The 15 Minute Budget

I’ve tried so many different budgets and ways of budgeting over the years, none of which work. Eventually with I created what I can The 15 Minute Budget as an easy way to create a budget and automate your finances and your savings.

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Free 15 Minute Budget Template

0:00 – Introduction
0:34 – What is The 15 Minute Budget
3:48 – Bank accounts you need to make this work
5:04 – Going through the 15 Minute Budget Template
12:28 – Setting up automations
15:43 – Managing your budget weekly
16:41 – Setting up automatic transfers
18:44 – What do you do when a bill is due
20:11 – How to use this budget to pay off debt
21:24 – Why this works so well for me
22:31 – The 15 Minute Budget in a Nutshell

Transcription:

Ryan 0:00
I have tried so many different budgets and way of budgeting in the past, it’s not funny at all, without much success either tried everything from putting cash in envelopes to using iPhone apps to daily tracking my money to give myself a daily amount, I tried so many different things. And all of them just I really struggled and failed to the point where I just didn’t run a budget. And it wasn’t until I started getting serious about my finances, that I decided I need to work out a way that works for me. And with the help of the Barefoot investor, in mixing some of my own ideas, I created what I call the 15 minute budget. Now, this is a budgeting technique where you can sit down and in a matter of about 15 minutes, you can kind of do a reset of your life, and quickly see how you’re going in terms of income, what your regular expenses are, how much you know, you’re paying in Internet and Phone and rent and things like that. And then you can look at, okay, how much money do I have leftover for spending each week, and you can give yourself a regular amount of spending money. And this is your focus. So the 15 minute budget is a sit down so you can look at this. But then you can also automate all of this sort of stuff. So your income comes in, then you automatically organize your regular expenses to be paid. So things like your rent, things like insurances phone bill, even bigger things that you have to pay for annually, like your car registration, these aren’t going to be a shock to you anymore, because you’re going to automate saving for those so that when your car radio comes up, and you’ve got to pay one or $2,000 for that, that money is already put aside, when your gas bill or your electricity comes up every quarter, you’re gonna have money put aside for that. So we’re going to automate everything. And then we’re also going to give ourselves a set amount of money each week to live off. Well, you can do fortnightly or monthly if you prefer, but we’re going to give ourselves a set amount of money each week to live off. That’s our spending or our living money. And that’s where our focus goes. So it’s a sit down, it’s a let’s get clear bird’s eye view of where I’m at. Let’s then go ahead and organize and automate everything. And then all I have to focus on is my spending money each week. So my regular expenses, all paid for my debt reduction, all paid for my saving for my house deposit, all automatically paid for this will do everything automatically. And all I have to focus on is each week, I’ve got a set amount of money, let’s say I’ve got $400 per week to spend. However, I like, okay, I can spend that on petrol, I

can spend that on going out, I can spend that on exciting things for my kids, I can spend that on school fees or shoes for everyone that week, how I spend this money per week is up to me. So this budget, I find within 15 minutes gives me complete clarity over my situation and where I’m at and what money I have to work with. But then this technique of allocating myself spending money, and automating everything else gives me flexibility in my life, I’ve got certainty that my debts are being paid, that I’m saving money, that I’m paying my bills, that’s also that’s all happening. But then I’ve got flexibility in my life on what I want to spend my money on, we’re now going to go back inside, I’m in the van at the moment, we’re going to go back inside and jump on the computer, because I’ve created a template. And we’re going to do the overview. First we’re gonna do the bird’s eye view, and look at our income, we’re going to look at our expenses. And then we’re going to go ahead and set this up. As I go ahead and head back to the house. Before we jump on the computer. I will say that in order to make this work, I had two bank accounts each with cards attached to them. So these are bank accounts I can use to spend money on things, they’ve got Visa Debit. So I’ve got two cards, and I got three online savers to make this work. Now I personally use IMG because they’re an online bank, they’ve got no fees, and actually have a special offer going on at the moment. Whereas if you sign up, and there’s a couple of things you have to do, like deposit some money and use the card a couple of times, if you sign up before the 30th of June, you can actually get $100 for free into your account. So that’s a pretty good sign on bonus. And I think I get some money too if you sign up through my link, but I’m not exactly sure. So I might be an affiliate link. But if you go to onproperty. com, au forward slash i n g, I’ll link up to it down below. You can see that offer and you can get access to that. If you’re watching this after the 30th of June. They do run offers from time to time so that link will still work. Even if you don’t get an offer. their bank accounts are absolutely free. They got good interest rates on their online savers. And I personally just use them and love them as a bank. So go to onproperty dot com.au forward slash IMG to

