Overdrafts and Money Fights: The Simple Budget Fix (Bills vs. Spending) | 455

0:00Today, we're bringing you real life stories and lessons from our private coaching sessions. If our clients are dealing with it, chances are you are too. So we're breaking it down to help you avoid the same mistakes, feel less alone, and walk away with some quick wins for your budget. Do you make good money but have nothing to show for it? Are you tired of living paycheck to paycheck? Do you have big dreams for your financial future? Do you want to get debt-free but you don't want to live on beans and rice? Or you don't want to give up those pumpkin spice lattes? Hey, it's okay if you don't already know how to budget or if you're using credit cards to get through the month.

0:31Hey, it's okay if you want to seem like you have your finances all together, or you're not on the same page with your spouse when it comes to finances. We know what you're doing probably isn't working, but guess what? You're in the right place. We're Shana and Vanessa. We're best friends, business partners, and master financial coaches trained by Dave Ramsey. We've been in business since 2019, helping hundreds of amazing people like you create budgets, get out of debt, stop living paycheck to paycheck, and know exactly what to do with their money. In this podcast, we'll share with you everything we know, plus everything we're working on with our clients so that you have the best chance at reaching your financial goals.

1:07We want to help you take the guesswork out of your budget, improve your marriages, and even bring your kids in on the conversation. We can help you no matter where you're at, whether you're the single mom who's never had$500 in her savings account or the millionaire who's paid off four real estate mortgages. And we're not going to shy away from the tough love. We'll tell you what you need to here and encourage you at the same time. This is the Financial Coaching for Women podcast. I have this sweet client and she's only the one that ever is able to go to come on the calls. She's a nurse. So she schedules like cause she's not busy.

1:40Yeah. She's got, they have two little kids. He works, I think on a rig. I don't know. Like he's like far when he works and then she's in her. So she schedules around like her schedule and everything. So she schedules around our appointments. And so she's only the one that's ever shown up very sweet. And she loves, she honors her husband. Like she's always so good about wanting to make sure that he has what he needs in the budget and make sure that he is informed and keeps him in the loop of everything that's going on. And one of the things that we were talking about was having his separate spending account.

2:12And she was so excited about this because he would have his own money to be able to do whatever he wants judgment-free and she would have the same. And he didn't, he wouldn't care what she spent and vice versa. And also the biggest part of this is that it did not interfere with the bills. Like that I think was the biggest thing for her. Like the peace of mind, the clarity that she needed was to know that it wasn't going to mess up any of the automatic bills or groceries or gas or any of that. But it was really cute. So we were going through her bills and she said, so the Xbox Live monthly subscription, that's going to go in the bills account.

2:42And I said, yes, because it's a monthly reoccurring bill that has a due date and that is considered a bill. And And she's like, okay, but all of his extra charges that he like buys stuff, like Fortnite, you can buy suits or skins, or you can level up games. She's like, all of that stuff, that's going to come out of his spending account. And I said, yes, bingo. And she's like, this is amazing. So it made total sense to her, like how we were separating the, they were both Xbox and gaming charges, but one was a monthly subscription. and the other one was what he wanted to spend in the moment here and there as he was playing his game.

3:19And so I think it was really good for her and for him to understand the difference of what was considered spending money and what was considered a monthly bill. Yeah. And I just want to piggyback on that because I have seen, I agree with you. I think everybody's excited to have their own spending accounts. I think this is going to solve a lot of problems and it does. It really does. I have seen some people try to take on these things because they feel guilty or silly, like that it's a bill, right? Something like Xbox or maybe some other game or whatever, but we still want it to be in the bills.

3:51We still want you to look at all of that in one. The bills account is not only needs. It's going to have some of the fun stuff that you guys, but it's very important to see it all in whole and all at once, like saying, okay, yeah, we have all these utilities, here's all the subscriptions, like seeing it all together is really important. The other thing that could start to happen if we don't separate that and keep it out of the spending is you like start to put this burden on your spending money and you end up running out because now I'm paying for all of my subscriptions so that nobody else has to look at it or worry about it.

4:22Now you have$5 to spend every month and we're going to end up having a problem. Honestly, we know that. And just understanding, like, we all want to look at it. We all have goals. And I know you chose this one because you love how she's honoring him. And that we're going to do that together. No, it's not me versus you. It's not, you have this subscription. I have this one. It's like, we're living our best life within our budget. Like it's all fine. Nobody's upset or whatever. It's not a tip or that, but it is organized. That's all that we really want is organized and it's correct. And so, yeah, just that idea that we're not just only putting needs in the bills account.

4:54It's someone. I think that is a really good point because we have people come to us and what we hear and see online is fixed and variable and expenses and all of this. And no, It doesn't matter whether it's a need or want or fixed or variable. It matters if it's a bill or it's spending. Like literally the two different definitions that we have and what we say, we think it's the best type of definition. A lot of our listeners agree with us. Also, I think groceries technically is variable, but no, we're teaching you actually it's fixed. Like you can be on a rhythm with those and you don't have to feel like it's all over the place.

5:23But yes, I agree. Let's just be honest. A bill is anything with a due date. Put all the bills in the bills account. And if you do look at them and they do often say, oh, maybe we don't need 12 different TV streaming stations or subscriptions. Okay, let's cut that. That's fine, but we just need to first organize it and then we can make some decisions. All right, budget besties, it's time for some real talk. You don't need another budget. You need a budget system. Our simplified budget system is what you've been looking for. It's going to allow you to be bougie on a budget. You'll be able to easily set up a system that runs automatically and shows you exactly where your money is going.

