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Welcome to The Financial Foundation, hosted by friend of TFD, attorney, and all-around financial mastermind Cindy Zuniga-Sanchez from Zero-Based Budget! In today’s video, Cindy will be talking about the reverse budget, a foolproof tactic for those of us who are too lazy or busy to think too hard about how to create a budget.
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Without even knowing it, this is how I deal with my money personally! I have a separate checking account that I’ve put in place that doesn’t have a debit card – only checks.
I think this might work for me since I’m not good at tracking expenses!
this video is a waste of time. save yours .
this reverse budget is what the rest of us call " a budget"- see dave ramsey
This is how I manage my money. I love the peace of mind that it gives me.
Two checking accounts? Not for me. My direct deposit into my checking acct pays my credit card that I pay my bills with. I get reward points and my credit score goes up cuz I pay the whole balance off. I only apply for 0% interest cards with 15 months to pay off. I have a Roth IRA automatically direct deposit from my paycheck. You should not have money in your checking acct after you paid your bills. Never use a debt card to pay for bills either.
Can you do one from someone who only makes 2000 a month?
I love you girl
The book The Richest Man In Babylon costs $9.95 and takes 3 hours to read.
It teaches the principal of “Paying Yourself First” by investing THE FIRST 10%
of every paycheck.
I read RMIB at 24. By 31 I was investing 35% and living on the balance.
I never inherited any money and never borrowed money from a relative
or for a depreciating non-business asset.
At 46, I retired comfortably and began living on 40% investment income.
At 58, I divorced and gave away HALF. 😳
You're never going to budget your self to wealth. You need to make more income.
i hope this reach to more ppl esp in usa
I have a question….how does this work on a weekly pay and having irregular income? My husband gets paid weekly and his checks arent always the same.
i dont think she realizes that most ppl are in the red every month, puttinf things om cc's monthly. What 500 for vacation? If this kind of infant advice is all it takes to create a "llc ". I'm doing one too. Step 1) don't realize everyone is in the red. Step 2) save for vacation and not pay high interest debt🤣🤣🤣🤣🤣, im done.
I’m too ambitious all the time lol
I’ve been doing something similar to a reverse budget but rather than having two checking accounts, I use a credit card for discretionary spending and pay it off each month.
I didn't realize I was doing this kind of budgeting already. It's been working right for me. I just don't have that second checking account. Good video.
haha Cool to hear I do actually have a 'budget' since I've been doing this for years
Just found this video
I realised that I have been been doing this reverse budgeting for years without putting a name to it
One of the reasons it works for me us that my husband and I have no debt except our mortgage
We keep our money seperate and pay all joint bills/costs from our joint account
I have been watching a few video's where people put their money into wallets. I appreciate this works for people with large debts and/or unable to control their spending but these people seem to spend a lot of time doing pretty books/pages while only saving very little at the end if the month
Low income it wont work
The more I watch financial education videos, the more I realize I need to thank my mom. She learned by experience and passed it on to me and my brother, and while she didn't have the tecnical terms, the actual strategies were spot on.
also, a con could be having the minimum to open/maintain accounts,transferring fees from different banks(for example i paid $40 out of the savings i needed transferred from an out of state bank to my hometown bank)
As soon as an unexpected car repair comes along this person would be toast. Tracking all expenses is essential to maintain a budget
Thanks, I like the positive first approach
Oh my God! I think that I do a reverse budget … a lot of people say that I crazy for every pay day I save and then pay de bills. And the way that I budget is priorizaing tbe savings and investments.
And then if you address all the circadian and metabolic stuff and it doesn't work, the next stop is to see if you're sick.
The best channel ever. Love u Chelsea!!!! U need to teach in universities as well.
I did a variation of this budget when I had cheaper housing. I decided early on how much I was putting into emergency & student loans, then set up how much was for other categories aside from housing since it was the biggest. I also set up multiple accounts for different spending categories (i.e. housing costs) so that money isn't sitting in my checking.
Speaking of housing, on the write-in question, I would definitely stick with the cheaper housing as long as it fits all other needs (location, safety, etc.). It's generally harder to downsize than upsize, plus bigger space requires more resources other than just higher rent. There's also no guarantee you'd be able to get that deal again if you change your mind, so I'd keep pocketing the savings for as long as you can.
A family of five in a one bedroom apartment would never be allowed today. In those days poor or 'frugal' people could get away with it, but landlords will not allow a lot of people crammed into small apartments anymore. No sleeping on the sofa or pallets on the floor. Those days are long gone. In those days, people likely knew their landlord personally and were seen as real human beings with needs and good qualities besides being able to pay the rent. Now, apartments are managed by multinational companies with AI tools, high turnover, and 33 page leases full of stultifying rules and stipulations. And they charge extra for every little thing. They even create charges for stuff that makes zero sense, like "Utilities Reimbursement FEE" when you are fully responsible for paying for your own utilities, they don't pay a dime of it.
I loved this method thanks
“ We would stick to necessities… food, shelter, 215, 000 of education and clothes’ 😅❤🎉
Stopped watching when they introduced "anna" whos monthly income is $4000. I felt like i was going to puke because thats a bit over 2x my monthly income. Simply not relatable.
I do not budget monthly. I get paid weekly, so my budgeting is on a weekly scale. Any monthly expenses are divided by 4.
I do not like automatic transfers, although I do have a couple set up (T-Mobile charges $5 for not having one set up, for example). My preference is to set up automatic bill-pay from my bank's website. This gives me immediate control, and the ability to adjust quickly. The majority of automatic transfers I do have, are drawn from a secondary account, and are funded weekly via internal transfers; once again, I'm using my bank's website for this purpose.
Yes, I automate nearly everything, one way or another.
I'm really glad to have come across this video, because I slowly cobbled together a system for myself which works pretty close to this and had always been worried that I wasn't "budgeting" correctly. However, the idea of sectioning off bits of money and spending freely from what was left felt much more natural to me, and I have been able to reach my financial goals consistently each year. It's really validating to know I was doing something right and not messing up. Thank you.
Curious how credit cards fit into this? I usually use my credit card for a blend of bills/discretionary spending ex: car payment, groceries, gas, entertainment, pet food…etc. I pay that off with one specific checking account, & have a separate savings account that I generally don’t use haha any suggestions or words of advice?
Love this! Thank you for the great strategies. ❤