check that out. Let’s go ahead and jump on the computer. Okay, so here we are at the 15 minute budget template. As you can see, it’s just one page, if I go ahead and zoom out a bit, you can see that it’s just a couple of boxes that you need to fill in, it’s really not very hard. And if you do want to get access to this template, then just go ahead and go to onproperty.com.au forward slash budget, and you’ll be able to get it through your email address there. So the 15 minute budget, how are we going to do this? Well, the first thing that we want to do is go through and put in our income. Now this could be income from a job could be positive cash flow from a property could be Centrelink, or government support. Or maybe you got some dividends coming through shares, whatever it is put it in here, and you want to put in after tax. So what are you getting weekly, monthly, or annually after tax. So let’s just assume we’re earning about $100,000 per year, maybe as a couple, maybe as a single person, and then we’re paying tax on that. So about $75,000 per year in terms of income. Now for weekly, I’m just going to take the annual divided by 52. Because it doesn’t do that for you. And then we have our total, weekly, monthly and annual income. So you might get paid weekly, you might get paid monthly, you probably don’t get paid annually. But maybe monthly, but this allows you to work out on a weekly or monthly basis. And you can go through and do that. Next we want to go through is the bills section down here. Okay, I’ve got to pay yourself first and discretionary spending at the top because they’re probably the most important, but really we need to go through the bills next. So our mortgage, how much are we paying on our rent or mortgage? Maybe we’re paying 400 a week? How much are we paying on electricity? Okay, maybe 2000 a year, gas don’t have gas at the moment, internet $100 a month phone $100 a month, car rojo maybe $1,000 a year insurance $1,000 a year. What rates Do you have to pay for water 500 a year council rates if you own a property, car servicing, put that at 500 a year daycare or school. So school and school uniforms. It’s probably a couple of grand a year for me private healthcare 3000 a year debt payments you would put in here as well. These are the minimum repayments that you have to pay on your debt. So not necessarily paying off debt. But what are you obligated to pay in order to pay it off in the loan term. And then you can add in some miscellaneous stuff in there as well. So let’s go ahead and for the weekly ones, we’ll divide the annual by 52, just so we can go ahead and get a good weekly number there. Okay, so now we’ve got our regular bills in terms of weekly in terms of monthly and in terms of annually. And in our summary. Over here, we can see that our income minus our bills, we still have money left over. Now, we haven’t taken into account any big fun stuff, we also haven’t taken into account our discretionary spending only changes to living money instead, I think that’s a better term. So we haven’t take into account our living money. So these are things like petrol, groceries, eating out, going to the movies, entertainment, buying clothes, all of this sort of stuff. So these are things that each week, or each fortnight or each month, you get to choose what you spend money on one week, you might spend more money on clothes, and then you’re not going to spend money on food or money. One way you might spend more money on food and you can’t buy any new clothes this week. So let’s say we’ve got children, and so weekly living money at the moment is $500 per week, in order to pay for groceries, maybe more, maybe less. This is just an example. Okay, so this is money each and every week, we’re gonna get $500. And we’ve got to learn to live off that. We can see in the summary over here that we’re still got $300 a week left, or about $15,000 per year, left over. Now down here, we can see the big fun stuff. Maybe you want to go on holiday, maybe you want to get investment property, your car, I wrote movies down there. I have had people in my life who have done plastic surgery in order to do that. Let’s change that to plastic surgery. Okay, maybe there’s some big fun stuff you want to do this year, let’s let’s say we want to go on a holiday. We’re just gonna go in the same state. We’re not going overseas this year because of everything that’s going to happen. But let’s say we’re going to spend $5,000 this year on a holiday. All right, so now we’ve got $200 a week left or 10,000 a year. So pay So first, this is where we pay off our debts. This is where we save for our house deposit, I’m going to go ahead and put that at $200 per week to pay myself first. So as you can see, in our summary, now, we’re basically at even $7.69 or $400 per year, that’ll disappear for some expense. But we’ve organized it here. But we can obviously change all of these things, let’s say holiday, we don’t want to do any more. Instead, we actually want to spend $300 per week, so you don’t have as many expenses. And we want to go ahead and save $500 per week. So that was saving $26,000 this year, or paying off that debt. So you can go ahead and mix and match this and change things around and make it to suit you. Down here is the debt section. And this is just to write down what debts that you have. So maybe you’ve got a $2,000 credit card debt at 13% per year. So your annual interest there. Now in your debt payments, we should have already included this. Let’s say we’ve also got a car loan of $10,000. And we’re paying 10% on that. This is our annual interest, this isn’t going to add over here our debt payments are Carlo, we might be paying off over five years credit card, we’ve got minimum repayments, let’s say our debt payments, $100 per week, they’re okay in order to pay off our loans. five grand a year, we’re going to be paying that much. Let’s download it. Let’s make it 75. Okay, but now we can see that in our summary, we’ve gone into the negative. So let’s do a little bit of moving around here. $150 pay yourself first. Okay, let’s live off 450 a week, and we’re going to save 180. So we’ve adjusted our savings down a little bit. Okay, not for 30 per week and 200 savings. As you can see, you can go ahead and play around with this. And it’s going to change your summary. So this is the broad spectrum of understanding, okay, where, how much money am I getting coming in? And where is my money going out. And these four things. So we’ve got pay yourself first living money, bills, and big fun stuff. Down here, those four things are going to be bank accounts that we have. And now I’m going to explain how we set up we’ve done our 15 minute budget, how do we set up these automations. So if we have a look here, this is how I do it, I got the 15 minute budget. So here I’ve got two bank accounts that actually have cards attached to them once called this the pot. And I call this the pot because it’s the mixing money, it’s where all our income goes in, it’s where all our automations come out. And then we’ve got our spending account down here. And this is what we actually live off. So remember, in the budget, we had the living money here, and how much we get each week, that’s this spending account here. Okay. And then we’ve got three online savings accounts, pay myself first bills and big stuff, you’ll notice that they match up with pay yourself first bills, and the big fun stuff here. So let’s now assume that we actually get paid weekly, so we’re getting you know, 14 $100 per week. So let’s say this is me, I’m going to draw myself

