00:00That's a good tool to use to keep you in check is once my balance gets here
00:06Well, I freak out if it's if there's no commas in my bank account
00:09I am officially having a meltdown, something is wrong
00:14I need at least one comma in that bank account or we have a problem
00:20I think that when it comes to budgeting, I know myself
00:28I know that you know groceries and kids is an area that I'm kind of like
00:33All over the place with and so what I do is I build a buffer into my budget. So I know that you know
00:40I'm probably gonna go over in this area
00:42And so I build it an extra buffer there so that if I do go over
00:45I'm still under budget or close to budget and it's kind of my way of fooling myself
00:50Into you know staying on track really emergency savings is something that comes up often people don't know
00:56Most people don't have an emergency savings account. So what I I recommend to
01:02So what I what I stress to clients and friends is three to six months of your monthly expenses
01:17Or ten to fifteen percent
01:21You know of your income you want to set aside first for savings for an emergency fund
01:27Now I recognize
01:32How does one do that?
01:34So I recognize that that could be challenging for people
01:37So it really it starts all the way back to what we were talking about building a budget in order to
01:44Even think about trying to plan for an emergency savings. You have to really know what you have
01:50What's your income and what your expenses and then what's left your disposable income?
01:55And then from that disposable income, that's what we use to start building the savings for me personally
02:01I when I have too many things I'm saving for I get overwhelmed
02:05So I try not to have more than three to five of them of like key like you know
02:11Things I'm saving for and I prioritize them what's most important. So let's say I have I don't know a thousand dollars to save right
02:17I'll prioritize my three top things into percentages. So
02:20Priority one is gonna get 50% and then priority two and three will get 25% each of that money that way once one is done
02:28I can close it out and then move on to the next one and add on another another goal and Ty you do it
02:34You do it. I do you do how you travel every Christmas. Oh, yes, I do
02:41And so that's something that is very important to you
02:45And so you make sure no matter what that you're putting that money away
02:50So when you go on your big trip during the holidays, you know, you can enjoy yourself
02:55So I just thought of something that I did with one of my best friends and we did it
02:58I think two or three years in a row
03:00So I was in the space where you know all of us have it where we have things in our closet that have tags on them
03:06We're not wearing them like wait a minute
03:08Why am I buying all these things that I'm not really using so we challenge ourselves and she's very much like you
03:12She's a planner and we're like we're gonna track how much we spend on buying
03:17clothing and accessories and
03:20We can't buy more than 30 things
03:22Um for this year for the year. Yeah, so I failed both times I came in around 40 something
03:30But what it did you have 40 something things, but what it did was yes
03:35And the only reason I was able to do that was because I knew I had that challenge going on with my friend
03:39It was almost like a competition, but what it made me realize was that um
03:44There were some things that I was buying that I knew I was never gonna wear so I would return them
03:47Yeah, it also showed me how much I was spending on clothing in a year and I was like wait a minute
03:53You bought this for this much money
03:55It was just so insightful and so ever since doing that exercise for those two or three years
04:00I'm very particular about how I spend my money on my clothes or shoes or like because those things like this just a random spending
04:07It actually just does add up
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