How To BUDGET AND SAVE MONEY | Take CONTROL of Your Personal Finances

hey friends welcome back to our channel I'm Lyn Allure and if you're new here hello hello welcome to another episode of good girls gone boss on this channel we talk a lot about personal development personal finances everything from making money saving money investing money making smart financial decisions and overall just being a better you so if you like conversations like that definitely subscribe and join the party and also don't forget to hit that like button cuz it really really really really really really helps me out it really helps this video out with this whole YouTube algorithm so definitely hit that like button and help a girl out okay so if you click on this video then you read we are talking about my favorite topic ever and that is personal finances I've said it before I'll say it again I think that my relationship with money is very healthy if there's one thing I'm confident in it is my relationship with my personal finances okay and if I can be assistance to this world and help just one person with this video I will gladly take on that responsibility I'm just really passionate about personal finances guys it makes me so exciting and with my educational background and my 9-5 career being in accounting and finance it just it all just makes sense so you know I I love finances I love helping people you put it together boom we have a video on how to budget and save money I just really wish they would teach this stuff in like high school but no they want to teach us that pi is 3.14159 and i have never used that in my adult life until right now but you know what i did need to use in my adult life and what i had to figure out on my own how to budget and save money how to invest money how to file my own personal taxes all of these things but you know what let me stop this is not a rant about the public school system I'm just gonna get right into these tips on how to budget and save your money so tip number one is to create an actual budget of your money something visual that you can see creating a budget gives you a visible well-thought-out plan on how you're going to allocate any money that's coming in to see how much money you're projecting is coming in and also how much money is actually coming in it allows you to see how much money you're projecting to spend and how much money you actually do spend so that financial plan of how you're gonna spend any money that comes in is vital because you know what they say if you fail to plan you're planning to fail and we're not failing with our money this year honey no no we're not my love we're succeeding with our money we're exceeding all expectations with our money our bank accounts are going into overflow so yes it's just really important to have an idea of what you're gonna spend your money on when it comes in because if you don't know what your limits are and how it impacts the rest of your finances you're just gonna continue to make the same mistakes over and over month to month and wonder why there's no money coming in a budget allows you to see hmm I spend like 50 percent of my money on food and entertainment but I'm not eating anything so divine that's when you're able to analyze and just be a little bit smarter with your money I'll give you an example if I give you $100 right now you're probably gonna spend it on the first two things that come to mind first three things and it might not be the best logical analytical way to spend your money you might spend it on something that you want but it might not be the smartest and most thought-out allocation of your funds an extreme case of this is people who win the lottery and then go broke or file for bankruptcy just a few years later and this is not uncommon CNBC actually reported that lottery winners are more likely to file for bankruptcy within 3 to 5 years than the average American why is this because they didn't plan for those funds it came in and they just spent it however they deemed fit they didn't really think it out long term or even short term so I say all this to say that you need a physical budget I actually have one available on the good girls gone boss website although it'd make me so happy and it'd mean the world to me if you purchased mine you really don't have to purchase mine you just have to have one you can create one on your own the one I have is an Excel spreadsheet and I'll walk you through how I use my own spreadsheet that is very similar to the one on the website at the end of the video but if you don't have that one you can create one for yourself if you're really good with Excel you can create one on Excel when I was in high school I created one with pen and paper the only difference now is that as an adult I have way more expenses than I did in high school there wasn't really much to write out but now when I have expenses coming in from left right and center insurance different streams of revenue subscriptions it just all becomes a lot so having an Excel spreadsheet that I can copy and paste and I can use multiple times over and over and over again it just saves me so much time it's so convenient so I like to use my Excel budget spreadsheet it doesn't need to be anything too intimidating I totally understand if dealing with your finances makes you a little bit apprehensive or a little bit agitated or a little anxious but the key factor to dealing with your finances and dealing