How I Would Budget $3,600 a Month

foreign hey you guys welcome to this episode of the Rachel Cruise show and today I'll be looking at one of your budgets so so far I've done this with two other budgets where I explained step by step what I would do and these real life situations with these real life incomes and so I'll put a link to those two other budgets that I've done links to the videos down below so make sure to check those out but today I'm going to be going over one of your monthly budgets that's around thirty six hundred dollars a month and you guys on YouTube specifically we're asking for this so I thought yeah let's do it but before we get into the budget I wanted to tell you really quickly about a game that I have been loving to illustrations okay you guys it is so easy to learn it is so much fun if you've never heard of it before it's basically like the game of telephone but instead of using just words you use words and sketches and if you're not a great artist like me honestly it makes it more fun you should see some of my drawings they were terrible but that makes it fantastic so if you're interested in making lasting memories for less than twenty dollars go buy telestrations at Walmart or wherever you buy gifts you will not regret it all right so let's take a look at this 3 500 monthly budget so again in real time this person is sending their numbers and just looking overall so they have their main income which is about 3 100 a month they have three different side hustles which is very impressive two hundred dollars a hundred dollars and a hundred dollars coming in with a total of 3 570 dollars so going down there giving 10 of their money which I always recommend people doing which is just fantastic they don't have any money plans for their emergency fund savings so I'm going to assume that their emergency fund of a thousand dollars is completed and anything else they have coming out is going towards their debts that's what I'm gonna assume uh they have a sinking fund to replace their car they have a dental surgery that has 800 in it coming up rents for eight hundred and twenty dollars uh the convenience fee of thirty five dollars electric gas car repair buffer groceries restaurants Health Care clothing rental spending money miscellaneous and then here are their student loans they have four different student loans it looks like so a three thousand a ten thousand a ten thousand fifteen thousand they have plans to I guess pay this amount for this month which is probably their minimum payment which is great and so so far yeah their budget technically isn't every dollar budget right now okay so always the goal when you are on maybe step two is you're going to put as much money as possible towards paying off debt and we talk about you guys scorched earth like you're doing nothing but putting money towards this so what I would do and the situation is again I would go back through and say okay where can I up my income and where can I decrease some expenses so again this isn't going to be forever but for this one the clothing rental I'm going to assume that's just like a luxury so I would say yeah you're not gonna be spending any money on clothes so let's just pretend that you don't buy anything new clothing wise for four months okay that's 400 extra going towards debt so for this I'm gonna go ahead and just put zero which gives us a hundred dollars left and then I I mean restaurants you guys I understand that we talk about this a lot but it's so easy to to say well I need to have you know some breathing room here and there but when you have an income like this with that same amount of debt is basically the same amount of income to debt there has to be major sacrifice at some place so I personally would say no I'm going to be eating at home four months at a time it's not going to be forever but for this that's what I'm going to choose to do so I would lower that which means in that case I would probably bump this up to 300 um for groceries because if you're not gonna be eating out some of those meals it's going to be going to groceries but there's ways to eat really inexpensively and if this is for one person which I'm assuming it is um we're gonna just say that yeah for this situation that that's what they're going to spend the only question I would have is for the dental surgery eventually that's going to be paid and if they have dental insurance obviously that's going to help but the dental surgery will not be there forever so they're saving up for it but maybe in the next like three months this line item will go to zero which is going to be very helpful because they would have had the surgery and they would be done so again we're gonna pretend we can do a budget we'll do a mock budget for this month specifically and then I think we do one you guys again for in three months and let's just pretend that the surgery is done because that's going to show a lot of traction so for July this is what I would do and then again because because of the income I would I would find a way to pick one of these side hustles where I could work more because even if you're working you know a full day on Saturday and then even going and working a full day on Sunday even or for five hours on Sunday it's like every moment that you have to go into work and to make this income for this season of Life the more traction you're gonna see so again this is a lot of sacrifice