016 - Budgeting Sucks, Do This Instead
Episode description
In this episode: Budgeting sucks …. Do this instead
Budgeting … It’s feels so negative
Instead think of align your cashflow with your life
Shout out to First Steps Cash Management - You can easily do this at home.
Instead of thinking about cash in one bucket, break it into three buckets.
Static - Past - Fixed expenses that don’t change
Control - Weekly expenses that vary
Dynamic - Planning for the expected and unexpected
For salaried people, use the net pay from your paycheck
For 1099 - Small business owners (lump in all costs of business and add a tax estimate for fed and state)
Once you make your first iteration, ask yourself … is this ideal? Is there anything I can change.
If you have bucket totals side by side … are you paying so much to past commitments that you cannot enjoy life while planning your future? How you can you change this? Can you reduce your static expenses?
Can you increase your income?
Once you know what you want, automate as much of it as you can.
LET'S CONNECT!
James
Scott
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