with those negative feelings towards your finances it's just to tackle it because whether you tackle it or not whatever issues you're facing from last month are only gonna repeat themselves now and it's only gonna create a snowball effect because you're gonna have the same problems from last month this months gonna create more problems for next month and it's an ongoing cycle so just tackle it hands-on you can use a spreadsheet that I have on good girls gone boss because it's very user friendly or you can create your own but I just encourage you to just tackle it just tackle it it's okay it's okay definitely create a visible budget for yourself now tip number two someone might say oh this is pretty self-explanatory but not actually not all the time and tip number two is to determine your income now I know it might sound crazy like how do you not know your income but a lot of people don't especially if you work in an industry that sales Commission's based tip base even hourly if you work on a salary that is like a base plus a variable it's hard to determine what your actual income is also if you have multiple streams of revenue it's easy for people to think that they're making more money than they are because they don't factor in like the expenses for example you might have a side business where you're making $100 per client but in order to service that client it costs you about thirty five dollars and you're not factoring that in your thinking that you're making $100 when in actuality you're making about 65 so determining what your actual income is it's very important and one thing I would recommend if you do have an income that is based on a variable for example waitressing where you rely heavily on tips or maybe a car salesman where you rely a lot on commissions one thing I would recommend is that you add up your earnings for the last three months and divide by three in order for you to get an average amount per month that you're making and then once you have that amount subtract ten percent of that just to be on the safe side so you have a pretty safe income figure to base your budget off of tip number three is to track your expenses now this is the one I think a lot of us we avoid because we just don't want to face the fact that my love's you've been spending about $800 a month on food and why and why what have you been eating where is it from uber eat that Uber Eats is a devil oh you'll be spending $30 on $12 meals on uber eats okay doordash foodora skip the dishes they are all dangerous okay but we often avoid just facing the fact it's hard for you to budget if you're not being realistic or being honest to yourself about how much you're actually spending and on what so this doesn't only include the big purchases it literally includes everything from $2 coffees all the way up to $1500 vacations you need to track everything every single dollar that you're spending and put it into your spreadsheet from then you'll be able to assess and analyze and see hmm it's a necessary that I'm spending this much money on these things maybe instead of going in the movies every single week maybe I can't stay home watch a Netflix series or something maybe I don't need to spend $30 on a $12 meal on ubereats maybe sometimes we cooking at home maybe sometimes do I need this gym membership I mean I've only been once maybe I should start working out at home tip number four for budgeting and saving your money is to use the 70/30 rule it's basically the principle that you spend 70% of your income on wants and needs and then the other 30% you're putting towards savings and investments if the 70/30 rule doesn't work for you your expenses are way too close to how much you make then try to use the 90/10 rule where 90% of your income is going towards needs and wants and 10% of your income is going towards savings and investments and if the 90/10 rule is still too tight for you you definitely need to make more money or spend less it's just the equation you know how much you make and how much you spend there should be a gap and if the gap is too close that means either you're not making enough or you're spending too much so you've got to either make more or spend less or both it's just the basic equation you have to figure out do you want to make more money or spend less or both if you need some examples on side hustles a shameless plug I have two videos up on some side hustle ideas you should definitely check it out check it out to find some ideas or whatever you might find something that you want to do it might spark an idea of your own for you to make some extra money on the side okay so tip number five is to save your coins literally so there's this principle that how you do the small things is how you do the big things if you see a quarter lying on the floor somewhere in your house and you just don't even mind it because you don't even care about it you're kind of subconsciously developing a mentality that not all money is important when in actuality it is important and it does add up so if you program yourself to value a dime value twenty five cents then you are conditioning yourself to care about and be responsible for larger sums of money as well if you see 25 cents on the floor and you don't care about saving it then what would stop you from caring about twenty five dollars twenty five hundred dollars and when you come to a place where you have two hundred and fifty thousand dollars what's to