My Money Paycheck Budget Routine (Do This When You Get Paid)

Transcript

hey guys what do you do with your money every single time you get paid do you have a routine that you go through with your paycheck let me know if you do in the comments and even if you don't drop that in the comments as well guys now hey all of us have routines for everything in our life right we have a morning routine some of us have a bedtime routine some of us have a gym routine a lunchtime routine whatever it may be guys but a lot of people don't have a routine for their money what they do every single time they get paid on this video I'm going to give you my money paycheck budget routine and talk about what I've done over the years I'm gonna give you eight things now the very last one is the fun one that we all want to do so I want you to stick around for that one now listen guys the deal is hey we all want to stop living paycheck to paycheck now I'm not gonna lie to you guys and try to be dishonest to you on this video I'm gonna be totally honest with you and tell you that you can follow the things that I give you on this video but it's not necessarily going to make you stop living paycheck to paycheck you have to have discipline and consistency over a long period of time to actually get out of the routine of living just paycheck to paycheck now right now guys there's lots of people especially in America who make a lot of money but are still living paycheck to paycheck according to a CNBC survey around 58 percent of all Americans are still living paycheck to paycheck and according to the Lending Club survey that number is actually 60 percent and that's because a lot of people just don't have a routine for their money so let's jump into it guys the very first thing is I always do a budget before I get paid before I can touch the money I've already done a budget for the money that's number one I already have a budget written out ahead of time meaning hey I don't get money until I've already spent the money on paper first guys it's sort of like when you build a building right whenever a building is built anywhere on the planet there's always plans before the building is built there's already drawings and everything's laid out how we're going to do this listen to that everything is done on paper first before they actually start so think about your money the exact same way right before the first stone is laid or before any dirt is moved there's a plan you don't build buildings without having a plan first you don't get money without having a plan for that money first your budget is your blueprint your budget is the architectural plans that's laid out for your money before you receive the money your plan for execution and what to do with your money is just as important as anything you ever do with the money and your budget is your plan now guys I do what's called a zero-based budget and a zero-based budget just means all the money is spent every single dollar before you get the money now some people like other budgeting strategies there's the 50 30 20 strategy where you take fifty percent of your after-tax money and pay your needs and your obligations and then you take twenty percent of your after tax money and you pay your debts and any savings emergency savings and then you take 20 percent of your after tax money and that's where you do all of your wants and your fun things right 50 30 20. then you have the 80 20 budget where you spend eighty percent of your money on your needs and once and then you spend twenty percent of your money on savings and paying off debt so it depends on how you want to do it guys 50 30 20 80 20 or the zero base budget but you gotta have a plan for your money before you even get the money hey guys this channel is growing tremendously I just wanted to take a moment out to say thank you very much for subscribing for supporting and for being a part of a smart money bro Community here on YouTube now number two is this number two the second thing I do every time I get paid is I pay my Necessities I take care of all of the needs now the one thing you got to think about guys is what is needs and what is wants right I know it sounds really Elementary to figure out what's a need and what's a want but oftentimes people kind of mix the two together in other words guys you need Transportation right but you don't need that BMW you want the BMW to ride around in right you don't need the BMW you just need Transportation you need shoes but you don't need the latest pair of Air Jordans right you just need some shoes you may need a purse but you don't need the thousand dollar purse right but oftentimes people get their needs mixed up with their wants but it's all about delaying gratification and first taking care of what you actually need with your paycheck or with your money so pay your needs first and then we'll talk about later your once hey guys if you're getting any value at all out of this video do me a favor smash the like button and please share this video with someone you think could use this information and if this is your first time here please consider subscribing to my channel I really appreciate it now the third thing I do every single time I get paid no matter what please please please consider this if you don't do it but I do it every single time and it's I pay myself first now this money is already taken out of my check before I see it because I'm already contributing to my jobs 401k or 403 b in my case it's a tsp because I work for the federal government so I already contribute this money automatically it comes out before I even see it because what I want to do is I want to pay the future me I want to take care of the person down the road 20 years down the road I want to take care of that person I want to pay their light bill I want to pay their cell phone bill I want to pay for their food I want to pay for that person's rent or or mortgage whatever I want to take care of me the old me so I'll go ahead and pay myself first out of every single check now guys this has been built into my routine since 1994. there's been a few years a couple of years that I didn't contribute to my retirement fund within that time frame but for the most part guys it's been a fairly steady and consistent contribution every time I got paid now listen I don't prefer that my family and friends friends and kids and grandkids and the government I don't prefer all those people take care of the old me I prefer to take care of the old me by doing what I can do right now to put aside as much money as possible and every single time I get paid I put a little bit to the side for that now my suggestion guys if you want to escape living paycheck to paycheck and Escape having other people taking care of you in 20 and 30 years I suggest you do your best and try to put aside ten percent 12 percent 15 percent or more of your money every single time you get paid now the fourth thing I do every time I get paid is I save for emergencies I put a little money to the side on my budget I have a little line item that's saving for emergencies to build that money up now thankfully I've built the money up and after so long of doing this guys you get three to six months of