Budgeting 101- The 3 questions you need to ask yourself

Friday, April 20th

It's important to know your numbers. How much is coming in and how much is going out?

We'll help you make sure you are budgeting your money the right way.

This week Jodi Arbogast, Financial Counselor at Family First Credit Union will help us step by step Budgeting 101

 

00:18:03

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Is going to be deemed most clear concise and lesson in budgeting one know why would. It is seven figures and all the information that you need to dominate your finances I can CD while others and they thank you so much for reaching out to me and please if you ever have any questions as best of this podcast this board is for you it's here to help give them. Because everybody's in a different financial spot but it doesn't matter where you Bart there's always something to learn south I've gotten a handful of emails asking. How do you start of budget every financial expert bulls say OK got to get your finances in order but it starts with the budget. What's the best way to do we actually their acts for Jodie harbor gas from family first credit union. Topic but today I don't like this is what you loved it there is an identity. It is what I love again I love helping people with their budget and getting them into intense spot. In you making it easy to understand which is nice so let's get everybody in a good spot we could do okay. Winning team member comes CEO and says listen. Jody I don't know where to start I don't know what to DO. When you tellem. I've are there have been banned. In Turkey crashed that I and I say OK after that. I know where my money out. Do right now how much I and and a weekly monthly basis and into dental for example. Morning coffee or lunch says you know even your guests negotiate an entertainment all under. Like I was in Sudan helped a now and then and laughed quite. Can I ask. Is do you know if you bring home enough money to cover your monthly and I've. And spending. And many time the answer to one or more of these questions. In now. And that tap. Because if you don't know. And you can't man she. You can't move on to any other steps. Right OK without understanding that you're spending. Right out. I think we all have been where month it didn't feel like we spent a lot and then you look at the credit cards Damon a comb through your account and I were extend our money now. No news out there have been very easy first stat. To understanding where that money wet. So if your native you know and you really wanted to take the bull by the horns. Very can track your spending for two week. Okay we don't make any adjustments to what you do adjust. You know trek you dad and sat down to incidental to do like what we discussed earlier you know the coffee avalanches. Gas and groceries. You know how you do that I did not appear you can make it count on Furrey charity just break down. Can Martin's or whatever for a copy you know and how much is that. On you're gonna need to be able that total lead. OPEC to be completely honest track and penny. Average even if it's the kids come home with you know I got to by the Mother's Day moms or whatever it may be now. OK at the campground at about it I'll direct this is a percent of by the way we're gonna do this a cat. So I am. And again like if I don't make any gas. Two years and just track and bad why you're checking your spending you know UN whoever is out of them household video I don't why it. Chipped it down one EE and make a list of the bail. That you pay. You're very simple again just had a paper create Power One or Eric. Like the name of the bell and they beat and it's due and the amount that's usually get. So in debt would be fair monthly Bill Lawrence don't forget those bills that might come out to automatically. Like gym memberships are not. Or even insurance. Insurance can't count you out on the kids' sports scene and another one that you might not pan am monthly Dave as. That might be an you know quarterly year out wanted to even things garbage picked up water is usually quarterly. What I bots should you do is. Pat GAAP quarterly amount. That you usually pay malt I I work at their port quarter and they here. And then divide I twelve because ultimately. You're gonna pump water bill on map that rats in you should be saving each month. Yeah yeah and we'll get quarterly bill when it comes to deal so you're not compact track. Okay Larry that's yes yeah okay. So an and you and you mentioned current trance and I did the water bailed renters insurance through another one you might not think about. Bet it comes out may be quarterly. It just you know sit down and brainstorm okay those kids were out like a fat you know actually you know. And deal summer off collar base oh and then ask about the winner whatever. Ticket take an average you know how much you spend on those set aside from money each month to that your not hit all want. Because ultimately I know it tax time and wherein tax time right now. A lot of people like to play catch up with those debt tax money that I wanna try to move till we happen. Because that tax money should be leaving the country now for a picnic and come out. So ultimately that's our call to ditch out a budget and to get from the previous school for it. And it is giving you brought up tax amount apologist for his second there are a lot of people. Who say baby look forward to getting their tax return because. They see it adds. Free money even though it really he isn't free money. Now you'll surcharge for that money via the issue did not getting at all what do we meet. You know do we need anything for the house or do we need anything's gonna park it should be. You know. Like like on that front if I didn't dating maybe you're trying to save our how to protect out. Patrick good chunk to put away for a down payment I house. Yeah now three years you'll have. You know average return it like to grants 2500 dollars you know three years shall have. 6008000. Dollars investment could tell Spector closing costs or how could cool. Either and I again if you can put up a budget you're not looking forward to that tax bill to quote unquote catch up. Continuing on here with our budget. So figured we tracking you've gotten you're gonna add up each like item that's tracked for example article after seats to gather all the gushing sheet to gather that trap. And then you should be able to take that number for each item that you tracked and double to get a monthly amount. Okay. And then you're gonna add each of those items to your it was built using the portal for the month and the payment amount for them. Now you'll have you know crushing line and gas why ruled. You know and then had them I want I mean. Copyright if you wanna get back a step back yeah you know if you wanna but generate down to act so. I am so you did slip into you know should now be like a snapshot of what you pay out in among. So you can add all the peanut client. To catch a grand total and righted at the bottom. Mike tricky out a little house. I. Don't include things like a mortgage or rent paid it's going to be a big number yeah now it's going to be a big number. Don't let that don't let it. Freaking out as we're gonna deal with that you know and then we're gonna be seen what your net income net to help ox that. Dog in this fight with most of this number I can work together right we're working together. Can help you know what you need to lower that number of that. That's a different time that. A I know it's obvious fact that you want to find out what your true monthly income is using your