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Budgeting Like A Boss

money Mar 20, 2019

"You are either going to be controlled by money or control money"

If you are new to the weekly sauce, the mission of these short practical notes is to empower you to fire your boss and hire your passion.

The vast majority of people go through the motions, living an uninspiring life and a crap lifestyle because of one thing: MONEY.

So ask yourself: If money wasn't an issue, what would you be doing RIGHT NOW?

What kind of lifestyle do you want to live?

What needs to happen to make that lifestyle a reality?

The answer to that question, is the goal of the weekly sauce.

Each and every week, I strive to provide you practical advice in order to help get you on track to living an inspiring lifestyle.

With that being said, this weekly sauce is all about budgeting, but not your mothers method of budgeting.

Screw a budget.

The word budget is uninspiring. I never use the word unless I am trying to describe money management to someone.

When you say: "I can't buy that, it's not in the budget." you feel poor and disempowered. Instead, say: "my money could be allocated better somewhere else" or "I will buy that sometime soon"

It is very important to watch how you talk to yourself. If you keep telling yourself you can't afford anything, you will feel helpless and lose the drive to go out and increase your income.


The 4 Steps

1) Set your intentions

Don't set your intentions to simply get out of debt or pay off your loans. If you do this you may one day get out of debt, but that is about as far as you will go. If someone sets a goal to get out of debt, they are likely to celebrate reaching that goal, and ultimately fall right back in the slave we call debt.

Set your intentions to have financial abundance. To create an inspiring life. Don't put a cap on your intentions/goals with money.


2) Focus on Spending

Focus on what you can spend your money on, not what you can't spend your money on. It is just like a diet. If you focus on not eating the chocolate cake, you will eventually eat the chocolate cake.

Just saving to save, is uninspiring. When you are not inspired to do something, you will never stay consistent with it. It is incredibly important to stay consistent with allocating your money correctly, especially if you want to design an exceptional life.

Start thinking and planning how you will spend your money to create some motivation to stick with your "budget"

3) Hexa-ratio

If you don't know where your money is going, it won't go where it needs to be.

There are 6 different categories to a successful budget:

a) Necessities (50%)
-Everything you absolutely need.

b) Investments (15%)
-Vehicles that prepare you for the future.

c) Long-term Spending (10%)
-Things to look forward to; vacations, cars, relocating, ect.

d) Education (10%)
-Anything that develops and improves your knowledge, skills and abilities.

e) Play (10%)
-The money that you purposely blow to reward yourself with things you want.

f) Give (5%)
-Give back. This is the most rewarding of all. I just bought a Christmas present for a child with no parents and I can tell you it felt a lot better than going to Saks Fifth Avenue (fun account) last night.

"Budgeting" doesn't have to be boring and uninspiring. To stay on track with managing your money, you must reap rewards and have some fun with money. When you don't have anything to look forward to, you won't stay diligent.

4) Automate

Autonomy is the key to success in money management. When you automate things, you leave no room for human error often caused by emotions. I can't stress how important automation is in this process. If you don't automate, it will never get done.

Setup separate accounts for each of the 6 categories listed above. Once the accounts are setup, schedule automatic transfers to pull cash out of you income account and drop it in to these separate accounts. If you receive money biweekly, set up these transfers biweekly to disburse your income immediately.

When you know exactly how much you have in each account, you are much more likely to stay diligent with your money management.


If you want your life to change....

You have to change.

How does change occur?

With action.

Take action on this newsletter.

Take your money management seriously.

Setup those separate accounts.

Schedule the automatic transfers.

You will thank yourself later.
Remember....

You, and only you, influence, direct and control your future.

You are the master of your own destiny.

Start acting like it and take the first steps in managing your money to prepare you for a better, happier future.

See you next Friday!

 

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