Brad Nelson (Host)
00:00
So are you tired of feeling lost when it comes to your money? Budgeting doesn't have to be a headache. Today, we're going to make it simple, breaking down the basics so you can finally take control of your cash flow and start building the future you deserve—without all the overwhelm. Now, whether you've tried budgeting before and it didn't work, or you've been avoiding it because it seems complicated, don't worry. By the end of this episode, guys, you'll have a clear, beginner-friendly path to setting up a budget that works for you, and we'll be sharing some key tips to make the whole process easier and more effective. Stay tuned.
Announcer (Announcement)
00:38
You're listening to the Debt-Free Dad Podcast with Brad Nelson. Brad and his co-hosts experienced the anxiety of living paycheck to paycheck before learning the fundamentals of financial success. They are now on a mission to empower regular people to pay off their debt for good and enjoy happier, less stressful lives. Keep listening for inspirational interviews, tips, tricks, and practical advice to gain financial freedom.
Brad Nelson (Host)
01:13
Hey, guys, welcome to today's show. I am Brad Nelson, founder of Debt-Free Dad. I paid off about $45,000 in debt and have been debt-free for more than 11 years, outside of my mortgage. I've also been fortunate to help thousands of other people save and pay off tens of millions of dollars with the work we do here at Debt-Free Dad.
Amber Taylor (Co-host)
01:24
And I'm Amber Taylor, and we saved and paid off over $54,000 in just 20 months, and we've been living debt-free outside of our mortgage since 2018.
Chris Hawkins (Co-host)
01:33
And my name is Chris Hawkins. My wife and I, from 2005 to 2008, paid off just under $100,000 worth of debt and have been debt-free, except for our mortgage, ever since.
Ryan Nelson (Co-host)
01:44
I'm Ryan Nelson. My wife and I paid off $160,000 in debt while raising three kids.
Brad Nelson (Host)
01:51
Now, after listening to this episode, you guys, if you want to take this a step further and you'd like to get better results with your finances in as little as 30 to 60 days, we'll be sharing some details about how you can get started with that later on in today's show. So, today we're talking about the big bad B word: the budget. Every time I think about that word, for some reason, I always think of the Jaws music, right? Like, you know you have to take control of your finances, and the shark is coming—it's going to get you—and that shark is the budget for a lot of people. For a lot of households, it can almost feel like a swear word or a cuss word. Any thoughts for you guys on how budgeting felt when you first started?
Amber Taylor (Co-host)
02:40
I'm the oddball, I like spreadsheets.
Brad Nelson (Host)
02:43
The nerd of the group!
Amber Taylor (Co-host)
02:44
Yes, I'm the oddball with spreadsheets—the nerd of the group. It gives me control, and I love that control.
Chris Hawkins (Co-host)
02:50
For me, pen and paper was the best way to get started. I have since switched over to spreadsheets, but once you're completely out of debt, your budget can simplify. Writing it down physically helped me a lot in the beginning.
Ryan Nelson (Co-host)
03:12
Yeah, I hated it when we started.
Brad Nelson (Host)
03:16
I didn’t hate doing it as much as I hated following it.
Ryan Nelson (Co-host)
03:19
Yeah, that’s probably more accurate. Especially at the start, it's hard to follow because you're used to living in the moment. Once we stuck to it, it got easier, but that beginning stage—it’s hard. I’m not going to say it’s easy.
Amber Taylor (Co-host)
03:50
I think the hardest part for us was getting on the same page. I was super strict, like no, no, no—you were the hammer with it, huh?
Brad Nelson (Host)
04:05
Oh yeah, so was I.
Ryan Nelson (Co-host)
04:08
For us, one of the biggest things that helped us when starting a budget was using cash stuffing for things like clothes and car repairs. We had a windfall from a tax return, and instead of paying off debt, we funded those categories months ahead. It set the stage for us to avoid that feeling of constantly spending what we’d just saved. Once we did that, we didn’t run out.
Chris Hawkins (Co-host)
05:24
Envelopes are probably the best-kept secret for getting out of debt and staying on a budget. We still use them from time to time when we need to rein things in. The only bad budget is the one you don’t do. Whether it’s spreadsheets or pen and paper, there's no wrong way to do it, as long as you’re doing it.