say you will be responsible for that so save your coins wherever you can literally even in the grocery store okay sometimes you're gonna pick up the Honey O's instead of the Honey Nut Cheerios okay and if you just aesthetically don't want to see that great value cereal box in your home it's okay it's okay it's okay you could just you know put it in a cute glass jar or whatever if your friend comes over and is like oh girl why do you have a great value jam in your fridge you could tell your friend you know what you can close my fridge door and you can also close my front door on your way out because you and I we not here we're not here no but on a serious note if we're being honest like who cares who cares about other people's opinion don't go broke trying to act rich because anyone who wants to critique you and how you spend your money you have the question like are you even financing me who are you to even have an opinion on how I spend my money if you're not financing me your opinion holds no weight here don't focus on other people don't focus on what other people are trying to do stop trying to keep up with the Joneses or the Williams or the Browns or the instagrams okay don't focus on anyone else when it comes to your own personal finances because that relationship with your money is very personal it's a one-to-one it doesn't involve everybody else it's not you and Joe Schmoel and your neighbor and your ex-boyfriend and your sister your relationship with your money needs to be very personal and in order to get into that place where it can be very personal it needs to be very strong otherwise you're gonna have people around you constantly making commentary on how you're spending your money why are you doing that why are you buying this and you're always broke why are you doing that and you haven't invested this in a job but when you're good with your money you are on a one-to-one basis with your money doesn't matter what anybody tells you you're like okay I know what I'm doing trust me don't worry about it sweetheart don't worry about it I got it me and my finances were good it's kind of like a relationship with a significant other you know when you guys are strong it doesn't matter what anybody else says from the outside because you're like don't worry about it sweetheart we're good all right so tip number six is to save automatically now what I do with my bank I have a certain amount that comes out of my checking account into my savings every single month and then ever so often when it reaches a certain threshold I'll take that money out of my savings and I'll put it into at TFSA which is a tax-free savings account one of the most common features of a TFSA is that any interest earned on the money in your TFSA is tax-free and also any money that you withdraw is tax-free however I personally love to use it because I can't access it in my app so when I go into my app to just you know monitor how much money I have at the moment that money is out of sight out of mind I don't even have it to consider so it's kind of like bonus money for me so I have my checking accounts I have my savings and then I also have the TFSA but it doesn't even show up in my app altogether so it isn't even a factor when I'm looking at my financial summary so that's an option you can definitely check in with your bank it typically is a free service that they will just automatically take the money out of your checking for you and put it into your savings banks love when you use their savings account with your money being in their savings account they basically get to do what they want with it another common principle in finance is a dollar today is worth a dollar tomorrow sorry guys I meant to say a dollar today is worth more than a dollar tomorrow so if they have your dollar in their bank then they're able to invest it and use it for their own purposes their own gain because typically the interest rate on savings account in your bank is lower than the rate of inflation so I'm just pulling these numbers out of nowhere but just so you guys get the concept like if you have $100 in the savings account years from now that $100 might only be worth ninety-five dollars but the interest that you made on it is only about two dollars if they had your $100 back then they were able to invest it and probably made more than the 0.05 percent interest rate that you have or whatever it is that's why if you have a large sum in your savings account you might want to look into investing a portion of that depending on who you ask the hole like investing thing can sound very confusing and intimidating I promise you it's not that complicated as some people might make it seem if you guys want to see a video on investing definitely let me know because I think that would be a really cool video to do I would love to do a video on that if you guys are interested since we're on the topic of automatically savings another option is that you can use those apps that roundup savings I know a lot of people use this and it's actually a great way to save without even realizing that you're saving one app for Canada is Mylo and for the US is Acorns so basically what they do is let's say you use your card to buy Starbucks it was eight dollars and thirty cents so it will round up to nine dollars I've put 70 cents into your savings account for you you can set it up so that they're putting in a certain amount for you so for every transaction