Jason had an amazing opportunity to interview Joseph Sangl, blogger & author of “I Was Broke And Now I’m Not” and “What Everyone Should Know About Money Before They Enter THE REAL WORLD”.
Check it out as they unpack one accountability tool
that may save you $$$$ !!!!
JASON: Budget sounds like hard work or something to outsource. What exactly is it?
JOSEPH: A budget is nothing more than preparing a written plan for each dollar you will be paid during a set period of time. BEFORE the month begins and BEFORE the money is paid to you, I recommend that a written plan be prepared that details where each of those dollars will be spent. This process of preparing a plan in advance allows a person to have choices and will allow the money to be used to its maximum potential. In fact, I think it is EZ to budget. INCOME - OUTGO = EXACTLY ZERO. Exactly Zero is EZ!
JASON: What's the best way to launch into budgeting for the first time (or the first time in a long time)?
JOSEPH: Pull up one of the free budget tools from JosephSangl.com - click on "TOOLS" (HERE). Start just before a month begins. Enter all of the income that you expect to receive during that month. Now spend all of that money on the known expenses. Make sure that the budget includes giving, saving, and spending. When just starting out, it might be helpful to have a "We forgot" line in the budget with some money allocated because you will forget something!
If married, I recommend that the budget be prepared TOGETHER.
JASON: How much financial / math/ computer experience do we need to budget?
JOSEPH: Luckily, a budget does not require calculus, trigonometry, or even basic algebra! It is 1st-grade math - addition and subtraction. A piece of paper and a calculator will work. If you have basic computer skills, use one of the free budgets from the website to do the math for you!
JASON: What are 3 things that someone should know in order to maximise their time invested into budgeting?
JOSEPH: (1) planned money goes farther than unplanned money,
(2) use rough estimates for items like electricity or gasoline (petrol) - it does not have to be planned to the penny (cent), and
(3) If married, both must buy into the plan. If one spouse is not willing to follow the plan, this can quickly become a worthless exercise.
JASON: How long does it take to really get a budget up & running?
JOSEPH: Generally, it usually takes two or three months. If it is a really terrible financial situation where financial restructuring of loans/selling of vehicles/selling a house is required, it can take five or six months.
JASON: Will your methods or advice work for any income or debt level?
JOSEPH: AB-SO-LUTE-LY - with one single exception: This stuff will not work if there is zero income. The basic fact remains true - to have outgo, there must be income!
JASON: What are some of the obstacles that people may face no, let’s reframe that – what are some of the opportunities that people may come across when budgeting?
JOSEPH: Obstacles faced could include facing reality for the first time. Recognizing just how much a car or a house is destroying the finances is very tough to face. Most people discover just how much they are spending on "impulsive" categories like groceries, dining out, clothing, shopping, entertainment, and general spending money. It also helps them understand just how much money they are spending on insurance and other routine expenses that we tend to keep "out of sight - out of mind".
JASON: Seth Godin recently published a blog called “Watch The Money”. It included the thought “Money is more than a transfer of value. It's a statement of belief. “ Does a budget make a statement about our belief? If so, what type of statements have you been exposed to in your quest to help people with their personal finances?
JOSEPH: I agree with Seth. It is common knowledge that you can tell what is important to someone simply by checking out their calendar and their bank account. We will invest money in the things we treasure, cherish, or believe in. I have seen statements of "I can't ever have enough" where there are millions of dollars saved up and none being given away or spent. Most commonly, I see statements of "I deserve this - I don't care what it costs or if I can repay." This statement leads to immense grief and sorrow.
JASON: What sort of things can someone do for momentum & consistency?
JOSEPH: Obtain new quotes on insurance. Use cash envelopes for groceries. Use coupons. Sell some junk that you no longer need. These activities free up margin in the budget which gives considerable momentum and consistency. Save money! There is NOTHING like an emergency fund of money to help one stay the course toward financial freedom - even when negative financial events occur.
JASON: What other resources would help people on this journey?
JOSEPH: Budget boosters section of our Next Steps website (HERE).
My book, I Was Broke. Now I'm Not. and its related six-week Group Study. My new book for high schoolers, college students, and 20-somethings, What Everyone Should Know About Money Before They Enter THE REAL WORLD. Dave Ramsey's book, Financial Peace Revisited. CNN's Personal Finance website. Yahoo's Personal Finance website.
JASON: How can people connect with you?
JOSEPH: People can contact me or ask financial questions via the "Email Joe" link at JosephSangl.com