Brad Nelson (Host)
06:12
I want to piggyback on what you just said, Chris: it’s the one you don’t do. According to Gallup, 32% of households have a working budget. That means 68% don’t. In fact, in a recent study, 58% of people admitted they don’t keep a detailed budget, and these are the same people reporting financial stress wreaking havoc in their lives. A budget is the cornerstone to reaching your financial goals.
Ryan Nelson (Co-host)
07:37
I saw a post recently that said if you spend 18 minutes a day on anything, over a year, that’s 100 hours. You’ll be better than 95% of people at it. It doesn’t have to take hours—just 15 minutes a day on your finances can radically change your financial life.
Brad Nelson (Host)
08:23
So, let’s talk about a few tips to get started. First, track your expenses. Before you sit down to write a budget, you need to understand where your money is going. Go back and print out the last three to six months of your statements—bank statements, credit card statements, even digital wallets like PayPal or Venmo. Figure out your spending on gas, groceries, medications, kids’ activities, everything. Otherwise, you’ll create an unrealistic budget.
Amber Taylor (Co-host)
09:29
We went back and looked at our expenses, and it was like getting a pay raise. We realized we were spending so much money in certain areas that we could dial down. And I know some people think they’re living paycheck to paycheck, but often, they just need to make some adjustments.
Ryan Nelson (Co-host)
10:40
Don’t just print out a few statements. Really dig into where your money is going. Most people will be shocked, and very few will say they knew exactly where all their money was going.
Chris Hawkins (Co-host)
11:17
It’s often death by a thousand cuts. Small expenses add up without realizing it. Doing a budget makes you aware of those.
Brad Nelson (Host)
12:09
When you start budgeting, things will go wrong within the first few days—something won’t work, and that’s normal. It’s going to take a few months to get into the groove, but stick with it.
Chris Hawkins (Co-host)
12:35
I agree. Writing down your expenses helps you become more aware. I recommend using sticky notes to categorize your expenses—it helps to see everything laid out visually.
Brad Nelson (Host)
13:49
One last point: when prioritizing, we say "Protect this House." Prioritize essentials like rent, mortgage, utilities, food, and transportation before focusing on things like credit cards. Protect your essentials first, because if you don’t, you’ll be in a dangerous place.
Chris Hawkins (Co-host)
15:21
You're right. If you’ve got a roof over your head, food in your stomach, the lights on, and a way to get to work, you can live to fight another day. It makes life a lot more manageable.
Ryan Nelson (Co-host)
15:48
When you're thinking about priorities, list them out. Food—just groceries, not dining out—shelter, utilities, transportation, and basic clothing. For transportation, especially if you rely on your car for work, prioritize making that car payment over a credit card bill, because that car is your paycheck.
Brad Nelson (Host)
16:53
Exactly. And don’t forget about things like prescriptions. You’ve got to cover your essentials first. Also, understanding your expenses gives you a chance to decide what to keep and what to cut. That sense of control will reduce a lot of the financial stress and anxiety people feel because now you’ll know exactly where your money is going.
Chris Hawkins (Co-host)
17:54
It goes back to something Amber said: most people think they don’t have any extra money, but once you track your spending, you might be surprised. Maybe you find you’re spending $800 a month eating out. Suddenly, there’s some extra money to play with.
Brad Nelson (Host)
18:34
And I think it's important to talk about the role of the emergency fund. It’s your budget’s best friend. There are going to be things that come up that aren’t planned for, especially in the first few months of budgeting. Having that emergency fund means you don’t have to turn to credit cards when those things happen.
Amber Taylor (Co-host)
19:20
Yep, and I had to use it right away! My dog ate something he shouldn’t have, and we were at the vet in the first month of budgeting. Had I not had that emergency fund, I probably would’ve thrown in the towel.
Chris Hawkins (Co-host)
19:38
At that moment, it probably felt like the emergency fund was pointless, but it really saved you from derailing your budget.
Amber Taylor (Co-host)
19:43
Exactly. At the time, I was like, “What’s $1,000 going to do?” But I would’ve quit without it. I’m so grateful we had it.