for this specific budget but because of the numbers that's that's the reality of to see any kind of movement there has to be that sacrifice so unless their main income their main job their main salary unless that's going to be increased at some point where they're taking a different job or getting a raise these side hustles is the best bet so just for the fun of it I'm like yeah let's just say you know you add some more hours either at evenings or on the weekends and I'm gonna just play around with the numbers but let's just say you can bump it up like another 150 bucks in that so that would be 250 there so that's 300 that we have left which this feels like that's what that feels like a lot which is great it's a really tight month and I understand it but we want to get these student loans knocked out as soon as possible especially this three thousand dollar one because that's going to free up an extra fifty dollars a month once it's paid off so so in this case they'll have 350 to go towards their student loan but at that rate it's going to take them again close to 10 months uh nine months to pay that off where I want I want it even faster so that's why for the fun of it if you go up and look at the dental and that's at zero then that's an additional 800 you guys which is just phenomenal to add so again if we say yeah we're gonna add it there and that's going to be that much which means you can get that paid off in three months versus nine months so it's amazing how a few hundred extra dollars moves the needle a lot with paying off the set and then the exciting thing is too let's just say that this is paid off so let's just trash this for the fun of it and say Yeah in three months once that's completely paid off then you're gonna look to see okay you have all of that left to budget so you have that again all of that money is going to be pushed towards that ten thousand and then again hopefully wherever it's picking up extra is going to be put towards it at snowball so with it with an income like this with the debt amount you guys again the shovel we always say versus the whole it makes a difference and so how much income you have coming in is really important and where you can cut but I give kudos to whoever submitted this because they really have cut back a lot I would even just come back a little bit more because it's every dollar matters Jade warshaw one of our Rams personalities her and I were talking about this on air on the Ramsay show her and her husband Sam were paying off over six figures of debt like 600 000 over a half a million dollars you guys in debt and they were at the grocery store and he added something in the cart and it was just like six bucks and she was like that's not on the list that's not on the list and he's like Jade it's not a big deal and she's like no but it is like that six dollars it's everything we're so close because any dollar going towards this gets us that step closer which again for some people I know that sounds so extreme and so crazy but there's a level of that kind of sacrifice that you're like hey if I do this for a short amount of time that means after all this is gone all this debt and for this person let's just have fun and say okay let's pretend they paid off all their debt which will take them a few years but once it's done and then in a few years hopefully they've gotten a raise on at their job like their income will continue to grow that means they have close to fifteen hundred dollars right now left over and again with some raises and other things it could be more than that per month to do stuff with so it just shows the power of when you free up your income from debt payments how much more you have to use for your life so again I really applaud this person's budget because they've really done the work they have a lot of side hustles they're working hard and uh they've made a lot of sacrifices on their expense side so again sometimes that this is the situation and it's a longer Road for others but if I were this person this is what I would do with my budget again it's short-term sacrifice for long-term gain all right thank you guys so much for offering up your monthly budgets for me to work on and if you guys have a budget that you want me to look at make sure to DM me on Instagram and my team and I can reach out to you for more information about future episodes and remember there's never any shame around money so it takes a lot of Courage for someone to peek inside your budget so again thank you to the person who submitted this and if you're interested about budgeting make sure to check out every dollar this is our budgeting app it is 100 free to download so I will put a link in the description so that you can check it out and also if you're curious about the course that I mentioned Financial Peace University you can go to ramseysolutions.com to learn more and I will put a link in the description as well fbu yeah I just helped tens of thousands of people change their financial Futures so I promise you will not regret it make sure to send this video to a friend who might feel reluctant when it comes to budgeting and for you guys remember to take control of your money and create a life you love [Music]

Channel: Rachel Cruze

Views: 171,037

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, How I Would Budget $3600 a Month

Id: Ido7pst_Iw4

Length: 10min 24sec (624 seconds)

Published: Wed Aug 02 2023