As much as I love learning about saving/investing/tax efficiency, I can’t be bothered to micro-manage money AT ALL. Instead, I make sure to pay myself first by automatically transferring over 50% of my paycheque into my investment account and call it a day. Obviously I know how much I need for rent/bills but the rest is fair game - can’t be bothered to budget any further.
No, im def a natural saver. As soon as I get paid through any of my income streams I automatically start to transfer the money to my savings or investment (i have goals for each so i transfer out accordingly) i wont leave the money in chequings not even for a day (outta sight outta mind). I know which bills come out on which day so I will always have tht amount in chequings and ill leave a buffer for gas, coffee, eating out etc.. My emergency fund is fully funded. I live in Toronto btw😊. So i guess in a way i kinda do the Zero Base Budget ( although im not 100% strict. I have wiggle room) cuz i know my income, i know my expenses, I know whats roughly left so i will budget tht out to savings, investment.
I feel like I have such a hard time due to my impulses and adhd. I get such anxiety even thinking about money. 🥲 I've tried to start budgeting in the beginning of the year but just forgot about it agh
Im extremely frugal and I find it very difficult to actually go out and purchase something to treat myself. I think the sinking fund is great for a person like me who hates to spend money, and finds it difficult to make bigger purchases. For instance, I could go several years just working and saving away, but by putting $100 every month into a sinking fund for a vacation, after a couple years I can see that fund grow and know that it's time to take a break and spend some hard earned money.
I think the sinking fund is a critically important if you're going to go for Zero based budgeting. You have to treat it as an expense account and not a savings account, but it will stop you from blowing up the monthly budget when a large expense shows up. The alternative to saying on track is to borrow that money from a different point in time (the future) whether it's through loans to yourself or to others which is not helpful for most people as a savings target either.
Agreed that it makes a lot of sense when it comes to zeros based budgeting! Especially for expenses you know are coming up, vs creating different spending goals for yourself. Thanks for sharing, Ryan!
Hi Steph and Dan! Love your content. Just wanted to know where you currently take money from when those expected expenses (like dental appointments and Christmas gifts) if you’re not using sinking funds? I’ve been using sinking funds for the last few years and it’s massively improved my feelings about money. Having those sinking accounts doesn’t make it feel like you’re blowing out your budget or having to dip into your savings every time something comes up. So worth it!
I don't find budgeting hard. I'm a saver naturally. I plan my budget on paper then transfer it to an App for tracking expenses. Sometimes I go over some categories or under in others. I don't restrict myself too much because I generally spend less
Zero based budgeting sounds like a good idea. I currently have two sinking funds, car and vacation. The car fund is for car maintenance and insurance so I have money to spend on my car without messing up my other savings. I have been using my vacation fund as an incentive to spend less on “wants”. Any extra money saved after my other savings goes in there.
I couldn't find your Instagram account. Why don't you put the link on the description, it would super help. 💪 great job on the video btw. Thanks for that!
I don't think setting a budget is hard. Having a budget for ourselves is like running our household as a business. Its the only way a business can remain profitable and it works to keep the household prosperous in my opinion.
A lot of people beat themselves up when they overspend the budget and feel guilty but it's important to reflect on the numbers in your budget too. Example: you can spend $150 a month on Starbucks every day, or $75 every other day, to $20 for once a week. If you feel bad everyday you don't get your Starbucks after you made the budget cut you just need to ask yourself if you value the savings more than the coffee. Not saving money today has consequences but just understand if that tradeoff is worth it to you.
Very true - that’s where the ‘personal’ part of personal finance comes in - what you do spend should be up to trade offs that are worth it to you. As long as you’re also taking care of future you with saving/investing, too, ideally you can get rid of the guilty feeling!
Great video! I find budgeting easy as I love keeping track of what I'm spending. It's the sticking to it part that's a bit hard. I've found paying yourself first really helps with the self-motivation part
I set aside money every month for my contact lenses. I wanted to set aside money for other annual/irregular expenses too, but most are subscriptions that I could either switch to monthly or delay if I don’t have enough money for them. I still have an idea of how much I need to save for my annual expenses every month, and I try to make sure my savings goal is higher so I’m actually saving.
