Personal Finance for Beginners | Budget to Financial Freedom | Rob Armbruster | Skillshare

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Personal Finance for Beginners | Budget to Financial Freedom

teacher avatar Rob Armbruster, Investing and Personal Finance

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

7 Lessons (19m)
    • 1. Financial Freedom Introduction Final

      1:37
    • 2. There Will Always Be Enough

      2:46
    • 3. Why Budget?

      2:54
    • 4. Creating Your Budget

      3:49
    • 5. Mistakes to Avoid

      3:38
    • 6. Moving Towards Financial Freedom

      2:34
    • 7. Next Steps

      1:42
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About This Class

It's never too late to start managing your money really well! In this class, you'll learn how to create a budget and take steps towards financial freedom. I'll show you how it's possible to be generous, fun, and have enough money to save at the end of the month. In this class I cover.

  • There Will Always Be Enough
  • Why to Budget
  • Creating Your Budget
  • Mistakes to Avoid
  • Moving Toward Financial Freedom

Class Resources

This lesson is not considered licensed financial advice. It is purely for educational purposes to empower you to manage your own investments. Future decisions that you make are done at your discretion.

Meet Your Teacher

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Rob Armbruster

Investing and Personal Finance

Teacher

When I was 24 years old I was sitting in an office with a financial advisor. After he showed me the fees associated with him investing my money, I left the meeting feeling uncomfortable with his proposition. This is how my investing journey started. I began to research how to successfully manage my own investments and found that it was easier than I thought. Today, I'd like to pass on what I have learned over the past seven years of managing my finances to you. 

I have a passion to help people from every race, ethnicity, and background discover their ability to make great wealth! My classes provide the basic fundamentals of making great long-term financial decisions. Please follow this page so that you won't miss any of the great resources coming out in the future!

