- Is there one best way for everyone?
- How has budgeting changed and evolved for you as you’ve progressed through your life stages?
- When did you first start using a budgeting tool and was it out of necessity or desire or because you “thought you should”?
- Can you speak to bringing a partner in on your budgeting process?
- How budgeting practically look like for you and your wife? What roles do you both play in the process?
- Did you get your children involved in the budgeting process as a family and as their own individuals with their personal budgets?
- Has your background as a CPA or working within corporate finance benefited you in terms of budgeting at the personal finance level?
Methods of Budgeting
1. 50/30/20 Budget
Break down your expenses into three categories: needs, wants, and savings – 50 percent of your take-home pay should go towards needs, 30 percent should be devoted to wants, and 20 percent should get put into savings) – the balance.com | Paula Pant
2. Predictable vs. Unpredictable – Shannon Lee Simmons
3. Mandatory vs. Discretionary – the method Trevor uses
App vs. Spreadsheet
Setting up Your Budgeting Tool – what does it actually look like?
- Expense tracking vs. Budgeting
- Describe the layers and categorization rationale
- How do you build in or account for savings?
- How to maintain the diligence or self-discipline to maintain your budget (i.e. day-to-day expense tracking) and what does your process look like?
**Moving from expense tracking to budgeting
- When to move from expense tracking to budgeting
- How to actually set realistic budgeting figures
- How to stick with your budgeting figures or when to make adjustments
- How do you go about setting that goal for savings and how do you stay motivated to keep that momentum going?
- How to use your budget as a tool (i.e. ramp up your savings or repay debt versus simply using it to maintain a balanced budget where you ensure you are spending less then you earn)
Do’s and Don’ts
- Do: Updating your budget close to when you spend the money for a cause and effect
- Do: Collaborate – it has to be a partnership in any relationship, not one person’s responsibility
- Do: realize that budget planning is not math its actions
- Don’t: Get too granular
- Don’t: Think you get a pass – no amount of wealth/lack of wealth determines if you do or don’t need a budget
- Don’t: Think budgeting is temporary