Transcripts
1. Course Overview: Hey, I'm Jacob. Finance grad
turned commercial banker. I spent three years
studying finance, one year working
in private equity, and a final year working
as a commercial banker, where I currently sit in one of the biggest commercial banks in the UK managing people's money. So you could probably say
I know a little bit about finance throughout
my seven years of studying and
working in the field. So I'm going to be sharing with you all of my knowledge
about budgeting and hopefully you can pick up just a little bit to be able
to start budgeting yourself. Now, yes, I know budgeting doesn't sound that interesting, but Johnny Depp in 2007
was worth $650 million, but seven years later, he
was only worth $150 million. That's a $500,000,000
difference. So when you think budgeting
is boring, it's really not. This could be you losing your entire net
worth or keeping it. And that's why this
structured course, I'm going to talk about the
foundations of budgeting. Then I'm going to move on to the different
budgeting techniques that you can use
because you know what? One size doesn't fit all
when it comes to budgeting. And therefore, I go through three different
techniques, and FYI, one of them has saved
me so much money, and you can adjust it for
your personal circumstances. Then we're going to get into probably the most exciting bit caveat, I'm saying, exciting,
and it's budgeting. I'm going to be talking
about spreadsheets, and I'm going to be
talking about how we can build our own
budgeting spreadsheet, and you're actually going to
be building it in the video. It will allow you to put all your figures in, see
what your income is, see what your expense
breakdown is, and see where you
can start increasing your savings or start
reducing your expenditure. And finally, I'm going to go on to the optimization techniques. So I'm going to share my
seven years of knowledge, working in finance
and budgeting myself. I'm going to share
how I've managed to optimize my budget
and how I've managed to save those extra
few thousand pounds because spoiler alert, there's one behavioral pitfall, which I used to fall into, and I've made sure that
I've eliminated that, and that has honestly saved
me 3,000 4,000 pounds. So, you know what? I'm not going to waste
your time anymore. Let's get straight in
to the first lesson. Come on, let's get into it now.
2. Why Budgets Fail: Did you know 79% of people say they have a budget and
they don't even stick to it. And a recent study of
1,500 people showed that 60% of people didn't even know how much they spent in
the previous month. I mean, look, we've
all been there and we've all been terrible
with our budgets, but it's time to stop that. There's three reasons why people always fail to
stick to their budgets, even when they create them. And that's what I'm going to
go through to start with. I'm going to go
through three simple, fundamental strategies
that you can use to make sure you end up
sticking to your budget, and then I'm going
to give you a little exercise on what you should do after this video before you even move on to
the next lesson. So without further ado, what are the three reasons why people fail to stick
to their budget? Well, the first
one is people make their budget way
too restrictive. So what a lot of people do is they just kind of
guess how much they are earning if they have irregular incomes
and they kind of guess how much they're going
to be spending in the month. And based on that, they adjust so they know how much they're
going to save and spend. Now, these are completely
arbitrary numbers, and they haven't been
based on a proper budget, and as a result, people make
them way too restrictive. They will think that
they can save 100 pounds when their total salary
is 1,500 pounds. Which is just so unrealistic. And because it's so restrictive, they feel like
they're in a barrier and they can't get out of it, and their way of getting
out of it is just splurging out on their spending. So being too restrictive
is one reason. The second is when people
do create budgets, they forget to do
weekly check ins. Now, I don't know about you, but when you create a budget, you need to make
sure you log all of your transactions in a
budget so that you know how much you spend in compared to how much you
forecast to spend because sometimes it can be significantly different
to what you expect. And this can often
lead to a lot of underspending and a
lot of overspending. As a result, people give up on their budget because they're just not doing these check ins. And finally, people make
their budgets so unrealistic. And often thing that
they do is they just set their savings
goal way too high, it means that they have no money allocated to fund spending, no money to spend on those
takeaways, on those going out. And as a result, they
just sit there thinking, Okay, what can I
do with my money? Because there's
nothing I can do. And eventually, this breaks down and they
completely forget about their budget because
they don't like how unrealistic that it is
and then they go out and. But the good thing is, there are three very simple
strategies that you can use to improve
your budgeting techniques. And that's exactly what I'm
going to go through now. And the first one is
such an easy one. You need to allocate yourself a percentage of fun
money each month. So if you're earning
3,000 pounds a month, you need to allocate yourself
a good chunk of fun money. This can be 100, 200, maybe even 300 pounds. And this fun money is
for your going out. It's for you buying that thing which you
really wanted to. It's for basically enjoying yourself throughout the
month without feeling that this budget is too
much of a you need this money because you spend
the whole month earning it. You need to go and
blow it some way. And by allocating
yourself a set budget, you know exactly how much
you can blow each month. Without that, you end up
blowing significantly more. Secondly, I alluded
to this earlier, but you've got to do weekly
check ins on your budget. If you don't log your
transactions through the week, you're not going to know
if you're underspending and you're not going to know
if you're overspending. Now, if you're
underspending, great, but that means that
excess money that you've got needs reallocating
into something else, I E your savings. That will be able
to grow your money, and eventually you have
more and more money. Now, if you're overspending, you need to know this as well, because you need to start
moving some of your money from your savings into
your spending budget. That is so important
because this is one of the reasons why people fail
to keep up with their budget. And finally, before you
even begin your budget, and it's one of the
most common issues which everyone has, and it's such a
simple strategy to avoid it is before
you start budgeting, you need to take one
month to look at and analyze exactly how much you
spend on a monthly basis. You need to know
how much you spend on groceries, on your rent, on your utilities, on your fuel, on your car, on your MOTs. You need to know everything
because only then can you start basing a monthly forecasted budget
on those figures. Now, without that, you are going to go absolutely nowhere. So now I've just given
you three strategies. I want to make sure
that you follow them. So before you even move
on to the next video, make sure you implement
these three strategies, or you have it drill down into your head before you move on. B in the next video, I'm
going to introduce to you expense categories which revolutionized my
budgeting tools.
