The Reverse Budget: What It Is, And Why You Need One

[@marzipan2555]

5:07 is when the budget starts

[@westvirginiaglutenfreepepp7006]

Thank you

[@koreystephens]

The “production” of this channel gives its a “politician” feel. Like she writes a full script and measures every word and practices the delivery in a mirror.

[@bellla6831]

u r godsend

[@kagitsune]

​@@koreystephens Aka, a professional? 🤔

[@CardiniPanini]

​@@koreystephensit's almost like that's video and film production

[@Reberi96]

I do a variation of this where i use the "second checking account" for the day to day spending. After deducting savings and expenses, I divide the spending money by 4.33 and transfer my "weekly spending amount" to the second accound every friday. This way im able to pace myself througout the month and spend the money freely without worrying if i'll make it to the 31st

[@KW-up2ox]

Ooooh! Gonna try this!

[@breezybre2670]

How do you get enough money up front to cover the bills for the month?

[@gigilaroux762]

@@breezybre2670she probably started saving for a few months to be able to always have a months worth in there I’m guessing.

[@DrJennyPhD]

It helped me a lot to get my savings account with a different bank from my checking account. When I had it in the same bank I was constantly pulling from savings at the end of the month to buy things I “needed”. But just by having to wait 2-3 days for a transfer curbed almost all of my impulse spending.

[@lover12112]

This is exactly how I do my budget, I find it great to prevent late fees and reaching vacation goals.

[@Lau3464l]

Ditto! Making sure the bills get paid first and foremost always makes my stress so much less

[@joetrusnik7481]

I've been doing this for years. Initially, it's what I was doing while trying to figure out how much to budget for various expenses, and then saving the rest. After a while, I realized that it was easier to just plop the cash into savings early on, knowing I was leaving enough to cover my bills. The only things I don't do are: (1) separate checking account, and (2) automate everything. I don't see a need for a separate discretionary account for myself since I already know my expenses and have a sizeable emergency fund, and I don't automate because I get a little dopamine hit every time I transfer money to my savings account or brokerage. I do see the wisdom in these steps for many people, though, so it was good to have them in the video.

[@P0oDoll]

EXACTLY SAME THING HERE! Makes me so happy to plop extra money into my savings kekekeke :D

[@Draggonny]

I've been doing this pretty much my whole working life. Bill money goes into the account the bills come out of. Some go into my personal savings by standing order. Some go into joint savings by standing order. Whatever is left in my current account after the 1st of the month is mine to spend. But I still get the dopamine hit by going into my account at the end of the month and transferring anything left over at the end of the month into savings too. So I pay myself twice, at the beginning and end of each month. My husband does it your way, keeping track of his spending and then manually transferring everything over. As the bills come out of his current account he keeps an extra buffer amount in there in case of a high utility bill or he uses more petrol that month. Using this method we've been able to pay for major purchases like our car, a new kitchen and holidays all in cash and almost entirely stop using credit.

[@astridteeuw2374]

My husband and I have used exactly this method for 32 years now. We were able to affort a nicer house twice and get morgage free within 30 years. The two checking accounts (we decided to have three) work great. And it never restricted us, we always felt freedom to spent on fun or nice things as well.

[@marinacosta8835]

The more I watch financial education videos, the more I realize I need to thank my mom. She learned by experience and passed it on to me and my brother, and while she didn't have the tecnical terms, the actual strategies were spot on.

[@constancebenson2197]

Maybe your Mom could make a video.

[@holidaygirl1224]

This video was the push I needed to finally sit down and look at my expenses. Not complicating it made it less daunting. I avoided it for years feeling so overwhelmed by the idea. But I feel so much better now seeing what I have to work with. Thanks TFD 🤑

[@ricseeds4835]

Protip: Don't have a line item in your budget called "Shopping". That's too vague. Break it down into specifics: Clothing & Shoes Home furnishing Hobby materials, etc If you're having difficulty putting it into a specific category, you might be looking at a frivolous purchase

[@junelawson6708]

Being that specific is probably going to cause issues. A lot of the resulting categories would be rather irregular, so could probably not be managed on a similar timescale to the rest of the budget - i.e, A clothing budget would likely be annual, while a budget might use a weekly or monthly timescale. Working within that difference is probably going to be too complex for most people. Also, categorising spending as "frivolous" isn't very useful, as it's ultimately a moralistic judgement, which just results in counterproductive shame. Budgeting should be concerned with managing expenditures, not with judging expenditures.