This may be a random question. But I’m curious as to what you’d recommend for the best BUSINESS bank account in Canada. I know you guys are doing UA-cam full time and pay yourselves out evenly each month, but I’m curious what that looks like and what accounts you use and would recommend if we are starting a new business. Thank you! 🙏🏼
You should checkout our most recent budgeting video - ‘How I’ll Save 50% Of My Income In 2023’. We’ve really broken out the ‘Other’ category to being more specific 😊
Hi guys, great video! I understand the need for catchy / clickbaity titles and thumbnails, but why didn't you use "Budgeting methods" in them? 1) it would be useful for the search algorithm, and 2) it would be clearer and it would explain better the video to the users. I was just wondering. But since you've been doing this for the last couple of months, you're either testing things, and/or you've already determined these types of titles and thumbnails work better, so...good for you! :) Also, regarding the sinking funds, I think they're a great idea. Consider this: you already know that you have to pay, let's say 120 dollars, for something in December. Would you rather take out 120 from your usual monthly budget, and go over that month, or would you rather put aside 10 dollars each month, which is much more doable, and not force yourself and feel bad in December? It makes sense to me...
I think your grocery spending is a bit on the higher side. Maybe it’s because of the store. Metro can be astonishingly expensive in compared to other stores like Walmart or Freshco. I think even if you paid for delivery with the Walmart app, you’d save significantly. It’s worth a shot. Also, that phone bill is crazy. Even with a contract phone, wouldn’t be more than 75. Maybe shop around for it.
I like sinking funds, I use it to cover my annual expenses like my Prime membership, etc. I find that having it prevents me from having to come up with the lump sum when it’s due. Also, zero base budget only works when you are not living pay cheque to pay cheque, if you are working from last months wages it great.
I budget but not with a lot of categories. I allocate the same amount every month to fixed expenses, saving/investing, a couple of sinking funds and the rest is spending money. The only category in spending that has a goal number is food/restaurants (400 CHF), since the rest changes from month to month (like transport, entertainment, clothes, gifts). Sinking funds are for things that are paid yearly (like memberships) or that are very irregular but bigger expenses (vacation, medical). I like sinking funds to make my budget/spending more regular! With my bank I can put them in different „pots“ even though all the money is in the same account. If I want to buy something a bit more expensive that’s definitely a want I sometimes wait til the end of the month an see if there‘s enough money left to get it. It all works because I am more of a saver than a spender maybe, but the system works pretty well for me.
That’s a great way to use sinking funds - thanks for sharing that! I like the idea of using them for expenses you know you’ll have and are paid yearly. 😊
I use a YNAB, a budgeting app that gives me flexibility and it allows me to know where every cent is allocated at any given time. That way I know if I have money for a certain activity or if I need to rethink priorities. However, I love the simplicity of your budget spreadsheet! I don't count sinking funds as part of my overall savings rate for the same reason! It's money set aside for future spending not future retirement :)
Great video if you are single, add kids to the mix and life throws your budget off. Kid's activities have gone up, braces, etc... The toughest thing is inflation, I have the same money but somehow I need to pull out of thin air more money to cover expenses that have grown anywhere from 4-15% increase. I especially feel bad for people with a variable mortgage.
Hey Marc! We hear you - that's a great point that you can cut down on your own spending, but with your kids it's a whole new challenge (especially with all of the price increases)
Great video! I use sinking funds for things like my car/home insurance. I pay once a year to save on the interest costs, so I save a certain amount each month so that I can easily pay the full amount when it is due. I still also save for retirement - just wanted to point out that people can be doing both (saving for upcoming expenses as well as for retirement).
Do you find budgeting hard? If yes, then tell us why - and if no, tell us what budgeting method you use! ⬇
As much as I love learning about saving/investing/tax efficiency, I can’t be bothered to micro-manage money AT ALL. Instead, I make sure to pay myself first by automatically transferring over 50% of my paycheque into my investment account and call it a day. Obviously I know how much I need for rent/bills but the rest is fair game - can’t be bothered to budget any further.
@@RoadmapToOneMillion As long as you're prioritizing future you, simple is great! 👏🏿👏🏻
No, im def a natural saver. As soon as I get paid through any of my income streams I automatically start to transfer the money to my savings or investment (i have goals for each so i transfer out accordingly) i wont leave the money in chequings not even for a day (outta sight outta mind). I know which bills come out on which day so I will always have tht amount in chequings and ill leave a buffer for gas, coffee, eating out etc..
My emergency fund is fully funded. I live in Toronto btw😊. So i guess in a way i kinda do the Zero Base Budget ( although im not 100% strict. I have wiggle room) cuz i know my income, i know my expenses, I know whats roughly left so i will budget tht out to savings, investment.
I feel like I have such a hard time due to my impulses and adhd. I get such anxiety even thinking about money. 🥲 I've tried to start budgeting in the beginning of the year but just forgot about it agh
Im extremely frugal and I find it very difficult to actually go out and purchase something to treat myself. I think the sinking fund is great for a person like me who hates to spend money, and finds it difficult to make bigger purchases. For instance, I could go several years just working and saving away, but by putting $100 every month into a sinking fund for a vacation, after a couple years I can see that fund grow and know that it's time to take a break and spend some hard earned money.