3. Understanding Income and Expenses: Mike Tyson, the famous
heavyweight boxer, went bankrupt in 2005, with 27 million pounds in debt, despite earning 400 million
pounds in his boxing career. So you may think you
understand income expenses, but you don't until
you truly track them. And that's why in this lesson, I'm going to go through the different types of
incomes you get, the different types
of expenses and introduce expense
tracking so that you can use what you've learned
from this lesson to help you build your budget spreadsheet
in a few lessons time. So it's going to
be very tedious, but I'm going to
talk about income because believe it or not, there are different
types of income, and there's different
things that you have to do for your type of income. So first things first, you may have regular
or irregular income. Regular income will be
from your employment. So you'll be employment
and you'll be being paid a fixed amount of
income each month. You know exactly how
much you're earning. It's going to hit
your bank account at the exact same time each month, making it super easy to add into your spreadsheet because
it is the same number. However, if you are
earning irregular income, so this could be
you have commission on top of your job or
you're self employed, it depends how many jobs
you get during the month or you do social media,
you have irregular income. And you've probably found it very difficult to track this, but it's super easy
using this method. So what you need to do
is you need to take a three to six month average of how much you earned over
those three to six months. And you need to put that
number into your spreadsheet. Now, if you don't like that and some people don't can go with
a more conservative method. And over those six month
period that you've had, so your previous six
months of working, whatever your lowest
amount of income was, you use that in your spreadsheet because this is going
to severely prevent any overspending and it's going to always mean
that you've got enough money to cover any extra bills that you
weren't expecting for. Now, the second type of
income that needs adding into an income spreadsheet
is side hustles. Outside hustles once again
can be regular or irregular, and they can compose of any
sort of part time work. It could be any sort
of social media. It could be any other
types of commissions you have aside from
your primary income, and they need tracking in your
income spreadsheet because this money can be allocated to your
savings in the long run, which can ultimately
make you more and more rich and maybe even make
you retire a lot earlier. So it's so important that you are tracking your
side hustle income. Now, if it is irregular, please use the
method which I just spoke about with the three
to six month average or using the most
conservative figure that you've got over
the last six months. And finally, one thing
you need to know is the different types of
income that you can receive. This is you got
your gross income, and then you got
your net income. And it's very important you
know which one is which because one of them needs inputting into the
budget spreadsheet, and the other should
never be inputted into your budget because then you're going to have all
sorts of problems. So for you that don't know, gross income is the
total amount of salary that you receive
after any deductions. So I'm not talking
about tax here. So you receive 3,000
pounds in a month, and you could have deductions
such as your pension, your share plan contribution, any sort of private medical. They all get deducted
from that 3,000 pounds per month to give
you your gross income. And based on this gross income, then you have your
tax deductions. So this would be your
general taxation. This can be your
national insurance. This is slightly different
in the US, but in the UK, you have national insurance
and basic taxation. You may have student
loan on top of this after all of
those deductions, only then are you left
with a net income, and with that net income, that is what is going into
your budget spreadsheet. Now that you have those in mind, take a quick note
of your income now. Because now what we're going
to do is go onto expenses. And there is two general types of expenses you
need to understand. First, you have fixed expenses, and these fixed expenses
are your non negotiables. These are the ones
that are easy to predict and it's going to be
exactly the same each month, maybe different each year, but it's going to be
the same each month. And this is super easy. This is going to be your
rent, your mortgage, your phone bill, or your Wi Fi, and any other
subscriptions which you have they need tracking, and they need putting
into a spreadsheet, and they're not going to change. Now, what is going to change is the second type of expense, and this is your
variable expense. Now, variable expenses are things which change
every single month, and this can be
your utility bills. This could be your water bills. This could be your
transport to work. You name it, it can be variable. Certainly groceries and takeaway
is very, very variable. Now, these can be
difficult to track, and this is why when it comes
to a budgeting spreadsheet, you need to know roughly how much you'll spend it on
groceries, utilities. You name all the ones
I've just mentioned. Because it is pinnacle. It is so important to get these right to put it
into the spreadsheet. So they're the two types of expenses that you need
to be thinking of. Now you know what your income
and your expenses are. How on Earth do you
even track expenses? Because obviously,
income is very easy to track because you
know what it's going to be, but expenses are not so. But there are three
great sources of tracking your expenses that you probably
didn't even realize. And my personal favorite is
going into my banking app and looking at my bank statement and printing it off and
seeing it line by line. Now, for those of
you who don't know, you can go into your
app and you can see all the different expenses that you've incurred
during the month. And this is brilliant
because you can see how much it's been and you can
see where you spent it. And I'd urge you to go and print off yours so you can see, because this way, you know
exactly how much you're spending and you can see
where you're wasting money. You can take this
one step further in the second method by
putting this all into a spreadsheet and summing it up and comparing
to other months. But that's getting a
little bit more advanced, and we'll get onto that
later in another lesson. Finally, something which
is way more relevant, certainly in these days
is using budgeting apps. Budgeting apps such
as Emma and Plum are great because they tell you your exact breakdown of income. So you don't even have to use your bank statement or a spreadsheet and
do it all manually. It can be all done for you. So from this lesson, there's one thing
that you need to do, and it is get your bank
statement, print it off, and I want you to highlight
all your variable expenses and highlight all
your fixed expenses. So you have a general idea of your different
expense categories and how much you are
spending each month, because that's going to form
a base to you being able to form the budgeting
spreadsheet later on in this course. Now, next up, I'm
going to introduce to you one of the first
budgeting methods, and this completely revolutionized my
budgeting completely, and it has really allowed me to increase my savings and
increase my investments.
