Become a Creator today!Start creating today - Share your story with the world!
Start for free
00:00:00
00:00:01
Annual Budgets
280 Plays3 years ago
In this Simple Step episode, it’s time to affirm your annual budget. Whether for your business or your personal finances. Your reviewing and setting your budget gives you a chance to make sure you’re spending your resources on what you value, reacting appropriately to changes in your situation, and creating a place of agreement between your business partners and spouses.
If you have a budget but need some help sticking to it, check out the Uncommon Wealth episode with our own Ryan Garvey as he discusses Qube Money, a cash envelope option for the digital age. If you want to give Qube Money a shot, use the promo code UNCOMMON for two free months by visiting qubemoney.com.
Recommended
Transcript
Introduction to Uncommon Wealth Podcast
00:00:00
Speaker
Everyone dreams of living an uncommon life and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast. We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
Affirming Your Annual Budget
00:00:25
Speaker
Hello, everybody. Welcome to the Uncommon Wealth Podcast. I'm your host, Philip Ramsey. And I'm Brian Dewhurst. Welcome back. It's a simple step. It's quick. It's easy. It's just in and out. This is a big one. This is a big one. And it's something that I think a lot of people don't struggle with, but I think probably would be refreshing just to talk through. And it is affirming your annual budget for your business or even personal. Yeah, I think on so many levels, you know, you have to have a budget. And
00:00:56
Speaker
There's a talking head out there in our industry who looks somewhat like Philip. And I'll leave it at that. But he's like huge on this like, oh, you don't need a budget. You just need cash flow. And it's just like, I don't know. I think it's like one of the dumbest things you could say. I get it. Like if you make a lot of money, yeah, you probably don't need a budget. But like, think about Amazon. You know, like, do you think they have a budget? I guarantee they have a budget. And that's why it's locked in.
00:01:23
Speaker
Well, it's dialed in to the penny, you know.
Reaffirming Budgets Amid Inflation
00:01:27
Speaker
So the idea that like the more money you make, the more the need for a budget goes out the window, I think is just the wrong thing to say, because it seems like the more people we deal with and the bigger businesses, the more dialed in their budgets are.
00:01:45
Speaker
So kind of speaking about it from the business aspect of it, and we're kind of coming at that point. But also, I think, just as families with obvious feel of inflation that everybody's experienced over the last 18 months, I think it's just always good at your end coming into a new year to reaffirm the budget. Like, where is all our money going?
00:02:07
Speaker
Did we get a raise? Did somebody lose their job? Like, do we need to pivot? You know, what's important to us? What are our goals? Is our budget aligned with our goals? And then I think, yeah, that's just a huge part of recalibrating for the year. And then, you know, in more transparency, because we're getting a lot of feedback that when we talk about how we manage our business or what we do personally is helpful to people.
00:02:33
Speaker
One of the steps that I want to take for our business this year is really taking like last year's expenses and projecting that forward, having like an estimated budget and then truing it up to actual spending on a weekly basis.
00:02:52
Speaker
And so I've learned that kind of from some other larger business owners. And that's kind of the next evolution that I want to take for our businesses where you, you have the budget for the year pro forma, or, you know, whatever buzzword you want to use to describe that, but where you're truing it up and, and marking yourself to that budget on a weekly basis.
00:03:14
Speaker
And so, yeah, I just think it's a good time of the year to reassess, reaffirm.
Challenges of Budget Adherence
00:03:19
Speaker
Yeah, it's a good time as well as, I mean, if you talk about personally, like we always say the two biggest factors in retirement are when you're going to die and how much do you spend every month? Which if you know when you're going to die, we have a lot more things to talk about than how much you spend. So we usually just focus on, well, how much are you spending? And that's one thing that you can control.
00:03:43
Speaker
And so to try to understand how that is now what I will say personally as as you are building a budget oftentimes when you're trying to cut back and be super stringent on your budget it's it feels suffocating. But the more times you do that the more months that you are.
00:04:02
Speaker
In line with your budget it gets easier and so it's almost like a professional athlete who's been eating tons and tons of food but they've been working out like crazy a lot of times after they get done working out like crazy out of graduation or whatever their
00:04:17
Speaker
They keep eating like they're reading and so they have to start titrating themselves off of the food that they've been eating so. That's my analogy so if you think about your budget you've been spending a lot now you're gonna cut back man it really stinks for the first
Tracking Finances Regularly
00:04:32
Speaker
couple months.
00:04:32
Speaker
but after a while you kinda get used to that. So, affirming your budget and making sure everybody's on the same page, not only as personal, you know, you and your spouse, but also in a business to make sure all of the things that you can account for are gonna stay in budget is really powerful for moving forward. And so, you know, I think weekly is really a good thing. My quick, we got 30 seconds, so figure this out. How do you, what do you do if you are off budget, like in a week?
00:05:01
Speaker
Um, man, I wasn't prepared for that question this late, but, uh, I do think just before I answer that, I do think it is powerful to track your numbers as a business weekly. Yeah. You know, the, the big companies, I mean, they have people, you know, they pay all these different people and accounting and all these, I mean, they're tracking their numbers daily. I mean, they report on them monthly and quarterly, but.
00:05:23
Speaker
They're really tracking and recording everything daily. Anyways, if you're not tracking your numbers as a business more frequently than monthly, then I think that should be something you could think about.
Adjusting Off-Budget Strategies
00:05:38
Speaker
If you're off budget, yeah, I think you have to make hard decisions, have conversations.
00:05:44
Speaker
I think that's also part of planning is what are the milestones you're trying to achieve if you're investing in a new product or service or you're adding an expense for a position or something like that. You're seeing a lot of companies lay people off right now. I think managing and tracking a budget is super important so that maybe things don't come to that where you're eliminating jobs or closing plants and all those different things that we're starting to see.
Conclusion and Services Plug
00:06:13
Speaker
That'd be how I answer that. What do you think? I think that's good. It's been six minutes. We've been one over, one minute over. Might've been a dual cast. It was in the, it was in the mid range, but it was in the mid range. You got, you got a bonus extra couple of seconds. So you're listening to Uncomfortable Wealth Podcast. I've been your host, Philip Ramsey. And I'm Brian Dewhurst. Until next time. Thanks for listening.
00:06:37
Speaker
That's all for this episode brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.