Where to Cut Your Budget During an Economic Downturn

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When building your budget, do you have a line designated for “economic downturn” or “high inflation?” Probably not. Many financial freaks like Carl and Mindy Jensen don’t prepare for economic anomalies like rampant inflation or double-digit stock market losses. And like most Americans, they’re finding it hard to not spend more money every month.

Carl and Mindy understand this, but can't seem to rein in their rebellious budget. This month was their most expensive month ever. And even though these expenses were planned, they nonetheless stung when reviewing them later. But even without these accounted expenses, Carl and Mindy have noticed the cost of goods going up while their stock portfolio continues to drop.

If you’re worried about high inflation, rising home prices, food prices, and everything in between, this is a great time to make the needed adjustments to your budget. This will save you not only a bunch of time but also stress when seeing shockingly high prices for everyday things.

Even financially free couples like Carl and Mindy need to reassess, and you may want to as well!

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Episode 316

00:00 Intro
02:05 Terribly High Travel Expenses
12:02 Categories You Can Cut During a Downturn
19:06 Overspending Elsewhere
23:34 Financial Goals for The Rest of 2022
29:07 Inflation, Market Downturns, and More

#biggerpockets #biggerpocketsmoneypodcast #ep316
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Sounds like an amazing trip and wonderful memories 😊 ❤️ I love when you and Carl do podcasts

kristinolan
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I’m interested in other peoples food budgets I’d love to hear more about your grocery store budgeting 😍

lifewithmargot
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I’m literally mowing my lawn with my noise canceling headphones on catching up on the bp money podcast. You got it Carl

sameersmerchant
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I've enjoyed this episode along with the others I have seen. Love seeing the wheels of your mind spin as you talk about budgeting. I feel inspired to do better. Thanks

darlenekeene
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Hello Mindy and Mr. Mindy 😆!! Wonderful seeing you two. I can validate the volatile expense of vacation with your kids. Cost is completely frustrating… but vacation with the kids is completely worth it!!

doraexplores
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Thank you and yes show us how to work on a monthly expense Spreadsheet 👊🏽

jacirateixeira
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its definitely changed my FI# but now taking road trips to still enjoy life

autobotdiva
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Please what spending tracker are you using. I really need to start doing this.

darlenekeene
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Hi Mindy, just curious... do you base your budget off of your rental property incomes every year or a percentage of that going towards your own personal budget or from a different income? Just curious, thanks!

MattyB