4. Zero-Based Budgeting: M I started using the zero base budgeting
technique quite a few years ago, and it's allowed me to save an additional 3,000 pounds
just by using it. And you've probably never
heard of it before, but you probably understand
the concept of it. So what I'm going to
do is I'm going to go through what zero
based budgeting is. Then I'm going to
go through the pros and cons of implementing it, and then I'm going
to provide you a real life example using my budgeting spreadsheet of what the zero based
budgeting method looks like. So the zero base budgeting
method is the idea that income minus
expenses equals zero. So essentially, every
single pound that you have is allocated to something. Now, let me say
that another way. What I'm telling
you to do is spend every single penny that
you earn on something. So, this may sound really weird, but it does make sense. So now, imagine if you're
earning 3,000 pounds a year, and this was including
your main salary, any dividends, and any
side hustle income. And then you were spending
1,500 pounds on living, food, and other expenses. That means that you've
got 1,500 pounds there. What do you do with
that 1,500 pounds? Well, the zero base budgeting
method states that you should allocate that 1,500
pounds into something else. And this could be
your fun money. So maybe you could allocate
500 of that to fund money, and then 1,000 pounds of that is allocated into your savings
and investment journey. So whether this be a cash ISA
or a stocks and shares ISA, that is exactly where
that money needs to go, and it needs to make
sure it equates to 3,000 pounds because then only then is every single penny being allocated to something. And this is such a great method because every single
penny is allocated, which means that if
you were to earn 3,000 pounds and you just didn't really have a budgeting
technique at all, and you made sure that
2,900 pounds was spent, invested, so on and so forth. It means that you just got
this extra hundred pounds that's just lying
around in your account. Now, who knows what's going
to happen to that 100 pounds? It could very easily
just be spent on something else because you could look into your
bank account and say, Oh, wow, extra hundred pounds I'm premium pretty good
with my budget this month. I'm just going to go
spend that on a takeaway. Or I'm going to go spend
that on a brand new Xbox, even though an Xbox isn't 100 quid. But you
get what I mean. Instead, if you had allocated that 100 pounds in
your spreadsheet, that could have gone into
your savings account, and that could have been
making 5% per year. And that is exactly how I've managed to save so
much extra money because I've managed to allocate additional money
into my savings, and then I've managed to earn an extra percentage on
top of that savings. And that's why the zero base
budgeting method is great. But as with everything,
there are cons. And really, the main
con with this method is that you have to constantly track it
in your spreadsheet. It is a lot of effort to make sure that
this occurs because you can have this zero
based budgeting method all mapped out in
your spreadsheet. But as expected,
sometimes you overspend, sometimes you underspend, and
it doesn't quite work out, and you have to keep on
doing weekly check ins, sometimes even daily
check ins to be able to make sure that
you're on track with this zero based
budgeting method. And that is the issue. If
you don't have the time, it's not really
going to suit you. Now, let me show
you exactly what I mean with a
spreadsheet right now. So if I open up my spreadsheet, we can see I already have
quite a nice template, and this is actually
the template I use. Now, I've used some fake numbers
here just so you can get a general idea for what
expenses look like, what income looks like, as well. But I'm not going through this budgeting
spreadsheet in this video. That's going to be
in a later lesson. But what I want you to
look at now is this part down here where you
can see total income and total expenses. Now, the formula in here to calculate this surplus and
deficit is quite simple. It's income minus expenses. And as you can see, there's 140 pounds 62 pence left
in the surplus here. Based on the zero based
budgeting method, this needs to be allocated into something in my
budgeting spreadsheet. Now, this could be a potential
increase in entertainment. This could push this
up to 250 pounds. So I got an extra 50 pounds
allocated to spend there. Or this could even have
an extra 90 pounds here. This extra 90 pounds could
go into my cash ISA. So this could end up
being an extra 90 pounds added, so that's 690. Now, you see there's 62 pence. That's why you can
literally just add in a ther 62 pence there, and that removes any
surplus or deficit. And this allows you to implement the zero based
budgeting technique to try and increase
your savings. So bear that in mind because we're going to be going
over in the next video a different type of budgeting
technique which can be used in conjunction with
the zero based budgeting, and I've kind of gave it away in that spreadsheet that
I've just showed you. It's the 50, 30, 20 rule.
5. The 50/30/20 Rule: The 503020 rule is a great
method for your budgeting, and even I use this, and I've tweaked it
ever so slightly to suit my personal
circumstances a lot better, which I'll get onto
later in the lesson. But what I'm going to
be going through is explaining exactly what
the 503020 rule is, how you can calculate it, and how you can adjust it, which I was just alluding to. So without further ado, what exactly is the 503020 rule? Well, forget about
income for a moment. Think expenses. This is a method
of breaking down your expenses to make it more manageable and to make
it more trackable. You break it and split it into three categories,
as you can imagine. You have your needs, your wants, and any
savings plus debt. So when it comes to the needs, is 50% of your
income, essentially. Then you have 30%, and this 30% is your wants. This is exactly what you want
to buy during the month. And then you have
the final 20, and this is how much you
want to be saving, how much you need to be
repaying for your debt. Going back again, going
straight to your needs. These are things that you have
to pay for no matter what. So remember, back in a
couple of videos ago, I spoke about your variable
and your fixed expenses. Well, that is where
they'll be sitting. They'll be sitting in
the needs section. This will include your rent, your mortgage, your groceries, any other of those fixed
and variable expenses that you wrote down initially, they will be fitting in there. And this should be exactly or around 50%
of your total income. Then you move on to your wants, and this should be around 30%. And this can be anything from your fun money, so
your entertainment, your going out, your super expensive car that you pay
for on finance, you name it. This is for you to enjoy
throughout the month, and that is 30% as
a general rule. And then finally, 20% of
all your money should be saved straightaway or invested
in paying down your debt. So this could be maybe 10% paying down your
debt, 10% saving. But that is as a general rule, what you should be doing. Yes, it's very difficult for some people
to stick to that, but if you can,
then you're really going to reap the rewards
later in the future. Remember, this isn't
a short term method that's going to make
you rich over time. This is a long term method, which is going to
allocate your money into better places
and which is going to allow you to be
stress free and make money and feel okay
at the same time. So how on earth do you
even calculate this? Well, let's pull out
my trustee spreadsheet again, and I'll explain to you. So, this isn't the same
as my budget spreadsheet. It's just a general
Excel spreadsheet. And here you can see income. So let's put down in
the income that you're earning 3,000 pounds per month. And this needs to be
split into your needs, your wants, and your savings
plus debt management. And as we spoke about earlier, your needs need to be
exactly 50% of your income. Your wants need to be 30% and your savings
need to be 20%. So if we set those as
percentages, you'll see here. Now, super easy to calculate. Certainly, when it
comes to a spreadsheet, you'll take the 3,000 pounds and you'll times it
by your percentage. If you want to be really trusty and whizzy on a spreadsheet, you can lock in the 3,000 pounds and you can pull this
across to get your wants, which is going to be 900 pounds. And then you can
pull across again, and you should be saving
around 600 pounds. Now, you can adjust
this spreadsheet. By this number here, I could change this to let's say you're making 2,500 pounds. Well, these numbers
are going to change. You can see that the
needs are now 1,250. You wants are 750, and your savings are 500. So that is how you calculate it. And I'd encourage you
now to pause the video, get out a spreadsheet or
get out a calculator and a piece of pen and a
paper, do it old school. And do this exactly the
way I've just done it, so you can have a
rough idea of how much you need to be spending on
your needs, your wants, and on your savings
plus debt management, because this is also going
to form the foundation to us building that
budget spreadsheet in a few lessons time. Now, I did mention earlier
that you can adjust this. And what I mean by
that is you don't have to stick to the 503020. You can adjust it so that your needs are maybe
a bit lower 40, maybe your wants,
you're not much of a big spender, so it's 10%. And then it means that you
can have 50% for savings. I do this because I have been very frugal
with my expenses, and I brought my expenses
down quite a lot. So I live in a flat and I managed to bring
the expenses down. I have low utility bills, and I don't really buy
many things for myself, which allows me to allocate my current amount is 55%
of my income to savings. And that's exactly
what you can do. So if we go back to the
spreadsheet right now, we can see that you can have a little play around with this. So if you are earning
3,000 pounds per month, and these needs are
just way too much. You can bring it down
considerably to 35%. And if that's how much you're
spending, then perfect. Your wants, maybe you
don't spend 900 pounds. Maybe you only spend
15% of your income. So about 450 on wants, which means that you have
50% left for total savings, which means that you can
save 1500 pounds in a month. So this is how you can adjust
the spreadsheet and adjust this 503020 rule into
something that suits you a lot better and allows you to have more flexibility
over your finances. And I'll really recommend that. So I'll pause the video, have a little think and do what
I've just done to try and get it into a
general ballpark of how much you are spending
on these three categories. Now, the next method, I'm going to be talking about the envelope budgeting method. It's a bit weird, and yes, it does actually
include envelopes. But we'll get onto that
in the next lesson.
