgeting is the thing that you constantly
don't think about, we all talk about it. But it's one of those things we like to pretend
isn't actually there. So you need to break budgeting down into steps that are appropriate
for your life. So there's the holiday that we'd love to go on. But you know, are we budgeting
for some clothes that we wanted by next week? Are we budgeting to pay off a loan and to
pay off a mortgage? Or do you want to just save for something in general? So now that
we've taken the time to actually think about what a budget is for you, let's have a look
at the steps or the process that you can put in place. Now everybody has a different process.
It could be on post it notes, you could be writing it and sticking to the wall or keeping
an Excel. Let's have a look at what are you actually spending first and how much money
do you earn, put those as categories. Then from there, we want to highlight the things
in your life that you have to spend money on. There's your rent, there's your food,
there's your petrol. For some people like myself, there's my Netflix account in my stand
right, they're essentials. Now what you want to do is highlight the different categories
of things that you actually want to save for, is there something that's been on your mind?
Is there a course that you want to do? Do you want to go to SeaWorld and swim with the
dolphins? So you need to know where you want to get to or the things that you want to buy
mixed in with the stuff that you actually have to pay for. Now, itemise each one of
those key pieces so that we can actually track what are our spending categories. So why is
budgeting actually important? Yes, we can put these categories in place. But you have
to understand the emotional context behind what you're trying to do. We need to achieve
certain goals in our life just to keep sanity. Otherwise, we're working every day to spend
the same amount of money on the same amount of things. Money will disappear without a
budget. It's very easy to go out on the weekend, and, you know, spend the balance of the money
that you had for the week. Once we budget for things and we achieve things in our life
and memories and blocks, we feel like we're getting ahead. So what does budgeting actually
teach us now it only teaches us something if we set our tasks we follow through, and
we attain the things that we set out for but what it actually teaching you behind it, and
just such as simple goals, buying a new TV, getting that new outfit going on that holiday.
But what it's done now is it's taught you what is the value of your money and to track
your money. This leads to all types of things, this helps you start to save for a house deposit,
or an investment or something that'll start benefiting your life in the long run. So often,
it's about tricking ourselves into these little tasks and tactics to achieve the things that
we want to in the future. Start small, start granular and just get some wins on the board.
And you'll find you start to become a little bit more addicted in being in control of what's
happening in your life and funding in your life. So what happens when budgeting goes
wrong now doing not to be too hard on yourself. Budgeting goes wrong frequently and often.
And it takes a while to get used to the process and to keep yourself schooled in the things
that you need to do. I have always been a victim to this myself, I'll set a nice goal.
And then you fall short. What you need to be careful of is you do not get discouraged
things come up. And sometimes it's hard. There's other things in your life that will come across
a wedding, a funeral, a birthday that you have to dip into your budget or just general
life stuff. Just make sure that you know that that's for you or it's an essential part of
you know, just life. So even when budgeting goes wrong, do not be demoralised, and make
sure that you just come back around to it because it's your budget for you. Thanks for
watching, guys. And if you'd like to find out more, please follow or come and see me
at shaunfox.net or any of my social medias. We're on all of them. Have a great day.