How Do I Make A Budget And Stick To It?

Sam starts off this hour in Indiana hi Sam how are you better than I deserve what's up so my wife and I we just had a baby here a few months ago our first one and after sitting down and looking at on moment and that those near so some I've gotten fairly nervous about you know where my financial standing is and I guess my question is how do I make a budget and then be able to make myself and my wife you know make ourself stick to it okay it's a good question the great news about having a baby in congratulations is it makes you get serious about stuff like that and starting to get you get your act together on some things that's very cool I'm glad I'm glad y'all are doing that okay so number one when you do a budget it is um it is not a straitjacket it is you telling you what to do okay okay so it's a guardrail it's don't run off the road and so you you the two of you sit down and say for groceries this month we want to spend X by the way as a side note whatever you think you're spending on groceries are spending more so the first month go ahead and beef that one up okay but okay we're gonna spend X on entertainment okay I'll just make up another 50 bucks okay we're just gonna put $50 in the entertainment category and then what you do you know the two of you are in agreement that the reason we're limiting our entertainment spending to $50 is so that and so that's a big deal we can get control of our money get out of debt create a great life for the new baby and so the great life for the new baby is and change your family tree is the goal not punishment for entertainment sure thing and so it makes it really easy it's like when you look at it and you know we're at $40 and to go this movie costs another the dollars and we don't have that we got $10 left in the budget we can't go the movie because we decided that it was more important to straighten our family out for the good of our child than it is for us to entertain our butts off mm-hmm and so you are limiting you and then so you and then of course you write it out and you keep up with it and you track it throughout the month and ever the every dollar budget will do that for you okay get to get that every dollar app it's free and you can build it in about 10 minutes it's all it takes okay and you'll be able to you know that both of you will have it on your phone and you can look at it and keep up with it and you know just go we don't have that so the answer is you know you have to everyone has a limit on everything a budget is just admitting it mmm because no one has infinite money right and so you know you just say okay at this point we're not gonna spend any more because we believe in a bigger goal a more noble goal than simply buying more crap at the grocery store all right or I need this shirt that's on sale or whatever it is right and so right but then the interesting thing is the things you do spend on you've given yourself permission to do that so you don't feel weird or guilty about it right so like my daughter Rachel Cruz who teaches Ramsey personality teaches on budgeting all the time says a budget is permission to spend okay because you said we're gonna spend this much on clothes and so as long as you don't go over that amount then you know you feel like you're a hero and you bought clothes instead of like okay what do you spend there to store men you know it's like ands but we're on the same page we're working together so you need a good why you got it good why it was born the other day you have a wonderful wife right and you need to be on the same page with your spouse and a game plan and then have your have your guard rails laid out and then stick to them so very good start very good start honor to have you in our audience

Channel: The Ramsey Show - Highlights

Views: 220,680

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, How Do I Make A Budget And Stick To It?, budget, how to budget, budgeting, how to make a budget, money, how to save money, how to budget your money, budgeting 101, budgeting for beginners, how to budget and save money, budget tips, budgeting tips, how to budget money, how to create a budget

Id: 4Eh8QLcB1UQ

Length: 4min 25sec (265 seconds)

Published: Fri Feb 14 2020