6. Envelope Method (Digital and Phyiscal): The envelope method. You've
probably never heard of it, and it's not a budgeting method which I have
applied before, but it's very good
for people who like visualizing their budget. And that's what I'm
going to go through in this final part of the module. I'm going to be going
through an intro into what the
envelope method is, how you can apply it to
your budget, the pros, its limitations, and a call to action at the end where
I want you to do a task. So what exactly is
the envelope method? Well, it's actually quite simple and something
that everyone can apply, but it requires you to be
quite a visual person and, in fact, get a few
of these as well. So the envelope method is a way of putting your money into
different categories. So let's say you have
several categories. This can include your
variable expenses, your fixed expenses, and maybe some other
expenses you have on the side relating
to another business. Now, within each
of those expenses, you allocate a certain amount of money and you put it
in those envelopes, and you will only pick up
those envelopes and take the money out when you
need to use that money. It's as simple as that.
There's nothing else to it. There's not more technicalities
at all than that. It's as simple as it gets. So, how would you apply this
in a real world scenario? Well, it's pretty much
like I just said. Let's say you have
some other categories. And I'm going to use my
categories for an example. So let's say I have fun money, and I want to allocate
200 pounds of fun money. I'm going to put
that on this side. And then I want
some other money, and this other money is going
to be for my groceries. Anything that's food related is going to come out
of this bucket. Finally, anything in this side is going to be
money for holidays, it's going to be money
for traveling back home. It's going to be anything
to do with my car, and that's all going to go here. I'm going to allocate money into those three different
categories. And when I need that money, I'm going to pull the envelope. I'm going to open it up. I'm
going to pull the cash out, I'm going to put
that envelope back. This is basically going
to assure you don't spend any more money than you
need to on that category. And it is really good if you
can carry cash everywhere. Now, the problem with this is
no one has cash these days. Like, realistically,
are you going to go to the supermarket
and buy a bunch of the to the cash point and go and withdraw cash,
no, you're not. And that's why the way
to do it these days is to set up different pots
in your savings account. So if you have a Chase
account, if you have an Emma, if you have a plum account, you can set up different pots, and it can be allocated
to different things. So you can allocate
it fun money, travel money, groceries,
rent. You name it. You can put them all
into different pots, and then you can take money out of those pots
when you need to. So what are the pros
of this method? Well, as I said,
it's very visual. It allows you to see exactly
how much money you've got left in each of your pots that you
can spend each month. That is about the only pro that I can think of
for this method, and it's kind of littered with
so many more limitations. The limitation is, yes, you're going to have
to get cash out. Yes, you're going to
have to use an envelope. But other than that, it's
not a very efficient way at all because that money could be in a bank account
earning interest, but instead, it's in an
envelope collecting dust. Not really something
you want to be doing, but I thought I should
highlight all of the different
budgeting methods and give you a different idea
because you know what? Maybe the two methods which
I've already mentioned, the zero based budgeting and the 503020 doesn't suit you at all, and that's where the
envelope method can be a good tool for people who don't get along with the other two that
I've mentioned. Now, if this method is for you, what I want you to do is I
want you to go to the store, go buy some envelopes,
withdraw cash, and try this method for a month, see how you get on with
it, see how you like it. And if you don't go to the other two methods
because in my opinion, the other two methods are a
little bit more efficient. Now, in the next lesson, we're going to get deep
into the spreadsheet, and we're actually
going to be building the first budgeting spreadsheet. We're going to use all of the knowledge which
I've taught you, and we're going to put it in
to the Excel spreadsheet. So, come on, let's get
into the next video.