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Transcripts

1. Financial Freedom Introduction Final: I just believe that it's never too late for you to start managing your finances really well . I've sat with hundreds of people through the years going over their finances. What I found is many people want to keep a budget but have trouble following through with that much. What this class is about is yes. It gives you the practical of this is how you create a budget. I'm gonna provide a spreadsheet for you. That's really great for getting started. But going into how to live it out and how to create a budget that doesn't take all the fun out of your life. I've seen people on both extremes where they start budgeting and they start becoming non generous people. You know, it becomes this thing where I want to hoard this money. But then again, I've seen other people who they have a great job and they have a great income. But there, on the other end of the spectrum, where they're not managing their money, well, you're gonna come away from this class being ableto understand what's important to you and coming up with creative ways of how to spend your resource is on what matters most to you when you keep track of what you spend your money on, it's the first step towards financial freedom. This class is going to be your first step towards being more financially free. 2. There Will Always Be Enough: There's a couple of important truths that I want to make sure that you understand before we start budgeting. It's this one. There will always be enough for you, and that might sound extravagant. But it's true. Growing up, we actually didn't have very much money. I grew up a single parent family, and a lot of times we were living month to month. There were times where we didn't know if the mortgage was gonna be paid. There was times where we had to cut down the amount of food that we're eating. But there always seemed to be enough at the end of the month for our needs. Coming out of a place of thinking that you don't have enough isn't a healthy place to start budgeting from. If you don't believe what you have is enough already than what you earn is never gonna be enough to satisfy you. The truth, ISS that no matter where you're at or what you're doing, there's always enough for you to be able to provide. There's always enough resource is to be able to go around so that everybody can live a great life. That's not just dreaming or fantasy it really is true. There's something beautiful about budgeting from a place of knowing that there will be enough, rather than budgeting and penny pinching and holding on to as much money as you can have because of a fear of there not being enough. The second lie that people believe about their money is that it's too late to get back on track. And the truth is, it's never too late to get back on track with your finances. The American and international financial systems are actually very forgiving. Justo share a personal story. My dad filed bankruptcy because his business completely failed in 2008 during the Cows ing crash. But today he's actually a successful business owner. He's a homeowner because of the decisions that he made. What I want to say to you is, it's never too late to start making the right financial decisions for your life. I want to encourage you, Teoh really lean into this, even if your bankruptcy, even if you you don't have a house to live in, even if you're um struggling with food, it's never too late to start getting on track, Which is why I'm excited for you to complete this budget in class 3. Why Budget?: Nobody wakes up in the morning and says, Man, I can't wait to budget. It's just not something that comes naturally to us in this section. I'm gonna go over why we manage our personal finances. Budgeting is the only way to keep track of how much you're earning and how much you're spending. And to be able to see that side by side and compare it, you can see how much you're spending on things that you need and how much you're spending on things that you want. The other great reason to budget is it gives you a good self awareness of what are the most valuable things to you in your life for me. When I first started budgeting, I was very surprised at how much I was spending on food every month. Food for me had become something that was bigger than it should have been in my life. It was a really helpful journey for me. Toe learn. Oh, Rob, I'm gonna limit you to going out to eat 10 times this month, and that was so good for me. I didn't hit that the first couple months, but then finally, three months in, I hit the budget target that I wanted for my food. The next great thing about managing your personal finances is it allows you to put your resource is towards what you care about the most. And so for me, foods important. But it's not like the most important thing in my life. And so what happened? Waas. When I started going out to eat less, I was able to tip the waiters and waitresses when I went out to eat more. For me, generosity is really important, and so that just made me a happier person to be able to be more generous in that area. The other thing that's great about budgeting is it allows you to form your lifestyle around how much you're earning for me, just practically. I actually take dates to Barnes and Noble bookstore, and you might be You might be laughing at me right now, but it's actually a pretty good place to take a date. It smells good, and there's books to be able to browse and coffee. It's just a really creative way for me to still have a fun lifestyle, but also have that be within my financial means, So that's What I would encourage you to do is think of creative ways for the amount of money that you're spending to match your lifestyle. Having a budget doesn't mean the end of all having fun in your life. Really, it's finding those creative ways so that you can put your money towards what matters to you most. 4. Creating Your Budget: All right, So now I'm gonna teach you how to set up your budget. Practically the first thing that you need to decide is what program you're gonna use to track your expenses. Now you can use Excel, and that is the most popular program that people use to track their budget. It's really helpful. It gives you the most flexibility. Also, there's something about manually entering the expenses that you have every month into excel . That helps me keep track of everything. There's also other programs that you can download toe help you with your budget. If you want something to track, you're spending, and one of those is mint dot com. And what mint dot com does is they'll track your spending, and you just need to upload your banking information into the AB, And every time you swipe your card, it will automatically enter it into the APP and categorize your finances into different sections. I have the links of these Different resource is in the description for this video. If you would like to look at them so the first thing to do when you're budgeting is creating your categories on. This will be different based on what you spend your money. Everybody will have categories for the necessities. Food, clothing, housing and transportation are viewed as the necessities for a budget, so you definitely want to have those categories. But then you can go on down the list and add the unnecessary things into your budget, such as entertainment, fun, sporting equipment or books. When I have my budget books was part of it, I'm gonna show you a trick that I use. I create a target, but I want to hit every month. That's what a budget ISS is. It's a target. I have my projected budget. Then I also have another tab in Excel for my actual budget. The projected one is what I want to spend on these things, and the actual one is what I end up spending in these different categories every month. This is important because I've never hit exactly what I have set per