they might round up to the nearest $10 or they might put $5 in for every transaction it really depends on you you can determine how much you want to get sent into your savings account automatically and it's just a great way for you to save money without even really noticing that you're saving money so that's always good tip number seven for saving money is to use the half your bank account rule I believe it was Jay-Z who said it if you can't buy it twice you can't afford it now this isn't for major purchases like housing or transportation maybe buying a new car or whatnot but it's just a rule of thumb to use when you're considering whether or not you should buy luxury leisure items for example if you wanted to buy a purse that cost $3,000 but you only have $5,000 in your bank account you probably should not be buying the purse now if you wanted to buy a purse from Aldo and it's $60 but you have $5,000 in your bank account it's a little bit more room in there you know so it makes a little bit more sense I personally think that's a really good rule of thumb for considering if something too expensive and can you afford it I mean we all want nice things that we all love nice things but does it financially make any sense at the end of the day does it financially make any sense for me to buy a purse or buy shoes or go on a vacation that costs more than what would be left over in my bank account and typically that doesn't make much sense at all that's just a little rule of thumb to use if you're considering on whether or not you should buy a leisure luxury item okay so tip number eight is to use the 24-hour rule so sometimes we do have these impulses where yeah maybe you want to buy the purse okay it's $2,500 and you have more than $5,000 in your bank account okay you have more than enough money but you're wondering should I buy it should I not it might be something that you weren't thinking about buying but you walk past the Louis store and now look at this predicament a really good rule to use is the 24-hour rule because it gives you 24 hours to see if it's something that you even want if in 24 hours you're still thinking about the purse you still really want it you still are just thinking about all the outfits in your closet that you would pair it with if you keep on thinking about this item and you just must have it then it's okay to go back and buy it using the 24 hour rule prevents you from those unnecessary splurges heat-of-the-moment impulse buys that you really don't need and you regret in like a week or so or a couple days if you can go longer than 24 hours just to test out to see do you really want it that'd be even better because then you're only spending money on things that you truly want which brings us to our next point which is to treat yourself but then also treat your savings account when you do find yourself in a position where you're like I really want that I've been thinking about it it's something that I need but maybe it costs a lot of money or maybe you just can't really justify the price what you still really want it a nice thing to do is to treat your bank account as well so if the belt was $800 or the sneakers were $900 or whatever put that same amount into your savings account it's gonna put a dent into your bank account however at least you put the same amount that you treated yourself with you put that same amount and treated your savings account with two so it kind of lessens the blow kind of makes you feel a little bit better about spending so much money or whatever and then the final tip is to be kind to yourself don't be so hard on yourself take it easy you just might fall off budget one month but there's always another month to make it back and get back on track there's always an opportunity to make money if you spend a little bit more than you need to it is okay you can get back on track one month you might make more money than you need to you might pick up a side hustle you might pick up another stream of revenue it's ok currency comes and goes that's how money works it comes it goes it comes to goes if you put so much pressure on yourself budgeting and your personal finances is not gonna become fun for you it's gonna become a topic that makes you just super anxious it might make you feel like you're suffering in silence or suffering internally and we just don't want that you can turn this into a game find a way to make it fun for you make it exciting for you but don't be so hard on yourself it's okay we've all made purchases that we probably shouldn't have made we've all made less money than we thought we would make for the month we've all spent more money than we told ourselves we would it happens it's okay but as long as you're taking ownership of what you're doing and you're taking responsibility you're grabbing your finances by the bull horns and you're riding it out. I don't know why I did that it's gonna be okay it's gonna be fine in the fact that you're actively trying to fix it it's the first step it's the most important step and you're gonna be good this is your year you've got it under control I believe in you you believe in you I know you do it's gonna be great so for me a way that I am able to make my finances really fun is I use my personal spreadsheet which I'll show you guys it's very beginner friendly so even if you're not too comfortable with Excel you're not comfortable with creating formulas and stuff all of it is automated so