7. Creating a Simple Budget Spreadsheet: I'm glad you've made
it this far into the course because now we're going to be doing is
the exciting part. We're going to be creating
our own budget spreadsheet. I have used these for so long, and it's really helped elevate my savings and my
tracking of my money. It's really, really helped me allocate where our money
needs to go and given me a lot more confidence and stress relief with how my
money is being managed. So let's go into the
spreadsheet, and let's do this. So we've got a Excel
spreadsheet out right here. And the first thing
that we need to do is track our income. So let's create a
column called income, and let's use our currency,
which is the pound. Let's have some example
income such as salary, side hustle income, or any dividend income that
you might be receiving. What we want to do is put
this into a nice table. So what we can do is
we can hit Command T, and my table has headers. Okay, there we go. So we've got three incomes in
there right now. Let's put some pretend
numbers in here. Let's say we put 2,500 pounds, side horsels generating 500, and dividend is bringing a
further 80 pounds per month. Now, this is only really
a quarter of the story. What we need to do now
is create our expenses. And as I've been talking about in many of my other lessons, which I was saying, we need to split this up into
different categories. And what I'm going to apply here is something that we learned
in lesson number five, and that is the 503020 rule. So I'm going to be breaking
down expenses into the needs, the wants, and the savings. And I'm going to
be using the 50, 30, 20 percentages, too. So let's do that now. Let's call this
column the needs. Let's have this as the wants and have this as the savings. Now we know the percentages, so I'm not going to do much
with that now, but in fact, I will add in the 50%
above the 30% and the 20%. Add that there, add
that into percentage, and let's make this
look quite nice because we're going to have
several lines of items here. So let's go command T again. And let's change the
colour of this table, so it's something
slightly different. So, now's the fun part. Let's add in some random
expenses into this 503020 rule. So for needs, what
you've got is your rent. So your rent could end
up being 700 pounds. You could have utilities, which are around 60 to
70 pounds per month. You have your Wi Fi,
which can be ten pounds. In fact, that is so unrealistic. Let's go 25 pounds. Phone bill, which
can be seven pounds. And let's say you have
also your car insurance, which is around 100 pounds per month and maybe
some car finance, which is around 500 pounds. Now, what we want is
a little sum total, but I want to put it
into our categories. So let's go down here
Ns wants and savings. Let's create a sum formula. Let's sum this row. There we go. Now, let's
fill in the wants. Let's say we have
entertainment of 300 pounds. Let's say we have eating out of 150 pounds and just general
fun money 200 pounds. And then in savings, let's say we are
going to be saving around 500 pounds per month. Now, what you can see here is the sum totals down
at the bottom. We can make this look a
little bit nicer again. Let's put this
into a nice table. There we go. Now, you know what would be really
interesting to see it against the percentages. So if we were to put in here, take our total income. So, in fact, it'd be quite
good to calculate the sum of the total income,
which is 3,080. And let's use that
times by our 50%, and let's do it for
the other ones. I am aware there's a much
efficient way of doing this, but I want to show you how to do it so it's nice and clear. So what you can see here is I've broken it
down into categories, and it's interesting to see that with these mock expenses, you can see that, well, we are just under what
we need to be hitting. This one we're
significantly under, and this one we can
even increase, as well. So, look, we can even
increase the savings to 616. We can increase our wants. Let's say, our fun
money can now jump up an extra 300 pounds to 500. And our needs, well, you can't really adjust
needs that easily. But straightaway
there, we made a very, very good income tracker, and let's take this one step further by seeing how much
surplus we have left. So we've got our total expenses, and let's sum up here. So we'll have a total
column. And we can see that. We're actually spending
a total 2,968 pounds, which is actually
under 3,080 pounds, meaning that we've
got a slight surplus, which is always a good thing. Now, if you were to follow the zero based
budgeting technique, which I go over in
the fourth video, well, in that case, we would have to make
sure that our expenses equate to exactly 3,080 pounds. Now, how would you
do this? Well, we could increase a few things. We could potentially increase our savings into a
different savings account. So we could increase
this by 112 pounds, which will bring us up to the 3,080 pounds limit.
So that's perfect. Now, this is really nice, but let's make it a little
bit more visual with a pie chart to break
down our expenses. So what we can do is we can go with our needs,
wants, and savings. We can go insert
recommended charts, and straight away, pie chart. And we can see we can call
this expenses, breakdown. And straightaway, we have a very visual idea of how much we've got
in savings each month, how much we've got
with our wants, and how much we're
spending on our needs. And it's honestly
as simple as that. Now, this is a very
simple spreadsheet. So let me show you one which
I created and which I use. And it's, in fact, one which
I have used previously. Now, you can see here this is the one which
I currently use, and this is the one
which I'm going to be putting into this course so that you can
alter and adjust. But it is so easy that I've just shown you to
create a budget spreadsheet. And what I encourage
you to do right now is to follow this video, add in your expenses, and add in your income, and see what it equates to and
create it in the same way. If you don't want to
do that, just click the link below and grab the file and put your numbers in and make sure you
follow either the 50, 30, 20, the zero base budgeting, or the envelope method. Now, in the next modules, I'm going to be
showing you exactly the different tips that you need to be using
to make sure that not only you stick into
your budget spreadsheet, but you're also maximizing
your money to the MAX. So I'll see you in
the next lesson.
8. Leveraging Budgeting Apps and Tools: Apps have completely revolutionized
the budgeting space. So yes, I've just shown you through a budgeting spreadsheet, which is my preferred method, but there are other ways
of tracking your income, and this is through using
different budgeting apps. And I have one
which I've used for quite some time now alongside
my budgeting spreadsheet. And I'm going to show this to you as another
method of budgeting. Now, I'm going to talk about
one app in particular, but please be aware there's lots of other different
apps out there. The app that I'm
going to be talking about is an app called Emma, and it's a personal
budgeting tool. It's free, but you have got a subscription to get the P. But there's lots of
other different versions, such as Money Farm and Plum, which are other brilliant
absolutely brilliant apps that you should
certainly check out if you don't particularly
like the Emma platform. But I'm going to
be running through my personal finances and going through the entire app and showing you how
easy it is to use. So think of this
lesson as more of a demonstration as to what you could do with apps like this. So without further ado, I'm going to open up my iPhone and I'm going to
show you this app. And by the way, it works
on iPhone and Android, and it even works
on the computer, but you don't quite have
the same functionalities as you would do if
you had the app. So come on let's get into this and have
a look at the app. So first things first, we click into the Emma app, and it'll ask you
for your face ID, and instantly you're
presented with this feed. And this feed shows you
your everyday expenses, your savings, your investments, and your total net worth. So it's really, really good. Now, what you can do is you
can go into each of these, and you can look at
your everyday expenses. You can see how it's
performed over six months, one year, one week,
if you want to. You can scroll down, and you can see I've got two
accounts linked to this. So instantly you got an overview of your
everyday expenses. Then you can go into your
savings and investments. Now, I don't have
anything set up here, but what they allow
you to do is create a 3.75% pot where you
can put money into, which is just fantastic. And finally, it'll
calculate your net worth. And this is probably one of
the most exciting things for me because you can see the
assets which you've got, you can see the debt which
you've got, as well, and then obviously, it
calculates your total net worth. So I really like to see
this and you can just see how your net worth
has been changing. Look, you can see that
mine was once 8,000, and now it's suddenly
negative 265 pounds. Now, there's so much more
to the app than this, but that gives you a
very quick snapshot of how you can budget. You can scroll down and you can see my latest transactions. You can see I spent three
pound 19 at Amazon. You can see in my
Chase Roundup account, I had 81 pence, another roundup. And you can open this
up, and you can see all of the other transactions
which I've made. So you can see there's
quite a few here, and you can even click on them, add a tag, share the bill. Which is quite a cool feature. So you can send to your friends, Look, you need to pay me this. This is the amount. Can
you do this, please? And one of the things
which I really like about it is you can actually
add receipts, so you can click
Photo, choose PDF, or take photo, which is definitely a feature
which I quite like. Now, you can scroll down
a little bit further, and you can see this
analytics and budgeting part. And straightaway, you
can see your income and your spending. So I don't know why it's
come up with 17 pence, but I'll probably need to link one of my other accounts to it to be able to see my salary
and my YouTube income. So you can come
down here and you can see how much I
spent on shopping. You can see how much
I spent in general. So it is generally a very good app, and
it's quite visual, too, because you can see the different charts,
spend over time. Category based on the pie chart. And then you can come down
here and see if there's been any potential
fraud or whatnot. And then on top of that,
you have your savings pots, which you can put
money into, so 3.75%. Then if you really
want to, you can open up an investment
account in this app. So as you can see, this is a perfect example
of a budgeting app, and you can see how
much it can do for you. The main advantages are
everything's done for you. It's fully automated. You can easily see your money. It's live from all your
different bank accounts. But the limitations that you can't really adjust
it for how you want to. So with the spreadsheet
which I created, you can use the 503020 rule. You can adjust this
into a different rule. You can make your own
pie charts and make your own different alterations
to the spreadsheet. But with a budgeting app, you're kind of stuck with
the stock that it gives you, and that's probably
a disadvantage which might turn
some people away. So it's really about
you trying to weigh up your pros and
cons with having your own budgeting spreadsheet
that you create or using your own budgeting app and
figure out which is best. Now, also remember, a
budgeting spreadsheet is free, where a budgeting app, you have to pay for
the pro version, which will give
you more features, but at the end of the day,
you're paying a subscription. Now, if you can justify
that subscription by saving more than the cost of the baseline subscription cost, then go for it. But if you can't and you're
not really going to use it, then I would certainly
recommend to not use it. So now we've gone through
the different budgets. In the next lesson,
I'm going to be talking about how
we can cut costs down and your quality of
life still remains the same. So, come on, let's get
into the next video.
