This budgeting method I talk about in today’s video really changed the way I view my own finances. It’s called the P&L Method, or running your life like you would a business. Every month, I have my own personal P&L sheet, and I’ve also created one for you guys so you can budget on your own today too.
The P&L Method Template:
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Timestamps:
0:00 – Start Here
0:36 – Step 1: Being Aware
1:42 – Tracking Expenses Challenge
3:24 – Embarrassment & Finances
4:55 – 4 Things To Get Better
6:17 – THE BUDGETING METHOD
8:51 – Zero-Based Alternative
9:54 – How to Allocate Money
13:07 – Where People Get Stuck
PS: I am not a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!
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I find it efficient to download the csv file from my bank & credit card and import to my spreadsheet. Since I’m a nerd, I have it automatically feeding pivot charts, so I can see everything in a dashboard with very few clicks. There’s obviously more sophisticated software available but this is a cheap, accessible approach.
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession– it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.
You should include depreciation expense if you run yourself like a business
This is a great video and great method. I do zero based and the one thing I'd add is, just because every dollar is assigned, doesn't mean every dollar is spent. So just like in your example you had $782 left over to decide what to do with, in zero-based, you can also decide what to do with that $782. You can assign it to 'save for next month (rollover)', 'save for concert tickets', whatever.
Do you use any online account monitoring programs, for example I used to be an avid Intuit Mint user, but now they are doing away with the platform and moving some features to Credit Karma. Do you manually track your finances in Excel exclusively?
Disassociate your spending from your identity – I read that as not needing to prove myself by keeping up with the Joneses. 😉
Good stuff as always buddy. Good luck finding that GF
We are soulmates xD. Love tracking stuff too at the end of the month hahahah
I have been doing this for over a decade after trying various methods for 5 years prior. Great method to recommend to others.
The thing I found most impactful with this method is the mindset of running personal finances like a business.
The goal of a business is to make as much money as soon as possible.
The goal of my personal "business" is to grow my wealth as quickly as possible.
Thanks for this video
you are the best , thanks for sharing .
Thank you! Are you offering accountability support for that 3 month challenge? It's hard for me to track EVERY expense bc I work in 2 currencies, but mostly, because I use cash. Please help!
As an Entrepreneur, the moment I starts operating my personal finances like a profitable business, my finances jumped up! This is a transformational idea!
Amazing tips.
PS4?? 7:29 Did you shoot this video in 2013?
Hey buddy word of advice I wouldn’t be advertising you’re looking for someone on YouTube. You’re a good looking dude and are successful on YouTube you shouldn’t have a hard time finding someone organically. Advertising here might attract the gold diggers and be counterproductive to what your doing, keep up the content 🤘🏼
Id be salivating at the end of the month too, if youtube was making me more than 20k a month. Lol
❤
Hmmm if you winning the financial game you shouldn't feel the need to check your bank account that often
The way he confidently says check your bank account once a week to a month is crazy I have to check that shit before every purchase cause I’m broooooooke
I just started with my budgeting i use the zero-based method i have my roth contributions and emergency fund on automatic and whats left its for bills and essentials. Just by doing that and and checking it often aswel as my bank statements its changing the way i see my finances, it feels good when i see i have some left over just because its assigned it doesn’t mean i have to spend it. I do like how you put things in that way of looking it like a company. After every month i will turn my complete budget into a P & L and have a binder for it to check it often. Thanks Humphrey 🙏
I’ve never heard anyone else say it, but I’m glad I’m not the only one who specifically looks forward to the last day of the month! It’s so fun to have a thoughtful financial wrap up moment before closing the books and starting on the next month’s finances. It’s borderline therapeutic for my Type-A self.