It is soooo good to see y'all back!! And boy did I need this one!! I still have the hardest time asking myself, what I will do without if I make "this" purchase. I keep thinking I am following the budget as long as I can pull from another area to cover my impulse spending, never building up funds for an "emergency" fund (need a flat tire fixed, vet visit, etc)....It's still a cycle, pulling from one area to another, no discipline. Thank you!!
I'm only half through the video but I don't want to forget to comment on what I just heard. You spoke in terms of short-term, medium-term, long-term categories. Eating out=short-term; setting aside for Christmas=medium; retirement=long. Most of my categories already fit. I'm redesigning the rest in my head right now to set myself up for adopting what you addressed next. Next you said that when you make an adjustment to accommodate spending that wasn't previously budgeted for, you can't take funds from a longer-term category. Your example was deciding whether to spend more than budgeted on a camping trip that fell into the short-term category. To decide yes, you had to be able to fund it by borrowing from other short-term categories. I love this concept. Already I follow the "right" steps: I look at the budget category first (before I spend) to see it there is enough $ available; if not, I look for another category that's better funded to borrow from. But I still sometimes find myself in a pickle & I suspect it always happens when I borrow from a medium-term category to fund a short-term expense. I need the pain to happen in the same time frame or it isn't real enough to guide my decision. Thx thx thx. This is going to be an important tweak to my process.
THIS is a genius revelation. I agree -- the pain has to be in sync with the time frame of the budget category you're moving money from. Otherwise, you are just delaying the inevitable (coming up short when that category needs the money you had put there!). I need to remember this. I NEED TO REMEMBER THIS.
New sub here! Wow, such great points here. I feel all of this, especially the part about taking from short term goals and never catching up. This is where I am right now. Our salary took a dip this past year so our budget looks very different and it’s not easy playing the game of “this or that”. Greetings from NY!
Hey thanks! So glad you liked the video and found it helpful. And yes, when the salary drops, it definitely does get a lot harder to play the this or that game. But glad you're trying to do it all intentionally!
This is so good. We can’t seem to stay funded in all the things we need to (true and long term savings) and debt is killing us. But this really made sense in terms of the thought process and trade off/timing. Thank you!
Thank you so much for this video. It’s exactly what I needed. Never thought about the trade off like you mentioned. I am a single person and sometimes it’s very easy for me to justify extra spending when I have no one that holds me accountable. So thinking of the trades off’s like this will help me a lot. Thank you!
Totally get that Alison, I do appreciate you watching. It's never too late to make improvements for the future though, no matter how old you are. I've worked with a lot of folks 20 years older than you, and we still make progress. You can too :)
one of the best things i've done is to create a spreadsheet that maps what i need to save each year from the current year until i hit age 65 the spreadsheet takes my previous years "current value" calculates compound interest for the year with monthly contributions the contributions are used to calculate my tax refund which is added to the current value and passed to the next row down where the formula repeats i can add tax refund "spending" to each year and adjust my monthy contribution to see that cascading effects, it clearly shows how 500$ in year 1 is so much more than 500$ in year 20 whenever i decide i want to buy something that will eat into my retirements saving i go adjust the contributions in this spreadsheet for the current year it really puts into perspective, especially for large purchases, that putting them off for even just a couple years has massive benefits on my retirement value
This vid came right on time. We need to redo our budget and iur categories. We definitely dont have over 30-35. Let alone 60-80. And we do have lots of expenses as we are a big family.
Yeah, the category structure is really a matter of personal preference and asking the question "will I use this information to make decisions" We have a lot of categories because I like to get in the weeds. But you can have an amazing budget on 30 categories.
At 19 minutes in, you talk about planning backwards which we have done. But we are close to where we don’t want to have a W-2 and just depend on my LLC. But we struggle with giving up health insurance from an employer. As a business owner, I have no idea how to get coverage for my family if we give up the employer initiated insurance. Will you share in a podcast/video options for self employed professionals?
When you talked about Hannah wanting to eat out and Nick asking where the tradeoff would come from, I wondered, 'Is the tradeoff ever who makes dinner? '
Great question! We very rarely cook on a nightly basis. We tend to batch cook and meal prep on the weekends together and use it as a time to talk. So nightly it's normally a choice of eating a pre-prepped meal or going out. Perhaps that's the one of the downsides to meal prepping - we don't always want what we've already prepped :)
Thanks for the new video! You sound like you could learn something from retired people. Walk by an elderly home and chat. What do they regret? How do they think about their past saving-for-retirement decisions? On a side note, the world would be a better place with more Hannas and Nicks in it! And a longer appearance of the dog :)
I'm 64 years old and my mother always gave us very nice birthday parties because she was very creative and like to cook. However she may be spent $25 at the time and we had children over that were my friends in the neighborhood play little games. What is the nuttiness about spending $1,000 on a child's birthday party with Inflatables and ponies and all this ridiculous stuff! It's no wonder people are broke
It is soooo good to see y'all back!! And boy did I need this one!! I still have the hardest time asking myself, what I will do without if I make "this" purchase. I keep thinking I am following the budget as long as I can pull from another area to cover my impulse spending, never building up funds for an "emergency" fund (need a flat tire fixed, vet visit, etc)....It's still a cycle, pulling from one area to another, no discipline. Thank you!!
So glad this was helpful for you Debbie, thanks for watching!