9. Cutting Costs without Sacrificing Quality of Life: A lot of people that I've spoken to have said they cannot afford certain things because they don't earn enough money
through their job. But I'm going to spin
this on the head and say that sometimes it's not about how much money
you're earning. It's about how much
your general costs are. And when I say general costs, I'm talking about
fixed expenses. A lot of people tend to have
very high fixed expenses, and then they drown out their potential spending for other things such as fun money. I E, entertainment, going
to the cinema, eating out. So what I'm going to do in this lesson is going to go
through three different things where you can very
easily cut down your costs whilst maintaining
the same quality of life, which will allow you to have more money to spend on
the things that you want. So technically, improving
your quality of life. So first things first,
one of the things which I see people massively overspend on on a day to day basis is
groceries takeaway food. So in the UK, the average
weekly shop is 63 pounds 50. Which is a very reasonable
amount per person. However, on top of this, people spend an additional
54 pounds on takeaway food. So in total, you're spending nearly 120 pounds
a month on food. Now, when you look
at takeaway food, 54 pounds will probably get
you two meals in total. Whereas if you were to
batch cook your food, those two meals could end
up costing a total of five, six, maybe even seven pounds. Takeaway food is extremely
expensive and in most cases, very unhealthy for you. So if you can aim to cut back on the amount of money that you spend on takeaway food, then you will find that you will have lots of money left
at the end of the month. So if we take the
average of 54 pounds and you drum that down
to around 30 pounds, well, you're going to be
saving 25 pounds a week, which in total, is going
to save you 100 pounds. And that 100 pounds
can be allocated to things that you actually
want to go and do. So that is one of the major
areas that people overspend, and that's what I
highly recommend for you to try and do a
little bit of an audit of your takeaway food and
the groceries that you're doing and see if you can cut
down on those takeaways. Now, the second biggest one, and this has been massively rising over the past few years, and it is subscriptions. A study showed that on average, people waste over
400 pounds a year on subscriptions because they only use their
subscriptions maybe once, twice or three times
in an entire year. And what a lot of
people tend to do is they have lots
of subscriptions. Now, I'm not just talking
about your Netflix, about your Amazon Prime
or your Paramount Plus, maybe even your
sky subscriptions. I'm on about other subscriptions
that you may have, such as your Apple storage, such as your Amazon
subscriptions, for example, your toothpaste that
you get regularly or your shaving cream
that you get regularly. I'm also on about
other subscriptions, such as your phone, if you've got it on
Finance or any of the courses that you're
paying for on Finance. All of these
subscriptions add and eventually crowd you out or being able to
buy anything else. One of the common things is
when people have Netflix, Paramount, or Disney plus, and they're not
even using two of those subscriptions or
they've got sky cinema, and they're not even
looking at that at all. Now, that is totaling to a lot of money per month and a lot of wasted money because you
might as well just say goodbye to your 400 pounds
when you receive your salo. You might as well just chuck
it in the bin because that's essentially what you're doing by not doing an audit of
your subscription. So that's what I would
recommend you doing, doing a proper audit of
the subscriptions that you use and the subscriptions
that you don't use. Now, the rule which I follow is, if you haven't used the
subscription in one given month, well, that subscription
needs to go. Be if you haven't used
it in that month, there's obviously a reason
why you haven't used it. And therefore, that reason
is the reason for it to go. So I would highly recommend
getting rid of subscriptions, which you don't use because that would free up
a lot of money. And finally, if you are a
homeowner or even renting, you will have utility
bills that you pay. And utility companies
draw you in initially with a great
offer, and then three, six months later down the line, they slap you on
with this horrible, uncompetitive rate, which is miles away from everyone else. So what you need to do is you need to use
websites such as USIch to analyze your
utility bills regularly. You also need to do this
for your phone bills, for your WiFi, because you can very easily start paying
more than you need to, and then before you know
it after a year or two, you've ended up overpaying thousands of pounds
just because you didn't look at a
website which probably would have taken
you 5 minutes Max. So that's my three biggest
tips for you to do. And what I want you
to do right now is do exactly what
I've just said. I want you to go
through your groceries, go through what you
spent on takeaway, and do an audit of how much you're spending
and cut it out. I want you to go through your subscriptions and
the ones which you're not using and which you
haven't used in the past month, it needs to go. And finally, I want
you to look at utility websites and see
the current rate you're paying and the current
rate that they are offering and get rid of your current one, which
is not competitive. Anyway, we're going
to be getting into some exciting things
in the next lesson. So, come on, let's go
watch the next one.
