Episode: 305 - New Year, New You: Mastering Budgeting for Success
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It's a new year, and there's no better time to take charge of your finances with a budget. Many people think budgeting is restrictive or complicated, but it's actually a powerful tool that can simplify your financial life.
Why You Need a Budget
Lots of people want to save more and get out of debt, but that's tough to do without a plan. A budget is like a roadmap for your money, helping you understand where it's going and make sure it's being used wisely. Without one, it's easy to overspend and end up living paycheck to paycheck.
Busting Budgeting Myths
- Myth 1: Budgeting is boring. A budget doesn't mean you can't have fun! It actually gives you the freedom to spend on things you love while cutting back in other areas.
- Myth 2: Budgeting is too hard. It doesn't have to be! You can start with something as simple as a list of your income and expenses.
- Myth 3: Budgeting takes too much time. Once you get going, budgeting only takes a few minutes each week. That's a small price to pay for peace of mind.
No More Excuses!
Don't let these common excuses hold you back:
- "I don't make enough." A budget helps you make the most of any income.
- "I'll start later." The best time to start is right now!
- "I'm in too much debt." A budget is your first step to tackling debt.
The Perks of Budgeting
Budgeting can help you:
- Save more money
- Pay off debt faster
- Stress less about finances
- Achieve your financial goals
Join Our Free Workshop!
Want to learn more? Join our free Totally Awesome Budgeting Workshop on January 7th! We'll show you how to create a budget that works for you. Space is limited, so sign up today!
Let's make this your most financially successful year yet!
Resources Mentioned
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
To learn how to take the stress out of your finances so you can breathe again, follow this link: https://www.debtfreedad.com/lwp-masterclass-opt-in-page-podcast
Connect With Brad
Website- https://www.debtfreedad.com
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YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
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Transcript:
Brad Nelson:
Hey, so I am thrilled to be kicking off a new year with a new episode focused on one of the most powerful tools in personal finance budgeting. Now, before you roll your eyes or hit skip, hear me out. Budgeting isn't what most people think it is, and it's certainly not as hard as it's made out to be. In fact, it could be one resolution that you set this year that transforms your entire financial life. Hey guys, I'm Brad Nelson, founder of Debt-Free Dad. I paid off about $45,000 of debt. I've been debt-free now for more than 11 years, outside of my mortgage. I've also been fortunate enough to help thousands of other people save and pay off tens of millions of dollars with the work that we do here at Debt-Free Dad. Now let's start with why budgeting is so important Now.
Brad Nelson:
According to a recent study conducted by the CFP board, two of the top three New Year's resolutions for 2025 are financially focused 45% of Americans want to save more money and 32% they want to reduce debt. But here's the thing If you want to save more or pay off debt, a budget is the foundation for achieving those goals. Now, without a budget, your money lacks direction. It's like trying to navigate without a map, and a lot of us have tried to get to our destination without that Google app or that Maps app. Right, and let's face it, the stakes are high if you don't take control of your finances. Nearly 70% of Americans are living paycheck to paycheck right now. Half of debt-holding Americans are struggling to manage at least one type of debt in their life, whether it's credit cards, medical bills or student loans, and 38% of people cite too many expenses as the reason they can't achieve their financial goals. So a budget helps you take control of all of that. It's not just about tracking your money and locating every single cent right. It's about giving every single dollar a goal or a purpose, and when you have that purpose, the stress and the chaos that you're feeling right now it really starts to fade. You stop feeling like your money is controlling you and instead you're finally taking charge.
Brad Nelson:
Now let's tackle some of the common misconceptions about budgeting. Number one budgeting is too restrictive or it might feel like a whip or a punishment, and I hear this all the time and, honestly, I get it. You know when people think of budget or heck, even when I think back when I started budgeting, you know we imagine cutting everything that's fun out of our life, but that's not really true. A good budget actually gives you permission to spend on the things that you value most, while cutting back on the things that don't matter so much. It's about aligning your money with your priorities in the life that you want to live.
Brad Nelson:
Number two budgeting is just too complicated. Now here's the reality. Budgeting can be as simple as listing your income and your expenses on a piece of paper Really that simple. You don't need these fancy tools or the advanced spreadsheets or maybe even some of these apps that are out there Although some of these apps can make things easier. But the key is just getting started, so don't overcomplicate it.
Brad Nelson:
And number three is budgeting it just takes too much time. Now, this is a big one, but the truth is budgeting doesn't have to take hours and hours every single week. You can literally just spend 15 to 20 minutes per week. Once you've got things set up, that's less time than an episode of your favorite show. Think about it. What's 15 minutes of planning compared to hours of stress and worry you experience over your finances?
Brad Nelson:
Now, even with these misconceptions cleared up, people still have excuses, so let's go through a few. Number one is I don't make enough money to budget or to save and build an emergency fund, or to get out of debt. I'm just going to be fully transparent. Wrong Budgeting isn't about how much money you make. It's about managing what you have. In fact, the less money that you have, the more important budgeting becomes, because every single dollar needs to work harder for you.
Brad Nelson:
Number two is I'll start next month, waiting for that perfect time to show up. Here's a fact Procrastination. It's going to keep you stuck. If you waiting for that perfect time to show up. Here's a fact Procrastination. It's going to keep you stuck. If you're waiting for the perfect time to start budgeting, you'll wait forever. The best time to start is right now.
Brad Nelson:
Number three is I'm just too far into debt or there's no hope for me. What is the absolute point of any of this? Here's the point you can't fix the problem without a plan. Budgeting is the first step to gaining traction and getting out of the hole that you've built. You've dug yourself right. It may feel overwhelming at first, but taking that first step, it makes all the difference.
Brad Nelson:
Now let's talk about what's on the other side of budgeting. Once you start, what are the benefits of this? Well, number one you're actually going to have more money to put towards your savings, your emergency funds, reducing the need to rely on debt. You're going to feel a huge reduction in financial stress because you're going to know exactly where your money is going and what you're spending your money on, and you're actually going to be starting to make some good progress with your finances. That's going to feel good. You're also going to start making progress on your financial goals, whether it's paying off your debt, saving for a vacation or building for your retirement fund. And here's the best part when you're budgeting, you're not just improving your financial life, you're improving your overall quality of life. Less stress means better health, better sleep, stronger relationships and more focus on the things that truly matter in your life.
Brad Nelson:
So if you're ready to experience these benefits, I want to personally invite you to my free, totally awesome budgeting workshop coming up on January 7th. Yes, this is the live free workshop. This workshop is designed to help you get started with budgeting, even if you've never done it before or you're at a complete loss of where to start when it comes to taking control of your finances. We're going to cover things like the basics of creating a budget and a budget that actually works for you. We're going to talk about some strategies to help you save more money and pay off debt even faster, and we're going to teach you how to overcome the common challenges that keep most people stuck when doing their budget.
Brad Nelson:
So this is your chance, you guys. This is your chance, in a new year, to take control of your finances and finally break free from financial stress. Now to register, all you got to do is click on the link in the top of the show notes of this episode, and spots are going to be limited, so you're not going to want to miss this. Hey, I hope to see you at that workshop. Thanks for joining us on today's episode and we will see you, guys, on the next show.
