The 5 Week Personal Finance Transformation

Note: These are rough 'Show Notes'. For official reading material for the week, please see the Complimentary Reading Material.

Creating Your Budget

What is a budget?

Why you need one...

Different budgeting for different people

The original worksheet & spending ledger for this course

I recommend doing my updated digital version of your budget and an envelope system for spending, but if for some reason, you are more inclined to using paper budget and ledger, you can find the original worksheets and reading material (from 5 years ago) below. For the New! solutions, visit the official Reading Material for links and instructions.

Get The 5WPT Original Worksheet Here (or in the assignment section):
Budget: https://drive.google.com/file/d/1nfpGcigzONwkDjI_F7offXcuyzVzW0iT/view?usp=sharing

Spending Ledger: https://drive.google.com/file/d/1MCFAvRJ4yOanMr9rAjF6hGAGfD3gns86/view?usp=sharing

Complimentary Reading: https://docs.google.com/document/d/1F1NWCEYFwYFCV8x1NZ3i2V_Hn_csDR3eBH_dAEK3WeA/edit?usp=sharing

The new spreadsheet tour and concept

Regardless of which you choose,

What you might need to create your budget:

1. Copies of bills regularly sent to your house

2. Pay stubs or 'proof of income'

3. Bank statement or login for digital statement

How to clone the budget template and start customizing yours.

1. Clone in Google or Download

2. Skim the spreadsheet and make quick changes, then start inputting your numbers

3. Add and subtract according to your life, such as adding your debt information and minimum payments. I looked at other people's templates and made this one for myself, which I will be modifying each month as I go.

4. Thoughtfully 'Budget' your 'Flexible Spending Categories'

5. Input your 'Money Saving' Tips if you have any. An example of one for me was applying for the Sam's Club Mastercard. I also put my energy bill on a budget and looked up ways to save money on air conditioning during the Summer like getting a quality fan for my living room and keeping the thermostat a little higher.

Next week, we're going to add tracking. It's how you're going to track your spending in different categories, so that you can stay close to the amount you budgeted and make adjustments if you don't.

How To Make Your Budget Work For You

Note: These are rough 'Show Notes'. For official reading material for the week, please see the Complimentary Reading Material.

Tracking

Ok, we're ready to turn our budget into action and we're going to do this by tracking our expenses to see if we are able to stay within the budget and make adjustments accordingly.

Originally, I provided a 'Spending Ledger' which is just like a check register, if you remember those.

My new suggestion for tracking, the envelope system, isn't much different. But I think you'll like it better because...

Spending Ledger

You have to write down every expense on the spot, when the money is spent

The categories can be a bit of a mess

Doesn't organize cash or receipts at all

Can get lost

Envelope System

You can just tuck receipts behind the category and input later

Categories are organized

Use receipts and/or cash in your envelopes

Can look cute/be motivating

If you still want to use the spending ledger, you can print it here (or just use a piece of loose leaf paper of your own): https://drive.google.com/file/d/1MCFAvRJ4yOanMr9rAjF6hGAGfD3gns86/view?usp=sharing

If you want to upgrade to the envelope system, you can purchase one from Daveramsey.com (https://www.ramseysolutions.com/store/budgeting-tools?snid=tools-and-apps.tools-and-apps.envelope-systems-and-wallets) or create your own. I'll show you both.

Dave Ramsey – Dave Ramsey Solutions or Financial Peace University may be brand names you've heard of before. I am actually a Financial Peace University coordinator and I find value in knowing the traditional financial literacy solutions. Some people find Dave Ramsey is too rigid and safe when it comes to money management, but I think it's a great place to start- and often, his money management style is where many people will stay because it is comfortable for them. This is his envelope system. I ordered... and I'll be using it for the first time this month!

I ordered my envelopes, but didn't get them in time, so I created my own envelope system pretty easily with just a plain envelope and index cards! I would definitely do this again and you can make it much prettier than I have done here.

Additional Accountability

It's not only more effective, but more fun when you're growing financially with other people. If you have a partner, make it a team effort. You can also do it as a family or with one friend (or many friends!).

“Balance Your Books”

After your month has ended, you will want to once again return to your spreadsheet or budget and enter your 'actual spending' to see if you stayed within your budget. With this information input, you'll be able to make adjustments to categories and you'll know if you are generally in the red or black. Sometimes this can motivate you to tighten up even more to save money, or find ways to bring in more income. Let's look at my spreadsheet and how I move from one month to the next...

Tracking Your Spending

Note: There are no 'Show Notes' for this video. For official reading material for the week, please see the Complimentary Reading Material.

Savings & Debt Management

One Month Evaluation

Note: There are no 'Show Notes' for this video. For official reading material for the week, please see the Complimentary Reading Material.

Grow Beyond!