[@thatjillgirl]

Yep. Being very specific with your line items can let you know really fast where you're overspending.

[@sharonoddlyenough]

General categories are fine to start, when the habits are just being built. Later, breaking the categories down gives more information on what a person is spending on. ie: food category vs groceries and takeout and household supplies categories (since I get cleaning supplies from the grocery store)

[@autobotdiva9268]

perfect for adhd

[@drewalexanderwest8501]

I used to reverse budget and I am highly considering it again. I love spreadsheets and budgeting, but I am burnt out. I'm ready for the simplicity again!

[@Jt-Jt]

Thank you. I use this method in my budgeting. I love all of these tips. The only thing that does not work for me is the automate tip. I want the $$ gone from my account ASAP. So when I get paid, I set aside 20 minutes that afternoon and I pay all of my bills immediately. It is very rewarding to check off each bill, including the payment to myself each time. I feel like I have accomplished little tiny progress milestones. ❤

[@neuideas]

I do not budget monthly. I get paid weekly, so my budgeting is on a weekly scale. Any monthly expenses are divided by 4. I do not like automatic transfers, although I do have a couple set up (T-Mobile charges $5 for not having one set up, for example). My preference is to set up automatic bill-pay from my bank's website. This gives me immediate control, and the ability to adjust quickly. The majority of automatic transfers I do have, are drawn from a secondary account, and are funded weekly via internal transfers; once again, I'm using my bank's website for this purpose. Yes, I automate nearly everything, one way or another.

[@marupa1506]

I was doing this for a very long time without knowing it was reverse budgeting . I get paid on the last day of every month . I pay myself and pay all my bills on the 1st of every month (next day) and whatever is left is for my variable expenses like groceries, gas etc and for other things like shopping This way I never have to worry about maintaining too many bank accounts and gives me relief , that I working towards my goal as well as paying all my bills on time

[@SusanDelRey]

Great video. I do track my expense, but cannot budget into smaller categories. My categories are vague (savings, bills, food, necessities, other) and I put money into savings and bills first. I cannot go further than that. I tried and it felt too restricting to me. I'm currently figuring out ways to improve my spending habit for now as too much is going to food. 😂

[@m_here1]

I’ve seen this budget method around but no one has explained how to set it up so clearly. Thank you!

[@AshleySpurlin]

I’ve been doing something similar to a reverse budget but rather than having two checking accounts, I use a credit card for discretionary spending and pay it off each month.

[@novalinnhe]

I'm really glad to have come across this video, because I slowly cobbled together a system for myself which works pretty close to this and had always been worried that I wasn't "budgeting" correctly. However, the idea of sectioning off bits of money and spending freely from what was left felt much more natural to me, and I have been able to reach my financial goals consistently each year. It's really validating to know I was doing something right and not messing up. Thank you.

[@Marius_The_Norse]

I have done reverse budgeting for years, including separate checking and savings accounts, but never had a name for the method until now!

[@Starfang_Wanderer]

I really like the idea of a reversible budget. I'm gonna try and implement it. I'm self employed now, so I feel like im really stressing over money, cause my income is going to waver month to month.

[@cloisterene]

A family of five in a one bedroom apartment would never be allowed today. In those days poor or 'frugal' people could get away with it, but landlords will not allow a lot of people crammed into small apartments anymore. No sleeping on the sofa or pallets on the floor. Those days are long gone. In those days, people likely knew their landlord personally and were seen as real human beings with needs and good qualities besides being able to pay the rent. Now, apartments are managed by multinational companies with AI tools, high turnover, and 33 page leases full of stultifying rules and stipulations. And they charge extra for *every little thing.* They even create charges for stuff that makes zero sense, like "Utilities Reimbursement FEE" when you are fully responsible for paying for your own utilities, they don't pay a dime of it.

