Greg provides five simple ways to get your budget under control, especially during times of economic uncertainty. The video emphasizes straightforward steps, acknowledging the challenges people face with personal finances.
Here’s a breakdown of the five key steps:
- Make a budget: Create a simple budget by listing all monthly expenses, starting with the largest (housing) and going down to the smallest [05:18]. Then, list all income sources. Ensure that your income exceeds your expenses, and if there’s extra, put it into an emergency fund [08:20].
- Pay off credit cards in full: Always pay your credit cards off in full each month to avoid accumulating high-interest debt [10:11].
- Get the big things right: Focus on managing significant expenses like car payments and housing costs, as these have a more substantial impact on your budget than smaller, everyday expenses [10:55].
- Pay yourself first: Set up automated investments, aiming for at least 5% of your income, to build wealth over time [12:41].
- Identify bad habits: Critically assess your spending habits and identify areas where you might be overspending, such as hobbies or collectibles [13:59].