Brad Nelson (Host)
20:01
So, the other big piece to being successful with budgeting is consistency. This is where people struggle the most. They do great for the first few months, but then they stop, and soon they’re back to not having a budget at all. We’ve talked about this on past episodes—consistency is key.
Chris Hawkins (Co-host)
20:43
Staying consistent is tough, especially when things go wrong two days into your budget. But you’ve got to fight through it, because it’s only through consistency that things start to click.
Amber Taylor (Co-host)
21:24
Yeah, it’s not going to work unless you work it. You can’t just write your budget down and throw it in a drawer. You’ve got to check in on it regularly.
Brad Nelson (Host)
21:33
That’s why we suggest the “Roots 15.” Spend 15 minutes each day reviewing your budget. It keeps your eye on the prize and helps block out all the distractions trying to get you to spend money.
Chris Hawkins (Co-host)
22:10
One thing to keep in mind: a specific budgeting tool—whether it’s an app, spreadsheet, or form—isn’t going to save you. You are the magic in your budget. I recommend starting with a written budget, though. Writing it down connects you to the process more than just plugging numbers into an app.
Amber Taylor (Co-host)
22:34
We did both when we started—writing it down and using a spreadsheet. It made it more tangible for us, especially at the beginning.
Chris Hawkins (Co-host)
23:00
I had a couple I was coaching, and the husband had a budget with over 200 lines in it. It was way too complicated. My advice was to simplify it—put all clothing into one line instead of separating it for each family member. The simpler it is, the easier it is to stick with.
Ryan Nelson (Co-host)
24:23
When you’re starting out, you’re rewiring your brain on how you spend and treat money, which is why it’s hard. We’re used to living in the moment—seeing something and buying it right away without thinking. Budgeting forces you to plan ahead, and that can be a tough adjustment at first.
Amber Taylor (Co-host)
26:32
My biggest tip is not to be too strict with yourself. At first, I was super strict, but my husband wanted to keep some fun in the budget, and I realized we needed that balance to stick with it long term.
Brad Nelson (Host)
27:09
Your budget shouldn’t feel like a punishment. Just understand that budgeting isn’t about being cheap; it’s about having a plan. If you have earned income and expenses, you need a budget—no matter your income level. Speaking of budgets, you can get a free copy of our budget form by visiting DebtFreeDad.com and watching a quick video that will help you get better results with your finances in 30 to 60 days. We’ll link it in the show notes.
Chris Hawkins (Co-host)
28:04
Let's talk about all the good things, all the bad things that may be... Let’s talk about debt! Tune into Debt-Free Dad.
Amber Taylor (Co-host)
28:28
Tune into Debt-Free Dad, and that means it’s time for the celebrations of the show. First, we have Emma, who set up her emergency fund. She’s 10 days into September and has 80 pounds in it—not loads, but she’s assigned wages to go directly into it.
Brad Nelson (Host)
28:42
Awesome job, Emma! Congratulations. Next, we have Hope. She got a promotion and a raise this week after budgeting for almost a year. She knows exactly where that extra income will be going. Hope, your debt will be paid off in six months—congratulations!
Chris Hawkins (Co-host)
29:01
And Linda started her Roots journey again after a rough couple of months. She’s taking it slower this time, recognizing that baby steps are better than jumping all in at once.
Brad Nelson (Host)
29:16
Awesome, Linda!
Ryan Nelson (Co-host)
29:18
And Claudian is doing her Roots 15 every day, paid most of her bills, and her budget is done for September.
Brad Nelson (Host)
29:24
Great job, everyone! Congratulations to all of you taking a stand for your financial life and wanting better. We know getting out of debt isn’t easy, but with our help and your hard work, we promise this will be some of the best work you’ll ever do. Thanks for joining us on today’s show, and we’ll see you on the next episode.
Announcer (Announcement)
29:51
Thanks for listening to the Debt-Free Dad podcast. Connect with us on Facebook, TikTok, YouTube, and Instagram—just search Debt-Free Dad. If you found value in today's episode, please leave us a rating and review. For resources, show notes, and links mentioned in today’s show, visit DebtFreeDad.com. Catch you next week!