[@starbrite526]

This is how I've been budgeting for the last 10 years. I oftentimes do a check in once a quarter to see if I need to adjust savings and mortgage payments but it cut down on the stress that I 've had about money and making payments since I was in college. I do split payments on all of the bills that I can, every pay period so that I, at least have one extra payment on the books. As a Federal employee, I never know with shutdowns so I know I'm at least covered for 1+ month, on all of my bills, before I have to dip into my emergency funds. That's also been helpful.

[@mars2459]

The 50\20\30 method works well for me and do reverse budget from there. At least this way I’m already designating in advance a portion of my monthly income in 3 ez buckets and you can go in detail from there if you prefer

[@grumpyschnauzer]

It would help if they used realistic entry level pay for the example. People always use a midrange amount to set an example but the people who have the most issues with budgeting and making ends meet are people living off of entry level incomes. I see many financial gurus assume people are starting with a monthly $4-$5k a month.

[@Erin-rg3dw]

I did a variation of this budget when I had cheaper housing. I decided early on how much I was putting into emergency & student loans, then set up how much was for other categories aside from housing since it was the biggest. I also set up multiple accounts for different spending categories (i.e. housing costs) so that money isn't sitting in my checking. Speaking of housing, on the write-in question, I would definitely stick with the cheaper housing as long as it fits all other needs (location, safety, etc.). It's generally harder to downsize than upsize, plus bigger space requires more resources other than just higher rent. There's also no guarantee you'd be able to get that deal again if you change your mind, so I'd keep pocketing the savings for as long as you can.

[@annabanana8013]

I do a variation of this, I think. I started with paying myself one days pay as my savings (I had a very low paying job, so that was all I could do) and I invested that money.

[@ashmeyer21]

This advice is exactly what I needed to hear right now! Thanks TFD for another great video series 👍

[@butternutsquash6984]

Having an account to pay bills is how i manage to keep track of my money. I keep a list of how much needs to go from each paycheck, pay bills on payday, and then i don't have to constantly think about head math when i use my debit card.

[@camilamart114]

Love this! I struggled budgeting by categories, is too much information and too much time categorizing everything. 😊

[@EnzroGreenidge]

This is how I manage my money. I love the peace of mind that it gives me.

[@Jojo-tf2zp]

Not me over here really thinking I'm inventing my own budgeting method only for it to be this one the whole time 😂

[@katekramer7679]

Yeah I don't get it. What's the opposite of a reverse budget? Listing out all of your expenses?

[@IiOnna222]

I didn't realize I was doing this kind of budgeting already. It's been working right for me. I just don't have that second checking account. Good video.

[@lilykhandker4126]

Just found this video I realised that I have been been doing this reverse budgeting for years without putting a name to it One of the reasons it works for me us that my husband and I have no debt except our mortgage We keep our money seperate and pay all joint bills/costs from our joint account I have been watching a few video's where people put their money into wallets. I appreciate this works for people with large debts and/or unable to control their spending but these people seem to spend a lot of time doing pretty books/pages while only saving very little at the end if the month

[@sarahwbs]

I can't even imagine having money left over at the end of the month that isn't accounted for in my budget 😬

[@sweetcandy111204]

I use 2 different banking institutions (one for my everyday expenses and one for my savings). The money is automatically withdrawn so I don’t even have to think about it.

[@oreomchi]

1. Assign amount for your goals (savings), open an account for that 2. Assign amount for your bills (needs) 3. Free to spend what's left - always automate the needs and savings first

[@lizzipooh4]

This is how I budget. I’ve been doing it for years and I recommend finding savings accounts where is hard to withdraw the money like internet banks

[@choconutbiscuit]

Without even knowing it, this is how I deal with my money personally! I have a separate checking account that I’ve put in place that doesn’t have a debit card - only checks.