I'm only half through the video but I don't want to forget to comment on what I just heard. You spoke in terms of short-term, medium-term, long-term categories. Eating out=short-term; setting aside for Christmas=medium; retirement=long. Most of my categories already fit. I'm redesigning the rest in my head right now to set myself up for adopting what you addressed next.
Next you said that when you make an adjustment to accommodate spending that wasn't previously budgeted for, you can't take funds from a longer-term category.
Your example was deciding whether to spend more than budgeted on a camping trip that fell into the short-term category. To decide yes, you had to be able to fund it by borrowing from other short-term categories. I love this concept. Already I follow the "right" steps: I look at the budget category first (before I spend) to see it there is enough $ available; if not, I look for another category that's better funded to borrow from. But I still sometimes find myself in a pickle & I suspect it always happens when I borrow from a medium-term category to fund a short-term expense. I need the pain to happen in the same time frame or it isn't real enough to guide my decision. Thx thx thx. This is going to be an important tweak to my process.
THIS is a genius revelation. I agree -- the pain has to be in sync with the time frame of the budget category you're moving money from. Otherwise, you are just delaying the inevitable (coming up short when that category needs the money you had put there!). I need to remember this. I NEED TO REMEMBER THIS.
New sub here! Wow, such great points here. I feel all of this, especially the part about taking from short term goals and never catching up. This is where I am right now. Our salary took a dip this past year so our budget looks very different and it’s not easy playing the game of “this or that”. Greetings from NY!
Hey thanks! So glad you liked the video and found it helpful.
And yes, when the salary drops, it definitely does get a lot harder to play the this or that game. But glad you're trying to do it all intentionally!
This is so good. We can’t seem to stay funded in all the things we need to (true and long term savings) and debt is killing us. But this really made sense in terms of the thought process and trade off/timing.
Thank you!
Hey thanks Amy! So glad this was helpful for you.
Thank you so much for this video. It’s exactly what I needed. Never thought about the trade off like you mentioned. I am a single person and sometimes it’s very easy for me to justify extra spending when I have no one that holds me accountable. So thinking of the trades off’s like this will help me a lot. Thank you!
I'm so glad to hear that this was a helpful conversation for you! Thanks so much for watching
This is so hard to hear when you are 57 and it’s already too late. But also …. Great work!
Totally get that Alison, I do appreciate you watching. It's never too late to make improvements for the future though, no matter how old you are. I've worked with a lot of folks 20 years older than you, and we still make progress. You can too :)
@@mappedoutmoneythis is encouraging!
@@mappedoutmoney thank you! I know you are right
Great video, and this is speaking volumes to me😅😅. Never thought about the trade-off like that… and the limit point of view
Hey thanks! So glad to hear this was helpful for you. We appreciate you taking the time to watch
Love this format. Keep the content coming man! Hope you and the fam are doing well boss
Thanks for watching, we so appreciate it. Glad you enjoyed the show!
The mean girls banter had me laughing out loud🤣 love the idea of making short, medium, long term views!
Thanks Amber! Glad you enjoyed it
one of the best things i've done is to create a spreadsheet that maps what i need to save each year from the current year until i hit age 65
the spreadsheet takes my previous years "current value" calculates compound interest for the year with monthly contributions
the contributions are used to calculate my tax refund which is added to the current value and passed to the next row down where the formula repeats
i can add tax refund "spending" to each year and adjust my monthy contribution to see that cascading effects, it clearly shows how 500$ in year 1 is so much more than 500$ in year 20
whenever i decide i want to buy something that will eat into my retirements saving i go adjust the contributions in this spreadsheet for the current year
it really puts into perspective, especially for large purchases, that putting them off for even just a couple years has massive benefits on my retirement value
This vid came right on time. We need to redo our budget and iur categories. We definitely dont have over 30-35. Let alone 60-80. And we do have lots of expenses as we are a big family.
Yeah, the category structure is really a matter of personal preference and asking the question "will I use this information to make decisions"
We have a lot of categories because I like to get in the weeds. But you can have an amazing budget on 30 categories.
Always love your content!
Thanks Deanna! So glad you enjoyed it!
At 19 minutes in, you talk about planning backwards which we have done. But we are close to where we don’t want to have a W-2 and just depend on my LLC. But we struggle with giving up health insurance from an employer. As a business owner, I have no idea how to get coverage for my family if we give up the employer initiated insurance. Will you share in a podcast/video options for self employed professionals?
When you talked about Hannah wanting to eat out and Nick asking where the tradeoff would come from, I wondered, 'Is the tradeoff ever who makes dinner? '
Great question! We very rarely cook on a nightly basis. We tend to batch cook and meal prep on the weekends together and use it as a time to talk. So nightly it's normally a choice of eating a pre-prepped meal or going out.
Perhaps that's the one of the downsides to meal prepping - we don't always want what we've already prepped :)
Thanks for the new video! You sound like you could learn something from retired people. Walk by an elderly home and chat. What do they regret? How do they think about their past saving-for-retirement decisions?
On a side note, the world would be a better place with more Hannas and Nicks in it! And a longer appearance of the dog :)
haha, thanks so much for watching! We appreciate it
I'm 64 years old and my mother always gave us very nice birthday parties because she was very creative and like to cook. However she may be spent $25 at the time and we had children over that were my friends in the neighborhood play little games. What is the nuttiness about spending $1,000 on a child's birthday party with Inflatables and ponies and all this ridiculous stuff! It's no wonder people are broke
First
Appreciate you watching!