That's a great way to do it, and especially if you're great at saving! 🙌🏿🙌🏻
I turned out to be like you after being careless with my money during my 20s. I became frugal that it’s scary 🫣🫣
I think the sinking fund is a critically important if you're going to go for Zero based budgeting.
You have to treat it as an expense account and not a savings account, but it will stop you from blowing up the monthly budget when a large expense shows up.
The alternative to saying on track is to borrow that money from a different point in time (the future) whether it's through loans to yourself or to others which is not helpful for most people as a savings target either.
Agreed that it makes a lot of sense when it comes to zeros based budgeting! Especially for expenses you know are coming up, vs creating different spending goals for yourself. Thanks for sharing, Ryan!
Hi Steph and Dan! Love your content. Just wanted to know where you currently take money from when those expected expenses (like dental appointments and Christmas gifts) if you’re not using sinking funds? I’ve been using sinking funds for the last few years and it’s massively improved my feelings about money. Having those sinking accounts doesn’t make it feel like you’re blowing out your budget or having to dip into your savings every time something comes up. So worth it!
I don't find budgeting hard. I'm a saver naturally. I plan my budget on paper then transfer it to an App for tracking expenses. Sometimes I go over some categories or under in others. I don't restrict myself too much because I generally spend less
That’s great 👏🏿👏🏻 thanks for sharing!
Zero based budgeting sounds like a good idea. I currently have two sinking funds, car and vacation. The car fund is for car maintenance and insurance so I have money to spend on my car without messing up my other savings. I have been using my vacation fund as an incentive to spend less on “wants”. Any extra money saved after my other savings goes in there.
✍✍✍✍✍🗼🗼🗼🗼📩
I couldn't find your Instagram account. Why don't you put the link on the description, it would super help. 💪 great job on the video btw. Thanks for that!
Feedback appreciated
Chat up
Let's talk✍️✍️✍️☝️☝️🗼
I don't think setting a budget is hard. Having a budget for ourselves is like running our household as a business. Its the only way a business can remain profitable and it works to keep the household prosperous in my opinion.
Love that way of looking at it 👏🏿👏🏻 so true!
A lot of people beat themselves up when they overspend the budget and feel guilty but it's important to reflect on the numbers in your budget too.
Example: you can spend $150 a month on Starbucks every day, or $75 every other day, to $20 for once a week. If you feel bad everyday you don't get your Starbucks after you made the budget cut you just need to ask yourself if you value the savings more than the coffee.
Not saving money today has consequences but just understand if that tradeoff is worth it to you.
Very true - that’s where the ‘personal’ part of personal finance comes in - what you do spend should be up to trade offs that are worth it to you. As long as you’re also taking care of future you with saving/investing, too, ideally you can get rid of the guilty feeling!
It's okay to fall off the horse sometimes. Consistency vs perfection. Remember you're human.
Love ‘consistency vs perfection’ - that’s a great reminder 😊
You'r whole budget is less than my daycare bill. So...
I like money, money is really good, money I like my friend, I just love it soon much, psh
Ha! 🙌🏿🙌🏻
As a student, I save almost my entire income from my part time job. However, I haven't treated myself to anything in a long time so this helps 😊
That's great that you're able to save so much from your part time job! 👏🏿👏🏻
Great video! I find budgeting easy as I love keeping track of what I'm spending. It's the sticking to it part that's a bit hard. I've found paying yourself first really helps with the self-motivation part
Thank you 😊 That’s a great point - the budgeting part is easier than the sticking to it part!
I set aside money every month for my contact lenses. I wanted to set aside money for other annual/irregular expenses too, but most are subscriptions that I could either switch to monthly or delay if I don’t have enough money for them. I still have an idea of how much I need to save for my annual expenses every month, and I try to make sure my savings goal is higher so I’m actually saving.
That makes sense! Love that you have saving in mind, too 👏🏿👏🏻 thanks for sharing!
Steph's phone plan gets me every time! 🤣But Canada is known for having really expensive data plans compared to the rest of the world 🙄
Ha 😅 seriously!
do you guys have a template for your excel spreadsheet for budgeting?
Hey! We do, it's on our website for free 😊
This may be a random question. But I’m curious as to what you’d recommend for the best BUSINESS bank account in Canada. I know you guys are doing UA-cam full time and pay yourselves out evenly each month, but I’m curious what that looks like and what accounts you use and would recommend if we are starting a new business. Thank you! 🙏🏼
@13:07 maybe don't make a bunch of sinking funds for spending but just to separate for emergency savings, debt, investing etc. That may help 😊
Are you guys are a fan of the envelope challenge???