[@AtomicDimension]

Whaaat, this is my budget style! Glad to know that my logic behind it actually makes sense!

[@ivybichon8582]

I’ve outlined myself more with the reverse budgeting over the last several years. I automatically move money from my checking account to my high-yield interest savings account every month. In addition I have 12% of my pay deducted for my 401k. I have a new job so at this time they do not contribute. But at least I’ve done my part of paying myself first.

[@iamthatgaby]

that feel when I already live in Costa Rica

[@MelissaKitto525]

As soon as an unexpected car repair comes along this person would be toast. Tracking all expenses is essential to maintain a budget

[@derangedone13]

That's what the emergency fund is for.

[@mksugerman1500]

This actually makes sense but what if you are just barely squeaking by and medical bills are showing up constantly that you are having a hard time paying and can’t anticipate? You make too much money for financial assistance but not enough to be debt free.

[@CrissyLove777]

Really love this. Been sharing these videos lately with all my friends, such good information and easy to understand ❤

[@Gan2ya]

The best channel ever. Love u Chelsea!!!! U need to teach in universities as well.

[@Lau3464l]

Huh! I’ve been doing this for years and had no idea it had a name!

[@Tired_Night_Owl_in_the_Woods]

I am a lazy perfectionist who wanted to have a detailed categories on expences but never do it for long😅 I now have a wonderful app which do automatic sync and categorization😂 and I do similar budgeting system with additional limit to some spending categories where I tend to overspent a lot.

[@msevolution2317]

Thanks, I like the positive first approach

[@IncrementaTuCartera]

Oh my God! I think that I do a reverse budget ... a lot of people say that I crazy for every pay day I save and then pay de bills. And the way that I budget is priorizaing tbe savings and investments.

[@cleverpaws9035]

Not formally a reverse-budget, but I have a defined number of discretionary monthly spending.

[@marymendiola]

I think this might work for me since I’m not good at tracking expenses!

[@soy.ingrid]

Budgeting can be fun when you're crushing your goals !! :)

[@kindredkey]

I'm a zero based budget girl at heart * cough * nerd * cough * I like the idea of being cognizant of where your money is going even if you're prioritizing your financial goals in this way... BUT I could see how someone else could see that as stressful or pressure. I was a little concerned with this budgeting style until you said have a separate account for reoccurring bills how is 1500 sq ft small for a single person with no kids? Maybe your space needs a re-shuffle + purging?

[@nereidatabora5438]

I do this , but I didn't know it had a name. I just made it up for myself. 😊

[@zoerly]

I absolutely love this concept, but you have to acknowledge that living off of $4000 a month is almost not doable nowadays factoring rent, and food can take quite a bit of that chunk leaving you a zero

[@juliegolick]

Meanwhile I'm sitting here in Montreal thinking "damn, $4,000 USD a month is double my take-home pay." And I make a reasonable salary! If it weren't for the fact that I have an EXTREMELY good deal on my apartment, I'd likely need to look into some fairly extreme options, like getting a roommate or trying to find a better-paying job.

[@vulpixelful]

Depends on where you live. That's a good wage where I'm from, and no, I don't live in the middle of nowhere

[@Kealasadiva42]

That’s my dream wage atm 😂 it’s probably bad for CA or NY

[@sart1348]

I wish

[@alexisreve1]

This is why I tell people I can't move back to the US, lol. I make a little more than that working a remote US job, living in the heart of a Western European capital city, and can save/invest about half.

[@SanctifiedLady]

“ We would stick to necessities… food, shelter, 215, 000 of education and clothes’ 😅❤🎉

[@CorieCupcakes]

also, a con could be having the minimum to open/maintain accounts,transferring fees from different banks(for example i paid $40 out of the savings i needed transferred from an out of state bank to my hometown bank)

[@lucialaluce2221]

I work out all the things I need to pay for (rent and bills) and pay them first… I do those things as cheaply as I can, cheap phone, small car etc. Then I pay debt, save a little and have spending money from what’s left. And I try not to overspend all the time… If I payed myself first it would be backwards logic, pay the rent first. And who earns £4k a month? I don’t know anyone who earns that much I have friends in high and low places. TFD is your advice realistic?

