Welcome back. My name is Kris Krohn. And today, we're going to be talking about
budgeting. Now, at first this may not sound super sexy. But this is my promise:
By the time this video is done, you're going to understand the basics and most
important aspects of why you want to budget. And more importantly, how I can
show you how to turn that into loads of wealth in your life starting today.
So, check it out. We're having this conversation about budgeting. And I'll be
the first to tell you that at first it's like this is one of the most unsexy
conversations that we could have. There's very, very few people out there that
actually really like talking about budgeting. And those that do, they're
usually weirdos. So, if you like this conversation, I am calling you weird. Your
bizarre, your strange, you're kind of an anomaly. Then again, you want to be an
anomaly. You want to be out there. I'm telling all of you right now you want to
become weird by choosing to like budgeting. It took me many years to learn
that there are some things that are good for you like when your parents say eat
your vegetables, this is one of those conversations. At the end of this video,
I'm going to show you how budgeting can lead to enormous amounts of wealth. It's
actually a sexy exciting conversation. But you're never going to get there. And
you're never going to understand it if you don't just first choose... So, don't click
off. Yes, it's a video about budgeting. Hang tight. Geez!
So, this whole conversation is really about how do you... What is like the
approach to budgeting and why is it important and I'm going to break all that
down for you right now. So, check it out. When we have this
conversation about budgeting, I think one of the reasons why people hate this
conversation the most is because they automatically think, "Oh, this is where I
look at my income. And right now, I make $4,000 a month." And now, what you're going to
do is you're going to you want me to really break down how I spend this money. You
want me to say things like, "Well, I spend $1,000 a month on my rent." And then you
want me to say that I spend $350 a month on my
car. And then I'm also spending $400 a month on food. And I'm spending $200 a
month magically on coffee. And on and on and Netflix and all the different things.
And we start breaking it down. And here's why it's such a disheartening
conversation: You work your butt off, you make this money and at the end of the
day, there's going to be a number here. And this is the part that scares some
people. For example, if this number were $2,000 a month of total
expenses, but you are making $4,000 a month, how would you feel? Dude, you'd
probably be a bigger natural fan of budgeting. Because you're like, "Haha! I got
2 grand left over. I make 4, I spend 2. I got 2 grand left over." But let's
just say for a moment that it wasn't $2,000 left over. Let's say
that at the end of the month, what you really had was $4,300 a month in
expenses. This means that you're probably adding $300 a month of credit card debt.
Most people are living plus or minus 10% of the money they make. It's called
Parkins law. It basically says you're going to make plus or minus 10% of what you
make. So for example, if I make eight thousand a month, I'm probably spending
right around 8,000 a month. If I make 50,000 a month, I'm probably
finding way to spend around 50,000 a month. I'm going to tell you
right now that if this is why the conversation of budgeting is so
negative for you, if this is the reason why you're not enjoying or like in this
conversation; the real problem is not budgeting. It's your mindset about it and
it's your spending habits. I'm going to tell you something right now that sucks
hardcore. But it's one of the most important things that I can possibly
tell you. Which is no matter how much money a month you're actually making,
what I want you to do is I want you to set a goal to save a certain percentage
of this. And when I say this number, you're not going to like me very much. But
I'm going to say it anyway because I think that it's good for you. So, here's the
number that I think that you've got to be playing with right now.
40%. You've got to find a way to save 40% of the money you
make. Now, I know some of you right now are like, "Agh! I'll never figure that out."
Like, "That's such a big crazy unrealistic number." But listen. We're having this
conversation about how to budget in your 20s. Here's the good news when you're
young: When you're young, you might not have bought the house and the car and
the boat and all the stupid stuff yet that you're going to have to service.
Hopefully you're still living maybe someone on the cheap. And if you're not,
I'm just going to tell you right now. If you try to spend all your money to have
as much as you can now, it'll severely limit what you can have in your future.
Here's why 40%. When it's 40%... At the end of this video, I'm going to recommend
another one which will actually diagram step by step how I became financially
free at the age of 26. I mean imagine graduating college and
same year literally saying goodbye to your boss and driving off in your BMW
convertible to your home parking right next to your black Cadillac Escalade in
your brand-new 10,000 square-foot house getting ready to take a trip to Mexico.
That was my very real life. And what was happening. And it's because I've got... I
fell in love. Not with budgeting. My wife demanded that I learned how to budget.
Because she was paranoid about us losing money. And so it became a game. To save as
much as we could. Because in the beginning we had no money.
Like I want you to like get this. Because I'm going to show you what I did. And then I
want you to watch this next video. So, my wife and I were so poor in the beginning.
We created this strategy. Her parents that were now financially well-to-do,
when they were in college, they always talked about how poor they were. And so,
we decided to create a strategy for budgeting called KPPPM. It stands for
Klenn's Parents Penny-Pinching Month. Which meant that we were leveraging
their strategy of just saying, "Hey, we got $20 a month for fun. And everything else
needs to be budgeted away." And that little strategy over 14 months allowed
me to put $5,000 in a bank account. And that $5,000 in a bank account which I've
documented in this book... Which is by the way for free. You can find it in the link
below. Anyone can have it. It'll show you how in 4 and a half years I became
financially free. The next video will walk you through it. And it's all because
of this magic number right here. We learned how to get to saving 40%.
And then from 40, it became 50. And then it became 60. And the numbers just kept
increasing. Here's why 40%. What's your biggest bill you're ever going to pay
if you're rich? You're going to pay the government. And you know how much the
governments get a lot based on today's day and age? The government is going to want
40% of your money. And if that's your largest bill out there, then don't
you think you should be paid more than your biggest bill? Don't you think you
should be paid more than what you're paying the goose that lays the golden
opportunity in this country? I do. Which means you should be paying yourself at
least 40%. Now, 40% is almost half of your income. And here's
what that means right here at the end of the day. It means that if I make $40,000
a year and if I'm actually saving 40%, that's
kind of... I'm going to be saving 15-18 thousand dollars a year. And what can you do with 15 -18 thousand dollars/
Well, hello. You can buy a house. And this is the thing that I want you to get
jacked about. You see when you buy this house right here, here's what you want
this house to do. You want this house to produce $300 a month. Now, I know you're
like, "Kris, $300 a month is not a lot of money." But if you're making 40 grand a
year. Guess what it is? This house is working hours for you and then it's
paying you. Right now, you're paid to work and give your time. This is the beginning
of an exciting journey. My wife and I, when we did our first house, we got our
first cash flow. My wife's like, "Kris, how many more of those do we need to do to
become financially free?" That's the right question. That's why we're budgeting.
That's why we're having this. It may not be sexy. You decide right now. I want you
to hear you say it through the camera I want you to say, "Budgeting is sexy.
Budgeting is fun. I love budgeting. I budget and I learn how to say 40% of my
money." And if you think I'm crazy, I know some of you're out there saving more
than 40% which is awesome. But when you're 20s ,life's never going to be cheaper
than it is right now. Save as much money as you possibly can. And now is the time
for you to take that money and invest it. That's what this next video is all about.
So, as we get to the in this video, what I want you to do is the video that's going to
pop over over here, I want you to click on it. I want you to watch it. It's had
millions of views teaching and showing people how the story of this book. And if
you're like, "Kris, I don't like reading or it'll take me hours to read that book."
Then watch this next short video. And it will show you exactly how I
actually created all of my wealth. And there's no reason why you can't do it.
I'm glad you started with this video because budgeting is the start of
getting where you want to go. Friends it's all in the link below.
It's all in the next video. See you there.
you