neck or your brain all pay. Not your grow. I can't see that might be harder for some people depending on my year profession as sales people I could only imagine how. News how tough that is to really solidify that number. Yap. Tell so let's talk about let's talk about Barry got a what you're saying out commission. If you get straight pay. You act together and figure for the war here. That you had you know just what you're bringing home on your street. Okay and guaranteed guaranteed money OK okay. So then with your county commission. The fact we began an actor at daycare would be if you're spending your job birthday two years. Usually tax returns and use your commission amount. UW cues or opt your mom last paycheck. Of the year. Add them together. Divide by 20. And then tonight I do well to get an app branch. What you brought in per month for the last two years. That's what we do when we determine a lot. And come for a lot so it's a very good indicate air okay. Why. To bring home is now the flip side of that is expected gross amount. So unique traps 20% from that commission or else they care. Together true brain can't. Help I didn't confuse speed. So daddy is for her the person who has the commission. GAAP measure and now this is there's a house back into it okay Sarah now for everybody else to just makes hair here's my coach Jack. Yep here's my forty hour week poll you should be able to take a paycheck where you were just straight forty hours. No monitor over time NN. And you should be reviewed study that. Bring home and they act can. Multiply it IA if you paid I. On a weekly I can't speak to you if you're paid on I weekly by twenty effect. If you're paid I'd monthly by 24. To get an annual amount to. And then divide that by twelve to get your monthly. Net income. Money that's coming in the house this is how much money you're working with here. Cracked. So now I'm assuming you're gonna say we're gonna compare these two numbers. We are and hopefully not passed out. Felt you're gonna pay well and you're gonna do have been out for. Each person that's bringing money into how to get that monthly amount to no good couple eat Yugoslavia. Add those together. And then hopefully those two numbers together is more they and the bottom line on your budget she so and dedicating it kind of relief. He you know would you like Tokyo where Macon and Warner are they so close let me be your little content. How much of that gap do you blocked and obviously the bigger the gap the batter. Rack but what is a safe area. Tell also okay get her bills paid on time and have a little lecture its use save for that emergency find in and pay off debt. Right what's not figured into that budget sheet that we had to create is saving unless you put it on man. There's no savings then act so if you want to add evenings and at that. Usually have a different and that number. I at least two to 500 dollars. Because everything else should be included in that budget. You know hair cut. We we've allotted for the entertainment. You know. Two to 500 dollars you should be saving a month. At least at B. That's our problem work. To really sit down with your significant other it's just you just sit down and work out these numbers crunch these numbers find those two numbers and see the difference and wounding. Bigger gap the batter. After the on a good sense of what is coming in and what is going out but the numbers are too close for comfort or. The money that there spending is more than them money that they're bringing in. Do you have a son. Advice or tips to kind of you know she gave some at bats and expense off. That you know the biggest one is are shopping their insurance that. And you should be shopping your insurance has every two to three year. Because of insurance companies will compete. Or your. So you should. Me looking at you know I'm Blaine if you can homeowners and car insurance or even renters and car insurance. On can be bundled helping to reduce expenses. Many insurance that the UK and eight hour or com drivers safety course will reduce your insurance as I tend to thirty per. Jodi that is dynamite to do list for ever thank you for reminding me I guess I didn't. You know and do you know eight hours of your life first 30% after car insurance he's kinda like it now bring. And in many case is yet you're right in many cases it's online tipsy and Paul buzzing go back to that whenever. They are minor if you ask I know I can ask friend who who they they go every three years. They do they go to this class together and they have a fun day out there and do. You know if yes are okay now so damned Leger president because actually I just. Within the last few months revisited my insurance I took it for granted I didn't I guess you don't even think about it because you're ready just automatically comes out. And you forget about it so. And my sister who's in net industries sent what are you to hear I'm not even taking advantage of what I should be my sister does this for a living but she's an let me shopping around for you. Because there are some insurance companies that don't give you agree initial rates. And then they do all after three or four years increase that rate. My thinking in the end you may find you know you aren't getting the best deal with your current air show it but. Our own net subprime you to make sure that your making sure you're targeting that could be. Yes you cannot forget about that insurance is the big one okay and there great take away. They cue company and then on my to do list everybody asks. Okay now in two weeks we're gonna come back together and we're gonna have our numbers and then you're gonna help us. Do other little things to help shaved down. But our expenses right on bent the act. Is Jodie said she has a plus the brunt of ideas for. I did well I didn't know I just you know if they did get time and they are fighting men felt concerned. I don't plan to take a bracket and look at the big picture you know different they're budget in their current situation. You know that can change. You can make some healthy changes that they act. You know so that you won't be careful concern under anxious about it I don't want anybody to get there are some about the situation once they get back. Everything effects of. Absolutely you are in your spot right now you don't have to stay here right now I'm. Jody armour guest from family members credit union thank you so much for everything that you do it from being out being on the podcast but that's. Thank you for having me and I look forward thinking he didn't yeah. How relationship with money the way we've learned how to budget our money really starts with our parents how we were raised. And I was raised in in a household where my daddy. He was gearing blunt he just told it like it is and he taught us so many. Valuable lessons about money in I appreciate. All of those lessons and still to this day I'd lean on dad helped lots. So like we do with every episode we leave you with my dad Father Knows Best night dead nineteen cents. Have a great weekend to think you for checking out the podcast again this week telling friend about it and give us or review on iTunes. And dominate your finances. Over 70%. Of the NFL players. Have gone bankrupt after only a few years in retirement. At a rate of 60%. NBA players do a little better but still go to grow at a rate much higher than the average population. Few people live Macon millions. So it's important to understand that it's not about how much you make. But how much you spend that can email your financial future.
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