How I Would Budget $7,000 a Month

foreign hey guys and welcome to this episode of the Rachel Cruz show so today I'm going to take a look at one of your budgets and show you step by step what I would do with the amount of money in a month so I'm leading a class called Financial Peace University and I asked if anyone in the class was willing to share their monthly budget with me so that I can kind of review and give some feedback and well we had a lot of volunteers which was so great so I actually just chose one of them for this episode but if you guys are interested in me looking at your budget make sure to DM me on social they could be on Instagram or Facebook because this may be something we do every month because again looking at a budget is so helpful and it's helpful because a lot of people are creating a budget for the first time and they feel like it can be really daunting or maybe you've budgeted before but your spouse isn't fully on board or maybe your income isn't where you think it should be in order to have a successful budget because listen there's always going to be obstacles in the way and you're looking at them and saying well I can't do it because of this but the truth is anyone with any income and any amount of debt can win with money if they have a plan and that's the key is we want to have a plan to get out of debt and to take the most of our income and be intentional with it so today we're going to kind of do this together so for this example I'm going to use every dollar because it's the app that I personally use for budgeting and I think it's so easy to use and really helps you understand your numbers but before we get started I want to talk to you about one of our sponsors Christian Healthcare Ministries so being free to make your own medical decisions is a really big deal in Christian Healthcare Ministries that lets its members choose the providers they want without worrying about networks so to find out more check out chministries.org budget that's chministries.org budget all right so let's take a look at this budget so for this person specifically they have three main money goals number one is the pay down credit card debts number two is to save up for a holy land trip for her and her husband and third is to save three to six months of expenses so they actually paid off their mortgage in March of 2023 which is amazing and they saved and helped both of their kids through college including a master's program which is phenomenal her husband is self-employed and has been for 26 years and she's planning an early retirement in 2026 at 59 years old with a pension but she may look at another career until she's 65 for health benefits okay so what we're looking at again in this situation everyone's going to be different but for this one specifically they have a total of 69 000 of debt that includes a car lease and their baby steps they've kind of done them out of order okay so if you think about it baby step one a thousand dollar emergency fund check they have that baby step two is paying off all of their debts uh not including the mortgage but they've done that so they've not done this step yet they still have debt all right maybe step three is a fully funded emergency fund which they're going to be saving for and maybe step four is to contribute 15 of your income into retirement so they say that they're going to be contributing 50 a month until baby step three is complete but I would Nix that because if you're each contributing even then that's a hundred dollars that could be going towards paying off debt so I would pause that and so that money could be going in your budget to help pay off debts and then for them baby steps five and six which is pay for kids college and pay off the house early are done which is awesome so the baby steps are a little out of order so let's kind of start from the beginning baby step one they have now we're gonna be starting on baby step two okay so they're gonna be paying off their debt so here is the budget right now so if you look at their paychecks uh they make about thirty six hundred dollars per paycheck period period so they have seventy two hundred dollars to work with so they're going to be giving and right now it's at about 140 dollars they're saving for that Holy Land trip uh which is seventy six dollars and then a b c d is 41 sorry that's another giving obviously that they're doing uh their emergency fund is 25 and then here's everything else from electrician electricity water house cleaning pool cleaning lawn maintenance air conditioning property taxes uh okay so there's some gas I'm curious what that would be for them unless they have Teslas and they're not looking for gas uh groceries yep that's about right personal grooming 240 five dollars Insurance Life Insurance homeowners insurance and then all their debts so if I'm looking at this budget and again they're on baby steps they're on baby step two is really where it's at um which is amazing they don't have a mortgage or rent that they're having to do so if I were them in this situation honestly and I hate to do it but I'm going to I'm going to take house cleaning out so for a period of time just a period of time we're gonna find money where we can because remember you guys baby step two you are squeezing out every dollar that is possible so for me I'm I'm taking out I'm taking out home cleaning okay I don't have a pool my parents had to pull my in-laws have a pool and I know that the pool cleaning is important but what I'm going to say is I would I would do as much as I can on my own and then I have the company because I know you want to take care of it and not ruin your pool but I would do it more instead of every month I would go every other month so for this month just for the fun of it let's just say that we we are intentional about it ourselves again come June you can put it back in for a month let's just take it out for the fun of it okay lawn maintenance y'all I mean I'm not kidding this is where I would go zero and I even know when Winston I were saving up for a house like we cut everything and he mowed our yard did it all so even if there's like Hey we're gonna find a lawnmower we're gonna do something and do the lawn ourselves I'm gonna go to zero here just for the fun of it let's just don't don't yell at me y'all okay okay I we gotta put some money in gas I feel like that's I'm gonna put a hundred dollars I mean and I'm gonna put 200 in for gas I feel like that's a very realistic if you have two cars and you're filling up at least twice a month I feel like we're gonna just do that your car at least you gotta pay groceries uh so it's for two people I mean that feels about right I'm gonna for the fun of the game let's see if we can do this let's see if we can 450 again rice and beans beans and rice people if we are cutting stuff that's our that's our goal here restaurants I'm gonna give you like a Chick-fil-A run fifty dollars we say you shouldn't see it you shouldn't see the inside of a restaurant unless you're working there on baby step two but I'm gonna give