Different Ways to Budget | Cash Course

Learn budgeting basics as we dive deep into six different methods for managing your finances, including the 50-30-20 rule, how to decide which budgeting method is right for you, and tips for reaching your financial goals.

📝 Follow along with our Cash Course: Financial Literacy Lesson Plans & Worksheets book, available now on Amazon!

[aceofknaves]

Budgeting is really simple. Live below your financial means. For example, if you make 50K per year, live like you make 30K per year. If you make $15 dollars per hour, live like you make $10 dollars per hour. What I have shared is a really simple concept that doesn't require this video that PragerU has provided. The true issue when it comes to budgeting is that people are not willing to live below their financial means. Whenever I mention live below your financial means and provide examples to support my stance, people always say that this is impossible to do and then come up with as many lame excuses as they can think of, which is why most people are broke. Live below your financial means, and you will be just fine.

[sandrahartman]

When I was 16 and started working. I used the envelope system to help me start budgeting. I think it really helps kids learn how they should budget.

[jakey]

What if the cost of living goes up? That raise means nothing now.

[mattwilliams]

Great video to introduce these important concepts.

[alliesmom]

I have some disagreement with this method. 50/30/20 should be changed to make it 20% wants and 30% savings. Spending more than a quarter of your earnings on stuff you want but don’t need is a bad idea. In fact 20 % unnecessary spending is too much, IMO. And people need a clear understanding of what constitutes “need”. Starbucks coffee three times a week is NOT a “need”. Eating lunch lunch out every day is not a “need”. Needs are housing, food, utilities, insurance, gas to get to work, healthcare costs.

[arikwolf]

This video is a very simplified version of Dave Ramsey's _Financial Peace_ program. Which I have been using for a decade now. I knew my budget works when I earned enough to actually have a tax bill and I could write the check without sweating it. Now, I do not eat junk food like ramen and have steak for dinner. I saved enough to buy a car with cash and now have enough saved to buy another one if I choose to do so. I also make donations to causes I find worthy. And more importantly, I do not have debt. When I get paid, I fist set aside (allocate) money for my known bills, the savings for unknown bills (doctor, emergency repairs, etc.) and what I have left I can go shopping with. You will have to make some tough decisions of want you really need vs. want you think you need at first, but budgeting is easy once you in the habit of making and use one.

[PhilWP]

You Need A Budget; YNAB. It's not just expense tracking; it's planning for your future. I'm not big on gimmicky budgets, but everyone needs to be fiscally responsible.

[selfcontrol]

These are great ideas 💡. But remember kids as G.I. Joe says "knowing is half the battle"

[mileslong]

Eating ramen for a couple of months? I lived on ramen for years when I was in college. In fact, I became quite the connoisseur of ramen.
But, at least I never took out a student loan!
Great material, PragerU!

[billiecarbone]

Too bad our representatives don’t follow a budget

[steveinskeep]

...her budgeting means if there are still blank cheques in the chequebook that must mean there is still money in the account being drafted upon. Nevermind she uses him as her preferred payment method since he backfills the account with his hard earned money while she holds the family hostage making him keep her happy on her spending sprees.

[pdog]

Holy smokes - if you didn't have to do the ridiculous little skits this would be a lot more watchable.

[beidorion]

i love pragerU.

so please stop the cringe openings

[Fiery]

Love ya guys, but this still doesn’t address the behavior of actually sticking to your budget and monitoring your spending.

[thepavilion]

Haha, paying in cash. In this century? That is not even an option for rent/utilities.