Budgeting Basics | BeatTheBush

The basics of budgeting is simple. Spend less than what you earn. Minimize expenses creatively. And buy things that saves you money in the long run.

How’s it going everybody does this beat the bush today let’s talk about budgeting basics now here’s a more conceptual way to think about budgeting it’s not really about me telling you how much you should spend on each thing because everyone has very different preferences everyone will have a certain amount of income and everyone will have a certain amount of expenses

Sometimes you would have the exact amount of expenses as your income sometimes you have more expenses than your income which is probably why you’re looking at this video because you are spending more than your income and racking up credit card bills what you want to do of course is just to get your expenses lower than your income my normal mode of operation is to

Reduce all expenses to a bare minimum now i can’t talk about every single expenses that you have but i have a peculiar list of four items here i’d like to talk about just to give you an example what do you think about when you look at your own personal expenses some things when you look at your budget you may think they are bare necessities however whenever you

Look at a bare necessity in your budget it may not actually be a bare necessity if you know how to work around it let me give you an example a cell phone plant is extremely expensive it runs most people somewhere between 50 to 90 dollars but you know what i spent i spent $0 on my phone personally it’s because i use it through freedompop and it works on the sprint

Lte network i get one free gigabyte of data every single month and i still get voice calls through their data network and yet i pay $0 on this phone plan this free phone plan however does have its drawbacks where the cell phone quality the voice quality is not so good but if you’re living paycheck-to-paycheck and you’re in need of budgeting that might be something

You should explore because that knocks off fifty to ninety dollars a month and that’s a large amount that you can put towards i don’t know food or whatever other things that are really really necessities cable bill is easy for me because i personally don’t have cable i don’t really watch that much tv myself but some people might go yeah you know they really really

Need to watch certain things all i can say is you don’t absolutely need it okay it might be something that you really really want you want to keep up with sports or like whatever shows that you but hey i don’t keep up with it and look i’m still standing here i’m just fine so it’s more of a perspective thing you really have to just step out and go hey what’s really

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Important to me can i cut off this cable bill or the tv bill or what not because those things are actually really really expensive and if you look at your budget it could account for a large percentage now the third thing is something that’s surprising to me and i like to talk about trash service during the longest time i thought my trash service was reduced to

The bare minimum however i talked to my friend who told me i can actually cancel my trash service before i cancelled my trash service i worked on converting all my compostable waste and put it in the green bin which is not the landfill bin the latter bit is the one that costs the most so i was able to reduce that trash service every three months was $90 all the

Way down to every three months is $40 so every single year i saved about $200 and this is something that i didn’t think i could actually do i looked at the service before i’m like hey this is the bare minimum i even called them and asked them hey is there something smaller that you can give me in terms of the landfill bin is that no there isn’t but a friend of mine

Actually told me about this and hey well when we hold i was able to reduce it further so my total automatic burn rate is really really low you can imagine their dollars on phone there are dollars on cable $90 on trash going down to $40 every three months on trash something else you might want to think about it’s also juice and soda this represents a very expensive

Part of your groceries bill which is basically all sugar if you eliminate this you’re not going to die okay if you don’t drink juice and soda you are not going to die you will actually be a lot healthier actually while you’re doing this don’t go buy the chips and all those junk food and maybe maybe just maybe you can eliminate the beer and stuff because those are

Actually very expensive and it’s also not good for your health either it’s a matter of perspective because a long time ago i absolutely require juice i’m like i don’t want to drink this i want something flavored i want something sweet however you can yourself off of having so much sugar and this directly impacts your budget and if you’re able to eliminate those

You can reduce your expenses so my whole point with this is maybe when you’re looking at your budget you minimize everything already but take a look again you could get creative and reduce things some more it’s a matter of perspective because at some point people would be adamantly saying they cannot live without certain things i know some people that cannot live

Without a cell phone plan i know some people that cannot live with a cable plan i know some people that is a willing to compost more trash and others that are absolutely dependent on drinking soda diet coke or whatever juice or grape juice white grape juice or whatnot so your budgeting is actually flexible and it’s not this hard thing where when you have minimize

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Your expenses it cannot move any lower oftentimes when you look at something it’s just a matter of understanding about that item if that was absolutely necessary the next important concept to graphs is that we should not always buy the cheapest of everything you should actually buy the most price efficient because normally if you are living to paycheck-to-paycheck

You might be shopping at a dollar store more and more often however considered is whenever you’re buying a cheap bottle of soap a lot of times i’ve noticed the dollar source stuff water things down you can buy a one dollar bottle so and maybe it will last you one week however if you buy the good stuff maybe it’s five dollars oh look five dollars more it’s five

Times more expensive however maybe it’s more concentrated it works better and it actually relaxed you ten weeks long so you see if you buy the more expensive stuff at the regular store it’s actually cheaper by 50% when you look at the long-term these kind of examples goes on and on for example is a dollar store you can look at a one dollar bottle of windex which is

Basically just blue water okay i looked at the ingredients in some of these things it’s just water and there’s not even ammonia in it and basically you can actually make this yourself and i have a video on my channel where i show you how to make your own windex so you don’t even have to go buy it finally after you minimize your spending to the fair minimum and you

Got really creative and and got everything down really really low you should not go bare minimum for too long at a time it is my belief that even if you earn a pretty low income most people can get away with spending less than what they earn if this whole circle is your income and you have a bare minimum spend already represented by this part over here you’re going

To have a certain amount that you can save now it’s important to not keep at this bare minimum all the time because you’re going to feel like you’re just you know whining away and not really living your life it’s important to take a portion of what you save okay one hundred two hundred three hundred dollars worth and take a look at that and say hey you can take

This and spend it on fun stuff for that month now this little bit is actually very important because it keeps you going and it makes you feel good and it kind of rewards yourself so you really need to portion a little bit of this for fun money when you have a dollar amount of fun money that you can use from what you’re going to save you’re actually going to think

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Really hard about it before you spend it on something that you actually like for example maybe you want to use this fun money to go to the movie but maybe it takes a pack of the fun money for of your budget for that month then you might kind of think about well you know maybe you don’t want to spend it on that because maybe there’s something that is more important

To you that would actually get you more happiness for that portion of amount that you spend it’s important to actually spend it rather than just be like a scrooge and save everything up because this amount is what keeps your morale up and keeps you wanting to keep at this bare minimum because if you just take everything away it’s going to feel like you’re living in

Prison right oh yeah you know you’re going to eat like the most basic meals everything is the most basic it’s going to feel pretty terrible if you stay at the bare minimum for too long so i know this is kind of broad but i think the mentality with budgeting is more important than the actual numbers itself the first thing you need to do is minimize spending finding

All the tips and tricks to minimize spending may take some time because every single thing that you reduce down when you take a week or two so you’ve got to build upon your minimize spending methods and then they would get lower and lower as you find out new ways to reduce your budget and thing is not to always buy the cheapest thing possible but to buy the most

Price efficient thing possible the third thing with budgeting is that when you save a certain amount you need to allocate a small portion of it for fun money so that you can feel good about saving so that’s all i have for you for today i hope these tips and tricks helps you reduce your spending and helps you budget a lot better don’t forget to give me a like on

This video comment down below share with me your budget and i’d be more than happy to comment on it and maybe make some suggestions if you’re interested in supporting this channel you can check out my gamefly link down in the video description below where you can get a 30 day free trial free gamefly i also have a patron over here and don’t forget to subscribe thanks for watching

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Budgeting Basics | BeatTheBush By BeatTheBush

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