6:00And it's going to give you permission to spend. Everybody loves that. Yeah. It's straightforward, pretty, and packed with walkthrough videos that break down the exact methods we use with our clients to get out of debt, set up a bills account, separate spending, build savings buckets, and end the paycheck to paycheck feel. If you're new to budgeting, this is the perfect way to jump in. And if you're already a budget nerd like us, You're about to meet your new obsession. This is the upgrade to your finances that you need right now. Yeah. So head on over to budgetbestdc.com forward slash budget and grab yours.

6:33Now back to today's show. So speaking of husbands, all the husbands won. All the husbands are winning today because I was actually having a session with my clients yesterday and we had set aside money for their transmission because they have a Tahoe and I'm very familiar. I've replaced two transmissions in two different Tahos. and he was really optimistic that they weren't going to need it. Oh, like at all? Because he's very handy and he's, no, I don't think we're going to need it. And I'm like, I think we're just going to keep that money there just in case. We'll just hold on to it in just a minute.

7:06Anyway, so they came to me and I said a lot of stuff had been going on with them. I said, just get it inspected. Then have somebody tell you for sure if you need it or not. And they finally did. And they came back and they said, okay, needs a new transmission. Or should we get a new used car? Okay. Those are the same. Yeah. The price tag on those are the same. Well, in their mind, okay, we're going to replace this transmission. What's next? Get it. Totally get it. It's the family vehicle, right? So the kids are traveling in it. It needs to be reliable, blah, blah, blah. And so they went and found a car that they could get used for 30 ,000 miles or$30 ,000 or to fix it.

7:41This is what the options they presented. He could fix it himself for 4 ,500, or it could pay to have a shop do it for 6 ,500. And how cool is it that he could do it himself? It is awesome. And we consulted my husband because he loves to talk about this stuff. And this particular engine, he's very confident in it. And so they're going to replace the transmission and still probably get 100 ,000 miles on it. And so her point, the wife was like, okay, so if we might need this$30 ,000 car someday, but if we can get through another year without having a car payment, without having added this much debt and get some of our other goal is done and then we have that and it's buying them time by fixing this right without having this huge price tag so that's what they decided to do and they already had the money in their vehicle account which was really cool they had enough for the transmission and so that was the only part that kind of came down and it was funny i was like okay yes he's it's fine it's just gonna break my back and that's fine i'm like okay compromise so her so i put in their action item i was like order the parts because all the money is in there order the parts to do the transmission for him.

8:44And then for her, it was schedule his chiropractor appointments and make sure he goes, make sure he goes. Your job is to make sure like we're going to honor him and all of his hard work by making sure he gets to the chiropractor for all the hard work he's going to do. I think that is, that's so good for them to see if we get this card,$30 ,000 that we're paying, we're starting payments, like that whole cycle, or we could hold off, do it ourself. And how much progress could they make in their budget or debt, if that's their goal or savings, if that's their goal. Like how much progress could they make in this next year before they will need to actually do that$30 ,000 car payment.

9:16So I think that's really good. And I love how you were able to help them with that. And you had a handy husband, just all worked all right. Yeah, that's what I was saying. Like all the husbands are winning. Yeah. It's a win for everybody. Helping each other out. Yeah. And I just think that the important thing to do or to think about is just buy yourself the time. Like it might feel like that easy answer is the best option, but they are going to buy themselves time. They're not going to have to have a car payment. And like business that they can probably make a lot of progress in that time. And I also appreciate that they're willing to do that, right?

9:45So like we have some clients that are like, absolutely not. Like I have a new client that I'm going to be dealing with, their mindset about leasing cars. That's our, that's going to be, that's going to be one of my next - I think we need to do a podcast on that because I've had a lot of clients lately that want to lease cars and they think that it's easier and it's less maintenance for them. And I think, Shannon, when you and I have looked at it before, it's like, that's how they make the most of their money, right? Dealerships is by leasing. I don't know. I'm going to research it. I know we need to look at it.

10:11And like you said, I would love to do a podcast on it just so you guys have a reference. But point being, give yourself the breathing room to make progress and try not to make some of these big decisions. Like you said, your client showed up with a house that they couldn't afford to. Don't sabotage. Self-sabotage is the real thing. And hey, again, if you have a question, come to a live call. If you're like, okay, that's great for them. They have a coach to talk to every two weeks. You could talk to us. And you can go budgetbesties.com forward slash live call and set up a call and we can answer any question, whether it's specific like that or just general generic.

10:40We'd love to help you. Yeah, it's a lot of fun. We get on the call with you and then it airs on the podcast and it's just a chance for you to get free coaching and for us to help you out. If you're tired of feeling like your finances are all over the place and you're ready for a simple set it and forget it way to budget, we have something special for you. Watch our automate your budget masterclass at budgetbesties.com forward slash automate. We'll show you step-by-step how to finally organize your money, how to set up your account and put your budget on autopilot. So your bills, saving, and spending run like clockwork.

11:10Imagine less stress, more savings, and the freedom to spend money without having to track every dollar or babysit your bank account. Go to budgetbesties.com forward slash automate to start today.