[@cornellcornell1]

This isn’t the UK genius. $4k is not that high in the US, especially not in major cities.

[@prettyproblem16]

Thank you Chelsea and Cindy great video!

[@RodeoDogLover]

Love this! Thank you for the great strategies. ❤

[@bkucenski]

The only thing I track is my bills. Things I have to pay or I get in trouble. Secondary is subscriptions. Things I pay periodically but that I could cancel at any time. Subtract your income from that. That is the money you can actually decide what to do with every month. The rest is already spent. Ally allows unlimited savings and checking accounts. They also let you label money inside savings accounts. And then yep, once you have enough to pay your bills and put as much into savings as you wanted, you can spend the rest on whatever. And yes, definitely get a second checking account. My primary checking account handles income and bills. I use the secondary account for my daily driver. Having your emergency fund next to your bill pay account. I always have $1000 in a savings account. So if I go over a bit in a month from things that came up, I can move money quickly and not get dinged when a bill gets paid. That emergency account gets refilled first.

[@islandboy4445]

It should not have to be this complicated to exist. Don't get me wrong, everything you said is a good strategy, I'm not bashing that. It's just rediculous when our basic needs are to eat, poop, and have shelter. Humans are the only organisms that not only have to pay to exist but also have to make it as complicated as possible. 😮‍💨

[@bkucenski]

@@islandboy4445 Yep. The most difficult thing to acquire is affordable housing. Banks don't like to make loans below about $150K. And good luck noping out of it, getting a $20 tent and some basic supplies and just sleeping in a publicly owned space. Even if you buy your own cheap piece of land, living on it is heavily restricted. It should not be hard to buy an acre of land and just let as many people camp for free as can fit. And then have supplies periodically delivered.

[@thatjillgirl]

@@islandboy4445 I mean you don't HAVE to pay for any of those things. It just tends to be a more comfortable life if you do. But hey, you can always run away and become a hermit in the woods. Most of us just want a little more than to eat, poop, and have shelter.

[@islandboy4445]

@@thatjillgirl you're kinda making my point.

[@thatjillgirl]

@@islandboy4445 I'm just saying, if you want to go live in a tent somewhere, nothing is stopping you. But most people want more than that. It's not the basic existence that costs a lot (barring medical needs, of course). I could slash my budget by more than half if I were just paying for basic needs only. Most people could.

[@AR-md1zq]

These were great tips! I think this method may work for me. I’ve never been good at budgeting

[@classical421]

This is the best method for me!

[@lavayuki]

Wow that is a lot of debt, that is amazing how you paid it off

[@narlyenatvanya]

Since I have a variable income month-to-month, I find budgeting really tricky. Maybe this is a better way to try it? Also, is it normal for most people's paycheck to go directly to their checking accounts? I've always sent my paycheck directly to my savings account and then transferred some to checking for however much I might need. I just always hear finance people talking about "need to make sure you put money to your savings account when you get paid" and have always been amazed that's not where people send their paychecks automatically.

[@Natalie_11188]

I think most ppl do it the other way. Or x% directly to checking and y% directly to savings.

[@natashadavies9569]

Mine goes into a slush account which is easy access and has a card attached but then filters through into the one I actually use as my current account. The slush account means I can set hardline goals without too much worry in case I have larger requirements some month. When the current account gets fat I move it back into the slush and when the slush gets fat some of the contents moves into higher return accounts

[@megalodon1726]

When you have very variable income, the key to budgeting is to make sure you have enough money in your checking account at the beginning of the month to fund all your expected upcoming expenses and savings/investment goals for the whole month. This way you're basing your budget on the known money you already have, not the unknown income you're going to receive. If you end up with more income than usual for the month, you can increase the next month's budget, or put the extra money into savings/investments. If you have less income than usual for the month, you decrease the next month's budget and/or pull money from savings to add towards the next month. But the first step is getting at least one month of expenses into your bank account. If you don't have that, you have to do whatever it takes to build up that money, whether it is selling some things, working an extra job, or living on barebones with no entertainment, no restaurants, no shopping except groceries.