Feedback appreciated
Chat up
Let's talk
The “other” category is the hardest one to stick to lol
You should checkout our most recent budgeting video - ‘How I’ll Save 50% Of My Income In 2023’. We’ve really broken out the ‘Other’ category to being more specific 😊
Hi guys, great video! I understand the need for catchy / clickbaity titles and thumbnails, but why didn't you use "Budgeting methods" in them? 1) it would be useful for the search algorithm, and 2) it would be clearer and it would explain better the video to the users. I was just wondering. But since you've been doing this for the last couple of months, you're either testing things, and/or you've already determined these types of titles and thumbnails work better, so...good for you! :)
Also, regarding the sinking funds, I think they're a great idea. Consider this: you already know that you have to pay, let's say 120 dollars, for something in December. Would you rather take out 120 from your usual monthly budget, and go over that month, or would you rather put aside 10 dollars each month, which is much more doable, and not force yourself and feel bad in December? It makes sense to me...
Greetings👋appreciate your comment dm for something New to Participate on other exciting project
I think your grocery spending is a bit on the higher side. Maybe it’s because of the store. Metro can be astonishingly expensive in compared to other stores like Walmart or Freshco. I think even if you paid for delivery with the Walmart app, you’d save significantly. It’s worth a shot.
Also, that phone bill is crazy. Even with a contract phone, wouldn’t be more than 75. Maybe shop around for it.
Agreed! I’ll be looking into lowering my phone bill in the next monthly budgeting video 😊 I’m definitely ready to bring that expense down
I like sinking funds, I use it to cover my annual expenses like my Prime membership, etc. I find that having it prevents me from having to come up with the lump sum when it’s due. Also, zero base budget only works when you are not living pay cheque to pay cheque, if you are working from last months wages it great.
That makes sense! Thanks for sharing 😊
I budget but not with a lot of categories. I allocate the same amount every month to fixed expenses, saving/investing, a couple of sinking funds and the rest is spending money. The only category in spending that has a goal number is food/restaurants (400 CHF), since the rest changes from month to month (like transport, entertainment, clothes, gifts). Sinking funds are for things that are paid yearly (like memberships) or that are very irregular but bigger expenses (vacation, medical). I like sinking funds to make my budget/spending more regular! With my bank I can put them in different „pots“ even though all the money is in the same account. If I want to buy something a bit more expensive that’s definitely a want I sometimes wait til the end of the month an see if there‘s enough money left to get it. It all works because I am more of a saver than a spender maybe, but the system works pretty well for me.
That’s a great way to use sinking funds - thanks for sharing that! I like the idea of using them for expenses you know you’ll have and are paid yearly. 😊
Hey Steph please can you make passive income, side hustle videos , please and thank you.!
Hi! Yes, we plan on doing a video like that soon 😊
Thanks for sharing, awesome stuff!
Thanks for watching! 😊
It would be really great if you shared these spreadsheets to us or did a video about em. Keep up with the good work. Been listening for two years now
Chat up for more profitable investment strategies......
I use a YNAB, a budgeting app that gives me flexibility and it allows me to know where every cent is allocated at any given time. That way I know if I have money for a certain activity or if I need to rethink priorities. However, I love the simplicity of your budget spreadsheet! I don't count sinking funds as part of my overall savings rate for the same reason! It's money set aside for future spending not future retirement :)
We saw a lot of people say they used YNAB on our Instagram poll! It seems like a useful app 😊
Great video you could have used this video to market the budgeting spreadsheets on Esty that is if you are going to sell them
Thank you! 😊
Great video if you are single, add kids to the mix and life throws your budget off. Kid's activities have gone up, braces, etc... The toughest thing is inflation, I have the same money but somehow I need to pull out of thin air more money to cover expenses that have grown anywhere from 4-15% increase. I especially feel bad for people with a variable mortgage.
Hey Marc! We hear you - that's a great point that you can cut down on your own spending, but with your kids it's a whole new challenge (especially with all of the price increases)
@@stephandden Keep up the great work guys, love the videos!
Thankyou! I like the optimism with you guys for growing this channel!All the best
Thank you 😊
Great video! I use sinking funds for things like my car/home insurance. I pay once a year to save on the interest costs, so I save a certain amount each month so that I can easily pay the full amount when it is due. I still also save for retirement - just wanted to point out that people can be doing both (saving for upcoming expenses as well as for retirement).
That sounds like a great way to use them 😊 thanks for sharing!
Hey Steph and Den, I love this video and how you make budgeting make sense with your own experiences. Keep these videos coming!! 😊 😊 😊
Thank you! More to come 😊
Oh no you de'ent!!!
😊
Yay, another video!! Great timing as it has been so difficult sticking to my budget
🥳🥳 great timing!
I use zero based budget using YNAB and it's been working well for me
Feedback appreciated
✍✍✍☎️☎️☎️📩