Budgeting for Beginners - How to Make a Budget From Scratch 2024

Budgeting allowed me to payoff about 70k in debt, build a 6-figure investment account, and get my spending down to less than $1,000 per month. That’s the power of a good budget. 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 😎Call Me😎: https://bit.ly/30IBr0i 😎Second Channel😎: https://bit.ly/3c4sVPS 👨🏽‍💻Financial Freedom Course👨🏽‍💻$100 OFF CODE: LONGTERM Link: https://longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom 1. The Things on a Budget that everyone has - These are the cost of living that everyone will have - Unless they live at home with their parents - Which is okay honestly and its something to take advantage off First Income: - How much do you make - Type of Income - Time traded for income - Let's say I have three sources of Income ( so I don’t get robbed by showing my real numbers ) Office Job: - Income: $4,000 dollars Per month - Type Of Income: Active Income, have to trade Time for Money - Time: 160 hours a month or 40 hours a week Stocks: - Income: $500 dollars per month - Type of Income: Passive - Capital at work: $75,000 with a 8% return - Time Savings: 240 hours I don’t have to work Real-estate Investing - I have one apartment that I paid $60,000 for - It makes me 250 dollars a month or $3,000 a year (6% return) - That’s 120 hours I don’t have to work Total Income is: $57,000 a Year Second Expenses: Shelter Cost: - $1,500 dollars on mortgage, a home on 15 year mortgage Cost $200,000 Utilities: $500 - Water - Electricity - Gas - Internet - Phone bill Food Bill $500 - Cooking at Home Transportation $300 - Gas - Insurance - Maintenance - No a car payment Total Expenses: $2,800 2. The custom things you can add Personal: $300 ( fun, subscriptions, and misc ). Left Over: $900 in savings 3. The different goals ( Less needs less money less time ( payoff house, no debt, and so on ) Remember Time is Money: - Because you trade time for money - So on your budget Let's run the numbers on a Time basis and see how you can save more time Shelter: $1,500 ( if I use my $900 left over to dumb into this property ) - I could be done with the property in 7 years - So instead 60 hours of work on a house - I would be spending $200 between ( insurance and taxes ) – 8 hours Food: an option is to grow your own food but that takes a lot of work and a person who may want to homestead and not everyone is down with that - So this pretty much stays the same Utilities: - You can save money by becoming energy efficient but again that can be expensive - So let’s keep it the same Transpo: - Public transport or biking - But most likely you’ll keep your car So How to get back those hours from those expenses: - You get them back by investing more money - $900 for 7 years got 60 hours each month you don’t have to work - You keep investing, and then you can make supplemental income to cover those cost - The goal should be, to get your Passive income to cover your expenses ( so you don’t need to trade time for money ) * PRO TIP* INFORMATION IS EVERYTHING 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻 https://discord.gg/EcZEHpA My Camera Gear: https://www.amazon.com/shop/tommybryson ✔ Help Us Reach 600,000 Subscribers: https://goo.gl/0wvm6w 😎All My Social Media😎 Link: https://linktr.ee/tommybryson --- Disclosure & Educational Disclaimer: Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.