[@narlyenatvanya]

@@megalodon1726 Thanks for this tip! I didn't think to budget based on what I have from the previous month but it makes so much sense for a variable income. Appreciate it!

[@jae-annedanae4512]

Chelsea the BODY your hair has had recently is through the roof 😍

[@MariaEspinal-pg4pn]

I pay myself 45 dollars for emergency funds, 100 dollars for travel funds, and 100 dollars for fun money every week, the rest goes to bills.

[@backcountyrpilot]

The book The Richest Man In Babylon costs $9.95 and takes 3 hours to read. It teaches the principal of “Paying Yourself First” by investing THE FIRST 10% of every paycheck. I read RMIB at 24. By 31 I was investing 35% and living on the balance. I never inherited any money and never borrowed money from a relative or for a depreciating non-business asset. At 46, I retired comfortably and began living on 40% investment income. At 58, I divorced and gave away HALF. 😳

[@hassiearaya8024]

I loved this method thanks

[@Namine_025]

Ecuadorian representation. I appreciate it.

[@ambotngababoy]

i hope this reach to more ppl esp in usa

[@kacheek9101]

haha Cool to hear I do actually have a 'budget' since I've been doing this for years

[@ryanfoxx3142]

i do this but instead of outsourcing another checking account for bills. Instead, i did a high interest savings account.

[@QoraxAudio]

My main takeaway from this is: you can't save money you don't earn, so start with earning more first.

[@leonoradelcarmen2902]

Thank you very much

[@pEAcEgrL8]

This sounds great!

[@arlettezambrano3894]

I have a question....how does this work on a weekly pay and having irregular income? My husband gets paid weekly and his checks arent always the same.

[@j.kaimori3848]

Some banks allow percentage transfer which might help.

[@amg7865]

Curious how credit cards fit into this? I usually use my credit card for a blend of bills/discretionary spending ex: car payment, groceries, gas, entertainment, pet food…etc. I pay that off with one specific checking account, & have a separate savings account that I generally don’t use haha any suggestions or words of advice?

[@amg7865]

I also find it incredibly difficult to budget because I don’t have steady income month to month…I have a part time job that basically guarantees 1/3 of my living expenses, but the other 2/3 is up to me to figure out. So far so good, but some months I make a couple hundred more than my bills & some months I’m in the red…

[@georgehowelliii5666]

Hair Game still strong!

[@jasminl8742]

Anyone else distracted by the reflection of the light on her glasses.🙃

[@ricseeds4835]

I'm picking up on and digging the Mona Lisa Vito accent

[@PatriciaJoy]

Can you do one from someone who only makes 2000 a month?

[@GothicRockGoddess]

Yeah, this is all well and good if you have enough coming in to put aside any money at all... I wish I earned the equivalent of $4000 a month, even gross!

[@AlexGr293]

Every crash/collapse brings with it an equivalent market chance if you are very well informed and equipped. I've seen folks amass up to $800K amid crisis, and even pull it off easily in an unfavourable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich.

[@melusine826]

Eh, dont have regular csah flow i can plan with

[@tefismp89]

Honduras💙💙

[@LillyJeanne]

Really liked the concept! But aren't the numbers a bit crazy? 600+$ for Shopping, 400+$ for dining out per MONTH? That's about my budget in these categories for the YEAR. Am I so far off? Anyone relating to the numbers in the video? Now I'm actually curious to know.

