Closing - Keep Learning and Keep Earning

Lesson #3.2 Budget For The Real You, Not The Fake You (Only Use Real Numbers) (01:20 mins)

There are 2 types of budget numbers – the ones in our head, and the real numbers.

And just like counting calories while dieting, we are likely to underestimate how much we eat and overestimate how much we burn.

You might think that estimating the numbers will work, but believe me, the fastest way to blow up a budget
is to build it with the wrong numbers (i.e. numbers from your head) or leave out half the items.

  • Write down the real costs of your priorities.

This will take looking at your bills, bank statements, credit cards, etc or thinking in advance (and researching) the true cost of that spring break trip you want (for example)

  • Budget for your real costs (even the ones you’re trying to cut)

If you smoke but you’re trying to quit, still budget for the cigarettes.

If you give your mom gas money sometimes, just make a plan and budget to give it to her.

It might be tempting to think you’re trying to cut a habit so you don’t need to plan for it, but all you do is set yourself up to have an unreal budget with unaccounted-for expenses siphoning away your funds.

Own who you are, even if you’re trying to change it.