10. Automating Savingsand Bills: We've all been there
when we receive our payslip and we're overjoyed with how
much money we've got, we go and spend the
money during the month, and then halfway
during the month, you realize that you have a 400 pound bill which
needs to be paid. But you didn't even realize
you completely forgot, and quite frankly, you don't
have the money available. This is where automated savings and bills will really
come in handy, and it's something that's really revolutionized the way
that I spend my money. So in this video, I'm
going to be talking over what exactly it means to automate your savings
and your bills. And then I'm going to go into the features that
you must be using. And by the way,
I'm going to talk about a feature called roundups, which you probably
haven't heard of, but it's such a great feature. So first of all, what exactly are automated
savings and bills? Well, as soon as you
receive your salary, you need to be
having direct debit set up so that as soon
as that money hits, all of your bill money
comes out straight away. So what it means to
automate a savings is to use the app to be able to automatically set up
direct transfers into your different accounts and into the different bill
companies as well, so that what you
are left with in your account when you
wake up in the morning is the amount of money
which you can save and is the amount of money
you can freely spend. Oh, what features can we
use to be able to do this? Well, one of the first ones and one of the ones
that just been around for so long is just
simply direct debits. So obviously, a direct
debit is something that you set up from
your bank account into another bank account
where that money goes automatically without
you having to touch it. And I would recommend if you're going to set
up a direct debit, it needs to be for
the bill companies. So if you have a utility bill that comes out, a water bill, a Wi Fi bill, a phone bill, try and make sure that aligns all on the same day as payday. Now, these companies are so flexible with the date
that you want to do. For example, I have a
council tax bill that I pay, and I make sure that aligns with my payday so that everything
goes out on the same day. You can very easily
do this by going onto the website and
just changing the day. But by doing this and
setting up a direct debit, one, it means you're
going to avoid any late fees of
forgetting to pay. And two, you're not
going to have to think, Oh, my God, I need to
pay for these utilities. I need to pay for
this phone bill. It's going to be
automatically paid for you. So direct debits are
an absolute must. Another thing that you need is automated transfers
from your account into your other accounts. So you want to be saving a
portion of money each month, and let's just cast our eyes back onto one of the lessons
which I taught you, I, the 503020 rule, where 20% of your income has
to be saved each month. You want that money
to automatically go into your savings account, and that is where
you're going to set up an automated transfer from your main salary account into your savings account so that it's automatically done for you and you don't have
to manually do it because the amount
of times that I've told people to do this
and they forget to do it, and consequently,
they end up spending that money rather than
saving it is unbelievable. They should not be doing it and you shouldn't be
doing it either. And finally, one of my personal favorites
and something that's been introduced recently
is roundup accounts, and I use this with my
JP Morgan Chase account, and it's so good. What it allows you to do is every time you tap
and spend your money, let's say it's 70 pence. It will automatically round
up to the nearest pound. So this would be 30 pence in
total to make it to a pound. This 30 pence will go
into a roundup account, and this round up account
has a higher interest rate. This higher interest rate obviously pays you more
money on your money. And it's a very easy way
of saving your money throughout the month
because you're not even having to
think about it. Instead, you're just rounding up every single time
you make a payment. So I managed to accumulate over 100 pounds in
my roundup account, which is paying me 5%, which is a very
competitive rate. Now, if you have this feature
with your apps, do it. Absolutely do it. I don't know why you haven't
done it already. So actions from this is make sure you set up a direct debit, make sure you change
your dates of the payments onto the
day of your payslip. Make sure you set up a
roundup account and make sure you set up
automated payments.
11. Monthly Review Tracking Progress: So you've built
your budget tracker and you're starting to input
all of the numbers in, but you're going to be
missing out a key thing, and you've got to be doing this in your budgeting strategy. And that is monthly check ins and monthly progress checks. Looking at where
you're currently at, how your budget has performed, are you putting in the
right figures? Are you not? What adjustments can
you make? All of these questions need
to be answered, and it's all perfect to do that in a monthly progress check. And that's what I'm going
to show you in this lesson. I'm going to show
you exactly what I do at the end of each month. Once I've got all my expenses, and know exactly how
much I've spent, I put it into a spreadsheet and I compare with what I forecast, and if it aligned, if not, I need to
make some changes. In this video, I'm going
to be talking about actual spending versus
forecasted spending. I'm going to be talking about overspending
and underspending. And then I'm also going
to be talking about reallocation and
rollover funds so that any extra money which you
didn't spend or money which you did spend is figured out
for the following month. So what we're going to
do now is we're going to dive in to the
spreadsheet which I created and the one
which I would encourage you to go and download and
play around with yourselves. So looking at this right now, we can see the spreadsheet, and this is, in fact, my budget. This is very realistic
numbers from what I spend on day
to day, my income. So you're going a first
scoop of how much do I actually earn because I don't broadcast this to
many people at all, but I think it's best if I use these numbers because
it's more realistic. It just gives you a better idea. So the first thing that I'm
going to do is I'm going to compare these forecasted figures against my actual figures. Now, I've got them written down already because
I came prepared. So I'm just going
to look at this and go through this list to
see if anything's changed. So, first off, with the salary, this is a job, so this is
exactly the same each time. Stool was ever so
slightly different. It was 76, and dividends
was only 56 pounds. Now, expenses, rent was 700. Utilities was, in fact, 46. Groceries were 234. Transportation, I didn't go into the office as much
as I expected, actually worked out as 115 45. Phone tower was the same, Wi Fi the same, water was 23 79. And the money which
I spend to use my YouTube channel to
have the Skillshare up was actually a little
bit more this month. It was 140 pounds. So instantly, that
was 280 pounds, and I think it
would be useful for me to put my percentages
against this. So if we just set
this as the 50%, set this as the 30% and
set this as the 20%. We can sort of compare
against what I was. So, entertainment, how
much should I spend? This wasn't as much as I
expected 149 pounds on the dot. Dining out was a bit more. It was 140 78 Canva was the
same, Apple was the same. So you can already
see that the desires are so much lower than what it should be, so I'm
pretty happy with that. This was slightly different. I was trying to do the
zero based budgeting, but it was slightly
different this month, but it was actually 700. So that is my budget changed, and what I'm going to
be doing this time around is keeping these
numbers as my budget, and that's what I'm going to
be aiming towards this time, because I think this is a
fairly realistic amount, what I spend in the
month on a usual month. So I'm going to keep these
numbers exactly like that, so I'm rolling it over
to the next month. However, what I'm going
to have a look at now is the surplus and
deficit which I accumulated. So this is going to be
the rollover funds. So you can see here on
the surplus deficit, we've got the 61 pound 80. So I've actually saved myself 61 pound 80
over that month. And I've now got that
set in my bank account. It needs to be
reallocated somewhere, and I need to do something
with it right now. Now I can either allocate
that into some fun money. But my recommendation is
with this sort of money, you should always just
put it straight into a savings account because
you've got surplus. You've got other
money coming in. Why not just put that straight
into a savings account? And that's exactly
what I'm going to do. So I'm going to
take 61 pound 80, and I'm actually going to
put it in my cash ISA. So it's actually
going to end up being 761 pound 80 pence. So that's giving me a
surplus deficit of zero. I've rolled over those funds
into my savings account, and that's exactly
what I'm going to aim for next month, too. So that is how you track your expenses and your
income each month. Now, I would really
recommend you doing this because
by doing this, you're just seeing and just checking how much you're
actually spending in the month. What I've done on this piece of paper is I've basically just gone through all of my different
expenses for the month, and I've just gone through
my bank statements, and I've just written
them down because I managed to categorize
them quite easily, but files you and it is
your first time budgeting, make sure you print off all
your transactions and just input it into a
spreadsheet or have it on a piece of paper and
highlight because it really, really is super helpful. So now, in the next video, I'm going to be
talking about the behavioral pitfalls
that people go through. And this is such a big one because even myself sometimes falls into these
behavioral pitfalls. So if you can avoid them
throughout your budgeting, then you're going to be
in a great position. So let's get into
the next lesson.