[@Rikku147]

I mean, it really depends on where you live and what you spend your money on. I don't personally go out to eat as much, but lots of people go every weekend because its also how they socialize with friends. Where I spend money on concerts or hobby activities with friends to socialize, going out to eat might be where you allocate money to socialize. So that kind of factors in if you're going out once a week

[@thefinancialdiet]

Fwiw, even when I was making a *lot* less money, I would easily spend $400+ dining out - but I live in NYC and definitely prioritize restaurant spending! -Holly

[@PrincezMichelle1]

Try to make meals myself at home, but husband and I can easily spend $300+ eating out, along with $200 groceries. But I don't even spend $100 on shopping. Depends on person really

[@ricseeds4835]

Believe me, people spend $600 eating out. Those numbers are not unrealistic

[@krn2683]

The eating out is a little more pricey than I do but the shopping is just WTF?! I don't think I've spent that much in the last 10 years.

[@330DKNY]

You're never going to budget your self to wealth. You need to make more income.

[@WatermelonSugar1209]

Isn’t the same advice which Chelsea has been giving for years? Not sure what was new except for a new term- reverse budget

[@tracymeserve5627]

This does not account for credit cards! Building good credit is so important and using a checking account for everything is preventing a strong credit history.

[@EggTriangleTriangle]

And then if you address all the circadian and metabolic stuff and it doesn't work, the next stop is to see if you're sick.

[@sactopyrshep]

As I began listening, her description reminded me of dieting.

[@lindadorman2869]

Successful budgeting is all about discipline and behavioral change. Saving money for a vacation before paying your expenses is childish. Grow up and be an adult who takes responsibility for making sure your bills are paid on time in full before even considering non-essentials. Keep it simple - you don't need multiple accounts or complicated direct deposits.

[@TheHost345]

What’s the difference between having a discretionary checking acct vs using a credit card?

[@thefinancialdiet]

A checking account would act as cash, vs. putting your expenses on a credit card, which you of course would need to pay off in full every month - but you could definitely adapt Cindy's method to incorporate using a credit card for your discretionary expenses, then pay it off from your discretionary checking account! It depends on how responsible someone can be with access to credit.

[@MissKapanadze]

@@big_fishhhit depends on your priorities and responsibility. If you’re responsible to not overspend while using credit card and pay it off in full each month, then you’ll benefit from using credit cards with rewards/cash back system. However if you struggle with impulsive overspending then using credit card could put you into debt. In terms of building credit, it’s best to keep your credit spending under 10% of your credit limit. So for example, if your limit is $1000, don’t put more than $100 on the credit card. So for building credit, buying gas with credit card and paying off every month is a good strategy.

[@virginiaandersen3784]

@@big_fishhh If you limit your charges on credit cards to what you can pay off every month (ie paying your credit card in full, carrying no debt going forward -- basically have the cash on hand to pay off what you charge), then there are benefits to using credit cards: 1) it can help build or maintain your credit score (credit agencies track credit card payments in addition to other loan repayments), which allows you to get better interest rates for mortgages, etc. 2) you can have credit cards that offer rewards, such as a 1-3% cash back on purchases. There are other types of rewards, but I find cash back the easiest to use (no figuring out points/airline miles) and the most flexible as cash can pay for anything. Credit cards are basically lines of credit or short-term revolving loans, so if paid off in full, you basically can postpone payment for something for a month at no cost.

[@lionessrising]

I need a second checking account

[@QueenCloveroftheice]

I’m starting to think this channel isn’t for me. The example has them making $4000 monthly, and I only make $800 monthly… there’s no possible way I can budget that when I’m struggling just to make rent every month

[@GabrielleEarlam]

Yeah, sadly I'm getting the same impression! :(

[@babagonzales]

Term over Whole Life? 😵

[@PanaMaJwaaRd]

i dont think she realizes that most ppl are in the red every month, puttinf things om cc's monthly. What 500 for vacation? If this kind of infant advice is all it takes to create a "llc ". I'm doing one too. Step 1) don't realize everyone is in the red. Step 2) save for vacation and not pay high interest debt🤣🤣🤣🤣🤣, im done.

[@pearlivory3483]

I’m too ambitious all the time lol

[@smike6862]

Does your contents applicable for women only or for men also

[@projectverna1937]

I’m a dude and have been watching this channel since 2017

[@TiaTiaBoBia]

Low income it wont work