month. I don't want that pressure to be on you to be like, Oh, I need to hit $600 for this. I wanted to be able to adjust a little bit, too, what you're buying and what you're spending on and having a projected budget and then your actual budget is just a good thing to do, and it allows you to track your progress. So there would be times when I first started budgeting that I did not hit my food budget for the 1st 3 months. But I got closer every time. And so I was like, Well, I didn't hit my food budget that month, but I'm gonna keep the target here. It's next month now, I didn't hit that food budget, but I'm gonna keep the target at where I wanted to be. I would recommend going over this every month and making adjustments accordingly. Say transportation is not really costing you as much as you originally budgeted for, because gas prices go down or something like that, adjust that part of your budget and then be able to use that money in a different place. This is the spreadsheet that I've created for you to be able to make your budget. I'm also gonna attach this spreadsheet in the class Resource is section for you to be able to download 5. Mistakes to Avoid: all right, so here are some mistakes to avoid when you're creating your budget and starting to manage your finances better, the first mistake would be not budgeting for generosity. This is so important to remain a generous person. Even with the budget. I personally have a certain amount of money that I have budgeted that I give away Teoh organizations or people. The next mistake to avoid with your personal finances is trying toe live at, ah, higher lifestyle than your finances can afford. They'll get a house that's just outside of their price range, and then they'll buy a car that's just a little bit outside of their price range. You can get caught paying off these debts that are a result of you living at a higher lifestyle than you can afford. The third thing that I would say to get you in a great financial position would be to pay off all in your credit card debt as soon as possible. What happens with credit cards is any amount that you have on your credit card at the end of the month. That interest rate averages 20% on that amount That's left. You can really easily get yourself into some pretty scary death. If you continue to carry a balance on your credit card, I'm in a place where I never carry a balance on my credit card. That's what I recommend, and that's what's worth working towards is never pay interest to the credit card company. You can use a credit card. Just make sure to pay it off every month. A trick that I do, too, is I pay off my credit card weekly every week. I'll pay it off and pay it down in that way. Just between my bank account and my credit card, I never think that I have more money than I actually have. If that makes sense, that other mistake that I see when people are managing their finances is they don't budget for the fun things. They end up not following their budget all and throwing it out because they're on a vacation. Make a plan toe. Have fun money in your budget, however many dollars a month for that vacation or for that fun thing. Don't limit yourself and take away all your hobbies and all the fun stuff include that in your budget that allows you to also track that and really keep that at a manageable place to you wanna have fun? But you don't wanna have the kind of fun that takes you outside of what you can afford. The other thing that I see people doing to avoid is build up your savings account before you start investing. You should have at least 1000 to $2000 in your savings account for emergencies before you start looking at investing. And that is just a great cushion to be able tohave because let's be honest. Life happens. There's things that happen, and having that emergency fund is really important for those things. It's not an emergency fund. As in, it's an emergency. I need Teoh by this wedding ring or not an emergency like it's an emergency. I need a little bit better car, but it's it's genuinely a fund for those emergency type situations. Like if a window in your house was broken or something like that, 6. Moving Towards Financial Freedom: the great thing about moving towards financial freedom, you get to be able to use your money for what you're passionate about, and you're less focused on fulfilling needs. All your needs are fulfilled by the way that that you've budgeted and manage your money. Now you can use your money to go and take somebody out to a nice dinner. Or you could give to charitable organizations or support a cause you're really passionate about. What would it be like to be able to do any home improvement project at your house that you wanted to do, especially if that was something that you were really passionate about and then also starting businesses. As you move towards financial freedom, a business opportunity presents itself to you, and you could jump on it right away because you're ready. That's what I would like you to do is put these things into practice and find something Teoh you that's worth saving for. Find something that's worth doing this for and then go for. Another thing that I personally do is I buy quality things. I actually shop at Trader Joes. It's just a great place. My whole thing about a budget is not to get the cheapest, but it's to get the best. When I was working in the banking industry, I had a man sit down at my desk. He was looking to get a home loan from me. He was dressed very nicely as occupation was an engineer, but he actually ended up not being able to get the loan. If you can guess why things were looking pretty good on the outside like he made over $250,000 a year, he wasn't managing his finances very well. Even with $250,000 a year because of the house that he lived in, the car that he drove. I'm not sure where all of his money was going, but it was obvious that things were being mismanaged and we actually were able toe offer him alone. He had too much debt versus the amount of money that he had coming in, and so I just gave that example to you. Don't be that person who spends more than their earning. It feels so good to be able to spend less than what you're earning, and it's it's a beautiful thing because that means you're giving more to society than you're taking. That's a really great place to be 7. Next Steps: So here's what I'd like you to do with what you've learned in this class. Your class project is to download the spreadsheet that I've provided and create your own budget. You can do this through the spreadsheet provided, or you can choose your own website or platform or whatever you would want to use. Take the tools that we talked about and create the targets that you want to go for in your budget every month. The other resource that I want to let you know is available to you is my investment classes . I've created a number of different investment classes that teach you how toe invest in the stock market. What are the different investment types, how to research stocks and a lot of other stuff, and those are available in the resource is below. And then the other thing, the last thing, if you could please leave me a review, that would mean the world to me. And that would also help me know what you enjoyed about the class, what you liked, what you found that was helpful to you and maybe even something that you didn't understand or something that I overlooked in the class. That would be so amazing. I have full confidence that you're gonna move into a season of having more than enough, and you're gonna move into a season of becoming more financially free. I'm so excited for that. And I'm so excited for you to start living in the fruit of the things that you're learning today. And I will say this. The fact that you're just taking this class means that there's something happening and that there is a positive change coming to your finances and budget. Thanks.