Next Level Life is a well researched YouTube channel that strives to make money understandable to everyone. This week’s two videos provides describe 6 different methods of managing money as well as strategies to be successful using the methods.
Next Level Life – The 6 Styles of Budgeting Explained | How to Make A Budget (16 MINUTES)
KEY TAKEWAYS:
This video above describe 6 different methods of managing money including:
- Percentage Budgets, for example the 50-30-20 budget or the 60% Solution
- Hard Copy Budgets, for example the Cash-Only budget or the Envelope Method
- Comprehensive Budgets, for example the Zero-Sum budget
- Automatic budget also known as the “No Budget ” budget
- The Values Budget
- The Reverse Budget
Next Level Life – Why Budgeting (Almost) Always Fails (And How to Make It Work For You | What Budgeting Teaches Us (18 MINUTES)
KEY TAKEWAYS:
WHAT?!?!? Why are we learning about something that almost always fails?!?! Setting up a budget can be time-consuming and sticking to a budget can be tedious. UNLESS that budget is making your dreams possible.
When budgets are used successfully
- Budgets are not used to help you “control your spending”, budgets help you decide what is worth spending on
- When we spend money on the things that bring us joy, our spending becomes controllable and less reliant on perpetual willpower
- Willpower fluctuates over time, therefore deprivation budgets that rely on willpower are destined to fail
- A budget allows you to evaluate your current spending and make informed, conscious decisions on what you want pursue and what you can eliminate without reducing your life enjoyment.
DISCUSSION QUESTIONS:
How can you use money to live a fun, fulfilling life?
Which of your goals would make the effort of budgeting worthwhile?
<< Back to Week Two – Summary << – – – – – – >> Forward to Week Two Learning Module 2 >>
test comment w2 lm2