Ways To Save Money On A Tight Budget
Man how you supposed to save money on a tight budget right?! I’ll tell you what. I know what poor feels like. I know what Poe feels like and I’ve also been able to travel the world. Becoming a self-made multi-millionaire, figuring out who I am, what my life purpose is. I tell you what, knowing Taj Mahal and stepping onto the great pyramids in Egypt and having been in Phuket some of the nicest beaches on the planet been in Bora Bora. I’ll tell you that budgeting at one point was one of those really critical key aspects of figuring out how to let the rest of my life become everything it’s become. Kris Krohn here with Limitless TV and I’m going to share with you my number one tip on how to budget like a boss to help you step into this amazing life that you want to live. So I’m going to share with you in a moment my 4 envelope system. My wife and I developed this back when we were newlyweds when we didn’t have money and yet we found a goal something truly worth saving for. In fact, the first mentor that told me what I needed to do to make my first million dollars required me to put five thousand dollars in my savings account and work on actively establishing my credit. Those were the two things that I had to do. And for a 14 month period of time, before I hit that goal, I needed to find a way to put $5,000 together when I didn’t have two pennies to rub together. And I want to share with you when we first got married, we were looking for examples on how do we budget. And my wife, her parents financially did really well but came from very frugal background and they did this, they had all of these amazing uphill in the snow both ways stories about how poor they were when they started out their life kind of like my wife and I did. And we developed a system from it called KPPPM because we were poor. In fact, we were probably more like poo because you couldn’t afford the R. I kid you not. This KPPPM means cleanse parents penny-pinching month. Cleanse parents penny-pinching month. In fact, they got this one story where they had saved up money for this two-dollar can of Lawry’s seasoned salt and baby Ben had knocked it over and spilled the salt out and it ended up being this this traumatic thing of oh my gosh we save this money we bought this this luxury item of seasoned salt and been it’s gone to waste. And they had stories like this. They, they and they have the banana box house. This was a house where their baby, the crib was about a box it was a banana box and that’s what they actually made his bed out of and Kalenn and I were really inspired by that and realized that, if we were going to save this $5000 and frankly whatever it is you need to stay fourth we needed to kind of pull money out of thin air. How are we going to do that? So we would establish a cleanse parents penny-pinching month which meant work that we were going to become wise stewards in how we allocate our resources and I’m going to tell you right now your resources can stretch way further than they currently might be depending on mindset and it’s going to start with the belief that you have plenty and enough to spare. And I can invite you to write that one down. I got plenty of enough to spare because that’s going to create some room for a margin to start setting money aside for whatever it is you need. And so with that let me share with you my four envelope system. Alright. so budgeting, you can turn it into a game and you can make it fun and it requires just a little bit of organization. Once you have your why and you know what you want so that you can aim that budgeting for a purpose rather than just, listen budgeting for the sake of budgeting? Man, give it direction, give it aim, and give it a purpose. And then Kalenn and I, when we got started we used the four envelope system. We had four physical envelopes and what we would do is we would divide all of our money into number one, personal use. Okay personal use was, what we were going to be consuming our money on every month. Personal use was food and gas and our monthly expenses. Number two, there was an investment envelope which was we’re investing in our future. We can’t live paycheck to paycheck our entire life or just get ahead a little bit. We decided the incremental growth was never going to get us where we wanted to go so eventually we were going to have to invest in us and we’re going to have to invest in, investments like real estate and business and other things. So even if we were, even if it’s just a dollar a month or ten dollars or $50 that’s a start with putting money towards your investment envelope. Number three, savings. This is also really important. Eventually, if we can save a little for a rainy day we start creating peace of mind. We make it easier to choose out of scarcity. So every month, money would go into savings and then number four, charity. And you know my wife and I, in our religion, we pay a 10% tithing. This is one of the ways that that we give and that money gets to go towards really good causes. We believe in and do a number of other charitable acts and it’s this idea that says, all the things that we have is it really ours? let’s make, let’s pay it forward and let’s make an investment into other people, into the universe, organizations, institutions and circumstances. So this four envelope system no matter how much money you have every month the idea is and in the beginning with the tight budget a lot of it might be going to that personal category which is what do we need to sustain our household. Number two, get something in that investment envelope. If you’re not making enough money and moving backwards, put that money in your investment. You don’t invest when you have surplus. Investing is a priority. It’s more important than your cellphone bill, it’s more important than your home bill, you have to invest in yourself. Because when you don’t, if you don’t have a plan for it, how you’re going to ever get out of your circumstance? you need to do something to go beyond. Don’t just wait for things to change with time or for the promotion to finally come. Make that an expense that is just as real as paying off that credit card. Number three, savings. You’ve got to get your money set aside to save so that should you get behind the 8-ball with something, you have something to fall back on rather than panic. Because if you don’t got nothing, phone back on panic it’s that fight or flight it gets your adrenaline going and not in a good positive way. It’s training your chemistry, your body, your mind, everything to be in that space of lack and scarcity. When in fact, we want budgeting this is why we need a positive aim to produce something positive uplifting and free. And then finally, even if you don’t got money at the end of the month find a way to give. Find a way to give back because as unfortunate as your circumstance might be or maybe you’re in a great situation but you’re budgeting for something you really believe in, tithing, charity, this is a way to practice detachment which is a way of letting go and releasing some of the selfish or self-interest of what about me and what do I want and to know that we live in a world where other people are in need and you’ll like the human being you become when you give back. And so I recommend that you implement this four envelope system. Today in my modern day, Kalenn and I do it with four different bank accounts and all the money that comes in it’s going to get allocated no matter what into those four and what that will do with time is build a momentum. It’s going to build growth because $100 a month set aside for investments may not feel like a lot but when you get much it feels like it’s under control and when you’re shifting out of scarcity and anxiety and shifting into into your birthright of prosperity and to shift into abundance then, oh tax return came in $2,100. Let’s put 500 towards our this month’s investment account and boom there was a great, there was a great bump there. Oh let’s get back a little more charity. Let’s put that extra fifteen hundred dollars in savings and instead of consuming it and living on it. This simple little system that I’m sharing with you is not about how to budget it’s more about why to budget and the really big picture that starts with a belief that there’s always an excess amount of money at the end of every month to make sure that there’s money to set aside for savings, investment, and charity. And when you do that it’s your first steps of stepping into more of your prosperous life. You know me and my team we put together, every now and then, one of our three day wealth workshops to really help people. Take what you just started learning here on budgeting and take it to a whole new level. Like how do you set money aside and save? how do you step in to investing? and how do you step into a mindset of prospering in abundance that can allow the birthright of prosperity to really enter and flow through your life. And I want to invite you. Click the link below and find out. And you know what? take that first little bit that you saved in your investment envelope and come check out one of these events so that you can educate yourself on how to get to your next level.