all you literally have to do is enter in the figures for every category you can modify and customize the categories as well but I'll just walk you through and show you guys like how I do things once again this budget is available on the good girls gone boss website but you don't need to use this specific one if you'd like you can create one if you're really good with it but of course I would love for you to buy mine buy mine I mean I did create it for y'all or whatever so up here we have my monthly budget you can just change it and it'll be lets see lets you Lyn's monthly bossed up budget because you know I'm bossed up honey or whatever so we'll do job number one I'll do corporate job right job number one and then job number two I'll do YouTube job number three I'll do trophy life hair job number three interest income okay so budget how much do I think I'm gonna make we'll do $8,000 YouTube also I think six thousand trophy life hair we'll do $5,000 interest income $4000 these are just random figures okay guys and then mortgage I'll do $2,000 phone I'll do $200 Internet $100 electricity $50 and then you have all of these categories where you have daily living business expense transportation health insurance education charities so I literally go through every single category and just create something so let's see groceries I'll put $200 savings I'll put five hundred dollars student loan credit card debt will put ten dollars hallelujah books twenty five dollars a month on a book dentist will put two hundred I love going to the dentist honey and car insurance and all of this right so you have categories that you're spending all that on and then like right over here on this side we have a graph that has created a pie chart that tells me how much percentage-wise is being spent on things so if I look at this sixty-six percent of my income is being spent on home expenses of course this is just a rough estimate I literally just through these figures in here but it becomes really fun because then at the end of the month I come back and I do my actual amounts so my corporate job I thought I was gonna make eight thousand I really did make eight thousand there's no difference YouTube I thought I was gonna make six thousand I really made seven thousand so I made a thousand more than I thought trophy live here I thought I was gonna make five thousand I made eight thousand and then interest income I thought I'd make four thousand only made $3500 let's do our expenses so I thought I would spend $2,000 on mortgage I did phone I thought it was two hundred but you know long distance calls to bae so $250 Internet it was $100 for real and electricity I thought it'd be $50 but it was actually only $40 each category it gives me the budget it gives me the actual and then it gives me the difference then I'll go into here at savings I did $500 into savings I did I paid over so I did that amount books I spent $27 on books and over here dentist I spend $500 on the dentist car I spent $300 you know all of this so my budgeted expenses I have a graph over here and then when I come down here my actual expenses I have another graph to show okay I really thought I was be spending a lot less on health which is the 6% right here this six percent but in actuality I spent way more than my budget had permitted so you're able to look at your pie graph and see and analyze that way if you are a visual learner or you can look at just the numbers if you're a numbers learner right over here we have this summary so we have total income actual income the difference total expense actual expense and then the difference it shows a red on my spreadsheet because I didn't conditionally format this version but the one on the site does turn green when you've made more money than less and it also turns green when you spent less than you projected to spend as well so yeah that's the spreadsheet that's the one I created for myself this is very similar to the one that is on the website you have your little tabs here that you can use for every month all the way up to December but if you do end up getting the spreadsheet and you have literally any questions at all you can email me or email the website for any troubleshooting or any issues with the sheet at all it also comes with instructions as well but it is pretty user friendly but yes hopefully I gave you some tips that were helpful for your personal budgeting and saving let's have a discussion down below what are some tips and tricks that you use help your budgeting to stay on track to help you to save help you to budget just to help you have better control over your money I would love to know down below in the comments so you don't leave me a comment down below and I'll talk to you guys in our next video I love you guys so much love you to the moon and back be true to you MUAH!

Channel: Lyn Allure

Views: 86,718

Rating: 4.9740644 out of 5

Keywords: how to budget and save money, how to budget money, how to budget, how to budget on low income, how to budget for beginners, money management tips, how to save money, personal finance tips, tips tricks and hacks for saving money, self improvement tips, successful money magement, making money online, online business tips, think and grow rich, you are a badass, budget planner, spend less money, money saving tips, envelope method, excel personal budget, digital

Id: R-maCPy8Ifk

Length: 26min 41sec (1601 seconds)

Published: Sun Jan 26 2020