Budgeting Money Green Flags 🤑 (do these things)

Read Time: 3 minutes

👋 Hey guys - Noah here,

🤑 Budgeting Money Green Flags

In my poll last week, LOADS of you voted on wanting more content on budgeting + investing…

So today I want to share some lessons I have learned on budgeting.

If you do any of these things, they’re a BIG green flag! ❇️

❇️ Paying Yourself LAST 

What do you mean Noah? How does that work?

In short, the best way to get on top of saving, investing and allocating your money to the right places is to invest, save and donate your money before seeing that money in your bank.

Here’s what I recommend you do, as soon as you get paid:

• Take a percentage of that money and invest it - link to start investing here

• Take a percentage of that money and save it - use it to build an emergency fund in a high-yield savings account

• Take a percentage of that money and donate it to charity

Once you have paid for these essentials (because if you want to get ahead - this is what they are), you can then pay yourself the rest of this money!

You won’t have the pressure of having to worry about leaving enough money at the end of the month to invest or giveaway. That can all be sorted as soon as you are paid. You can set up direct debits for the day you are paid to ensure these things are automatic too 👀

❇️ Using the 50/30/20 rule

This rule is a straightforward yet powerful method to manage your finances, ensuring a healthy mix of meeting needs, saving, and enjoying life.

Here’s my approach to adopting the 50/20/30 rule for a great financial plan:

• 50% to Essentials: Put half of your net income into life’s essentials. This covers rent or mortgage, utilities, groceries, and transportation. It’s about fulfilling those critical needs that keep your life running smoothly.

• 20% to Savings: Next, take 20% of your income for savings or investments. This includes contributions to your emergency fund, retirement accounts, or other financial goals. Think of this as your financial security net, building a buffer for the future.

• 30% to Personal Spending: The remaining 30% is for your wants, the personal spending that enhances your life. Whether it’s hobbies, dining out, or a streaming service subscription, this portion makes room for enjoyment and leisure without financial guilt.

By structuring your finances around the 50/20/30 rule, you create a budget that supports your immediate needs, secures your future, and allows for life’s pleasures.

❇️ Spending Money On Things You Don’t Need

Yep… that’s right!

Sometimes it’s okay to buy things you don’t need but want.

After all, your money is your money - you earned it. You deserve to treat yourself.

If you follow the two previous rules, you should have no problem splurging on things that are important to you - you know you can afford them!

So if having the latest iPhone genuinely makes you happy, and you can buy it - go for it 🙂

For things that matter to you, go big. After all, there will also be things that probably won’t matter as much to you: these are areas you can cut back on.

As for me, I don’t care as much about the brand of clothes I wear, so I buy clothes cheaper in the charity shop. It gives me more money to spend on experiences, like seeing shows with my Girlfriend!

Bonus: you can budget with my free budget tracker

1. You can download it via Google drive here
2. Access my new 3 page instructions PDF here

💸 How to save $100s on your next holiday!

I LOVE to travel, but if you are not careful, it can get expensive quickly!

So here are my top three travel hacks to save money:

📍 Reverse Google Image Search AirBnbs

Me and my GF LOVE using Airbnb, but did you know there is a 30-second hack to save $100s on every Airbnb?

• Simply by reverse Google image searching the photos of the Airbnb you are about to book, you can save $100s.

• When you do this, Google will show different sites that the same holiday home is also listed on. Sites like Booking.com, or the owner’s website.

• These sites often charge $100s less, because they avoid the Airbnb fees. 💪

💳 Travel With The Right Card

Fees are annoying, but they are very easily avoidable.

• When travelling research which debit/ credit card has zero fees. Unfortunately, many high street banks charge 1-2% fees on each transaction.

• Get cash out at home at your local bank. Converting cash in touristy destinations or at the airport is a big no - their fees are CRAZY.

• Booking your trips with many credit cards will give you extra protection on your purchase. This means that if your holiday gets cancelled, the credit card company will ensure you get refunded.

✈️ Travel At The Right Time

• You can save so much money by choosing the right date to travel (i.e., during School holiday times)!

• So take time off just before the kids’ holidays start, and you’ll end up saving tons - plus have a more peaceful getaway 😅

• Center Parcs charges almost double their prices during the School Holidays + weekends!

👀 Things I’m Liking Right Now:

Snoop - a free money management app📗

• This app automatically sorts through your bank accounts

• You can then use it to see which ones to cancel

• It uses AI to show where you can save more money
  

  check it out here!
  

  

  If you use the link, I may receive some commission :)

Important Links 🔗

1. If you haven’t yet, join the “Teaching What School Doesn’t” Skool community. It’s free and has tons of extra value on managing, investing and making money. 💸

2. LOADS of you have been using my free Budget Calculator.

3. I reply to every email, so send any questions through! I’d love to help you.

See you next time!

Disclaimer: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.