you a little Grace on that and just give you a little bit close but okay personal grooming I don't know what that is I understand we need haircuts they need to do the hair which can get expensive don't kill me you're gonna find somebody I'm thinking of color and cut and finding someone that's just starting out or I know that I mean some people's hair again it ranges on what people pay but I'm gonna do this just for the fun of here okay we got homeowners got that okay so here's the deal you guys you got 700 they have 760 dollars sixty eight dollars left to budgets okay so then on here guys when you look at you can look at the minimum payment foreign okay so with babies up to you guys we're going to do minimum payments on everything so Bank of America card let's see what this is minimum payment okay so they're they're adding they do have some extra payments going they're not quite at the minimum payment on those first two let's keep going and see 80 that's a minimum payment car is the lease okay we're gonna leave that one alone let's see okay so she's done good on these These are minimum payments and minimum payment here okay okay this one I wonder what the why the minimum payment is so high here so I'm gonna I'm gonna lower this one you guys if this is true in the middle of him is thirty one dollars all right so I'm gonna do 31 because again minimum payments on everything but the smallest whoa okay here we go y'all here's what's fun okay look at what we have right here sixteen hundred dollars it's freed up so what I would do is I would plan on paying this one off here let's do one thousand sixty three dollars plan to pay that so that is completely paid off we have fifteen hundred dollars left over here almost fifteen hundred um and I'm making sure this is the smallest debt so she has them listed which is awesome Okay so we're gonna do 14. 9 43. it's okay it's an every dollar budget okay so y'all so One credit card just this month by cutting expenses is knocked out so boom this one is going to be paid off again of how much love is left over uh this one's gonna be paid off next month and then even this one's gonna be knocked out and do you see y'all that's four that's three debts that are going to be significantly gone in two months already and then you keep adding to this and then all this is going to be knocked out y'all which is so that's so exciting there's so much room here to be able and what's fun too is again it's an every dollar budget now I will say I may go backwards here because I see no buffer so actually I'm gonna do this y'all we need a little buffer because we're a hundred dollars over let's go back here let's change this to a three okay that feels better um yeah y'all I mean how incredible that this you know yeah you got twenty three hundred dollars freed up You're Gonna Knock that dead out Knock a good chunk of that and then you go down to the Home Depot paying off car I mean everything you go down this list and this is what you do and then I would even say I mean what would happen let's just have fun here what would happen if we had a side hustle okay y'all and then let's just go crazy and say they each went and did a side hustle and brought in 500 each so together in the month they had an extra thousand dollars let's just pretend this is what's fun about the budgets you can kind of just sit here and like makeup scenarios so look at that so what if this was changed to 2000 so that means for sure the like these can be knocked out so much faster I mean you you sit there and watch and see how powerful cutting things are and then adding income and how quickly you just go down this list and this is not going to take them depending on how crazy they get here especially with bringing in more income I'm like I March or hopefully even by January I mean they could really major uh progress here especially if they get up their income I mean in six to nine months they could be completely debt free saving up this emergency fund in a couple other months and then they're they're on baby step seven I mean like oh what I love about this is again it makes it so tangible you're able to look and see and say okay what can I do what can I move around and again nine months out of your life out of their life is saying we're gonna be changing some stuff up for nine months and and we can all do that like you can do that it's a short term sacrifice for complete long-term care of not having all these credit cards I mean look at all these credit cards and all these payments going out and if all that was just theirs there's so much they could be doing right now with it which is so exciting that that will be freed up so I'm so excited for them I see that it's possible and again living it out you can do this for a short period of time knock out this debts and then it frees up so much of your income so fun you guys okay I love looking at your budgets and I know it's easier to see numbers on a computer screen than living it out so the sacrifice is real okay I'm not negating that the sacrifice is very real but Comfort is not what we're looking for here when you're comfortable you're gonna keep doing what you've been doing so get out of your comfort zone do something different for a while and then you're able to come back and say yeah girl I'm gonna get my hair done by the best person in the city or whatever you spend all your money what you want to do get the house cleaner back get the lawn service back get it all back it's great for a period of time that sacrifice is so huge and you can see it right there on the budget all right you guys well thank you to the person that offered up their numbers it was so helpful because again seeing other people's picture and what they're doing is so helpful because there should never be shame around money okay it takes a lot of Courage especially to let other people see your progress and where you're at so I hope that walking through a real life every dollar budget step-by-step is helpful and if you're interested in knowing more about budgeting or even giving it a try for the first time the every dollar app is a hundred percent free to download and it's so easy to use so I'll leave a link in the description for you to check it out and I also mentioned that I met this person in Financial Peace University in the class that I'm leading so if you're curious about FPU and might be interested in signing up for the class I would love for you to do that so you can go to ramseysolutions.com to sign up for a class today and I'll also leave a link in the description all right you guys uh if you are doing amazing things with your money goals so keep up the great work make sure to send this video to a friend who might be feeling a little reluctant to start budgeting to tell them that they can do this there's such power in it and remember to take control of your money and create a life you love

Channel: Rachel Cruze

Views: 140,584

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 $7000 a Month

Id: IukAcwKq3zQ

Length: 14min 22sec (862 seconds)

Published: Mon Jun 19 2023