12. Overcoming Common Budgeting Pitfalls: I mentioned at the beginning of this course that 70 to 9% of people that have a budget
fail to adhere to it. Now, in this video, I'm going to be talking about
three different methods to avoid falling into the
behavioral pitfalls of giving up on your budget. I'm going to be talking
about three main things. First one is going to be
about budget burnout. Next is going to be about
slipping motivation. And finally, I'm going
to talk about setting aside buffers for those
unexpected expenses. So first of all, budget burnout. Setting rigid categories that you need to adhere to and follow each month is setting yourself up for a
recipe for disaster. If you're going to set
really rigid categories and you're not going to go
over those categories at all, and you're going to make
sure you hit them, well, it's almost like a overload in the brain and you're constantly
thinking about money. Budgeting isn't
supposed to be that. It's supposed to be enjoyable, it's supposed to be
easy and flexible. If you've got rigid
categories and rigid expenses in your mind, you're never
going to stick to it. It's like trying to
cut out unhealthy food entirely and tell
yourself that you're not having anything ever again. Well, you're never
gonna stick to it. You're going to end up having
a little bit of fast food, a little bit of bad food. And then you're like, Oh, I
actually really like this, and then eat even more
fast food. I know. I can't believe I'm comparing
budgeting to fast food, but here I am and here I
am doing it right now. You need to make sure that you do allocate fun money
into your budget, and it's exactly what I've done. I've allocated a small amount,
but I stick within that, and I don't feel like I'm really stuck into my budget
expense category. Next one is slipping motivation. Now, it's so easy to
give up with budgeting. You run out of time,
you're tired from work. You want to do things
on the weekend. But you need to hold yourself
accountable to budgeting. And there's so many
ways you can do this. But some of the ways
I've done is by joining Facebook groups because then you can talk about your
budget with other people. You can read about
what they're doing. And it's really good because on those times where you just feel like you can't be bothered, can look on the group,
and you can see that everyone else is still
sticking to their budget, and it just gives you that
little bit of motivation. The other thing is start budgeting with your
friends, with your family, with your partners,
start bringing it into the conversation,
start talking about it. Start saying how you've
saved this much this month, and start saying
about how you're investing in this,
that and the other. All of that brings it into
the forefront of your mind, and it just helps if having
that conversation with your friends because if you're
having that conversation, you're going to end up
doing it more often, and that's really, really
good for your budget. And finally, you need
to make sure you set aside buffers, because, yes, you could make a
perfect spreadsheet, but you're not going
to have accounted for this unexpected expense
because it's in the name. It's unexpected. You're not going to be
able to think about it at you're not going to
be out to forecast an unexpected expense. This could be your
car breaking down. It could be your
fridge stopping. It could be your dishwasher
needing a new one. So you need to allocate a little bit of a buffer
into your spreadsheet. Now, I'm not talking
about an emergency fund. I'm talking about just adding
a little bit of a buffer. And this is going to mean that your zero based budgeting isn't necessarily going to work. But if you allocate a buffer into that zero based
budgeting method, let's say, 50, 60
pounds a month, then if anything does go wrong, you've got that little
bit about money, and if it doesn't, great, you can put that money
into your savings account. So that's three
tips that have come from me personally and something
that I've experienced, and I want to try and spread this recommendation to as
many people as possible. So I'd highly recommend just
making sure you do that. But anyway, congratulations for making it to the
end of this course. Let's get into the course recap.
13. Course Recap: So you made it to the final
video the course recap. So congratulations for
finishing this course. You've done great. I really hope you've learned
lots of stuff. We started off by laying the foundations
of what budgeting is, the common mistakes, why people fail, and some
ways in which you can try and improve your
budgeting techniques and just keep and adhere to it. Next, we moved on to the different budgeting
methods that we can use. One of my personal favorites is the zero based
budgeting method, incorporating in
the 503020 rule. But you've also got
the other methods such as the envelope, and that is, yes, a really weird method,
but also great. We then went on to actually building the
budget spreadsheet. We finally got into something
a bit exciting to build. I hope you've enjoyed that bit, and I hope that you can use the spreadsheet which
you built in that video or even the
spreadsheet which I've got linked in this
Skillshare course. Check that out because there's also a little task that
I'm going to give you, so make sure you wait until the end of this
course recap video. Then I went on to ways that you can optimize your savings, optimize your
budgeting strategies, making sure that you avoid those common pitfalls and making sure that you just really stick to what you are trying to do because the worst
thing to do is to start really good watching this course and
starting your budgeting journey, and then giving up
later down the line. So just make sure
that you stick. It's all well and good that
you've listened to it. Here from now, from today, you are going to take action. And your first action is, make sure you get that
Excel spreadsheet, which I've linked in
the Skillshare course and start filling out
all of your expenses. It starts today and
you need to start. So make sure you input
all of your figures, all your expenses,
all of your income. And just start budgeting
month on month. Now, it doesn't have to be a strict for the
first few months, but you'll get stricter
and stricter and stricter and you'll get better and better
and better at it. So make sure you follow
that spreadsheet, because if there's
anything that I want you to take from this course,
it is that spreadsheet. Forget about
everything I've said. That spreadsheet is the key to you doing great
in your budget. And I hope that
I'm going to save you lots of money in the future. There is soon going to
be a bonus Q&A video. So please please please drop a review or a
comment on the budgeting, and I will create
an entire video on your common questions. So thank you so much for
watching this course. And if you are at all interested
in investing side, well, I have another course investing for beginners on Skillshare, which you can watch today. Thank you so much for watching. And please check out the
other Skillshare video.
Jacob Phillips, Banker + Youtuber