your monthly expenses put to the side in your emergency fund for emergencies but it's very important because guys things will go wrong so just put it in as a line item on your your budget every single time you get paid or you could do it on a monthly basis whatever it takes but try to put something every time you get paid to your emergencies now number five is this I have a separate savings for regular reoccurring things that I know are going to take place every single year for example I want to buy a few people some Christmas gifts every year so every time I get paid I put money towards that savings I know that I got to pay property taxes on my home or at taxes on my automobiles or my assets right so I put a little bit of money to the side for those things every single time I get paid they're not emergencies they're just things you know you have to pay every single year and they're not surprises right they're not things that just pop up and you don't know where they came from you know they're coming you just got to prepare for them early I take that money out every single paycheck it's a line item on my budget now the sixth thing I do is give if you look at my budget guys at the top of every budget I've done for the last 20 plus years is the word give whether that be tithing giving to a homeless shelter giving to a domestic violence shelter or helping somebody individually whatever it may be guys I prefer to be giving every single time I get paid because it's a principle that giving when you give you can't just take take take from this world you got to be giving something back and give your money if you can give your money and I know people say you can give your time and you can give your energy and your effort but I like to say give money even if it's just five or ten or fifteen dollars every single time you get paid give a portion of it to help somebody else give a portion of it to go towards something a cause that you believe in trust me guys that principle works and some of you may be saying I can't afford to give anybody anything listen you can't afford not to again even if it's five or ten dollars just purpose in your heart to give something every time you get paid and some of you may be saying hey I live in an American city that just costs way too much I live in New York City I live in San Francisco I live in uh Seattle I live in a place that's way too expensive listen you can always move to a less expensive place it's a hard decision for a lot of people I totally get it but if you can't afford the lifestyle in the city that you're living in you've got to pick up and go somewhere where you can actually afford to live and there's some cities that are very very expensive in America but you also have the ability the choice to pick up and try to restart somewhere else where you can afford the housing right or forward Transportation or Ford a vehicle now I'm not telling everybody to move I'm just telling you you got to do what you got to do to get to where you want to get to now the seventh thing I do is I pay off debt every time I get paid now thankfully for me in my situation I was just able to get totally out of debt just a couple of months ago so it's fresh and brand new to me but every time I got paid for many many years guys I put a small portion of that towards debt debt on things that are going down in value depreciating items paying that debt off because debt is robbing you from money debt is taken away from the income that you get that could be going towards investing for the future or something different right get rid of your debt as fast as possible one way to do it make it a line item in your budget so that every time you get paid you're paying a little bit off on your debt I don't care if you use the debt snowball method which is where you take all your debts listen from smallest to largest and pay each one of them with a set amount and then roll that money over and pay the next one Etc or if it's the Avalanche method where you put them in order of highest interest and pay those off whatever it may be guys come up with a system to pay your debts off and one way you can do it is by every time you get paid put a little money towards your debt and be aggressive with it right don't play with debt because if you play with debt it's going to hang around for a lot of years I can attest to that right I did a video not long ago guys talking about how I was in student loan debt for more than 30 years literally more than 30 years so trust me when I tell you you want to get rid of debt as soon as you can now number eight I told you to stick around for number eight because number eight is the fun one the one thing I want you to do and the one thing I do with every single paycheck I get is I have a little bit of fun with the money right I take the money and I say hey how can I have some inexpensive fun with thirty dollars eighty dollars a hundred dollars just something so that I can feel like I'm getting some reward at the end of my money and I'm not just shelling my money out to every other place but I'm actually using my money to have a little bit of fun for myself now me guys I'm a very low maintenance guy it doesn't take a whole lot for me to have a lot of fun doesn't take a whole lot of money right I can go to the park and have a good walk and feel just fine it may not be the case for you but whatever you do don't allocate huge chunks of money for you to have fun now this one's number eight and it's last because this is your wants I want you to take care of all the other stuff first and then when it comes time for you to have fun take whatever you have left or whatever you allocated towards your fun and spend it on yourself so because you're taking care of your wants with your fun money down the road after you've done all the other things in this video that I mentioned it gives you a sense that I'm able to actually do something with my money at the end of the day and for a lot of us guys that makes work actually worth it now for me guys I've never needed fancy clothes Fancy Shoes fancy cars I've never needed those things to feel good or to have fun or to have a good time right those things just don't do it for me but they may do it for you and that's okay right everybody is different now listen personal finance is personal everybody's situation is a little bit different this is what I do with the money I get every single time I get paid what you do May slightly differ so I hope I was able to give you guys something to think about when it comes to what to do with your money every single time you get paid I've done these things for decades Guys these are the things that ultimately allow me to stop living paycheck to paycheck you guys do me a favor drop a comment below and let me know what you do with your money every single time you get paid smash that like button for me and please share this video with someone who you know could probably use this information check out a few of these videos right here for more on managing your money on your way to Financial Freedom the best person to take care of the old you is the young you do me a favor take care of yourself but also take care of other people until the next video peace