as my friends. This is me here. Okay, now my income is going to go into the pot. Okay, so this is let’s go this 1400 per week. It’s like 1440, right? Or something like that. So that’s going to go into the pot, our income from our life is going to go into the pot. Now from the pot, we’re going to set up a bunch of different automations. From the pot, we’re going to set up an automation to pay myself first. So each week I’m getting this amount of money, let’s say I get paid on Monday. Okay, then I’m going to start these automations for Tuesday, because I know that there’ll be money in my account on Tuesday. So I’m going to set up the pay myself first, which was 200 per week. I’m also going to put money on that Tuesday as well into my bills account and into my big stuff account. So we’re looking at template, we can see that with our bills. They’re costing us about $713 per week, or $37 per year. Now some of these are regular some of these are rent, which I’m paying weekly. Some of these are quarterly like electricity or gas, some of monthly Internet and Phone some annual like car registration and car insurance. But we know that this is our total 713 per week. But let’s say rent and mortgage I’ve already got direct debiting from my account that’s coming out certainly 313 per week. i’m going to go ahead and move so into the bills account i’m going to move $313 and that’s going to leave $400 in the pot for rent and so my rent is going to get deducted out of that without big stuff we’re saving $96.15 per week let’s call that $97 across into my big stuffed account now i am doing this automated so monday i get paid tuesday these automations kick in another automation that kicks in is money moves from the pot to my spending account and i think we settled on on $430 per week into our spending account so what’s going to happen now right is i’m going to leave the pot at home this card this stays at home this is just my mixing pot the only card that i’m taking with me when i go out and about to go shopping is my spending card and i’ve got $430 per week and my week personally starts on tuesday so tuesday through the weekend until monday i’ve got $430 to spend so if i go out i’m using this card let’s say i spent $100 an hour no got 330 left for the week now i use img as i mentioned earlier img have a special offer here wherever you sign up you can get a free $100 reward i use them because their cards or their bank accounts actually free you don’t pay for any atms and you get good interest rates on the online savers and so i use img for my accounts and you can use that too if you want the link for that onproperty com au forward slash img if you’re interested in signing up with them so with img i’ve got these two accounts i use and then three online savers creating an accounts really easy and you can just do it online as you can see i’ve currently got my two accounts the pot and my everyday spending and then i’ve only got one online savings account called paint myself so let’s go ahead and apply for a product we’re going to apply for a i think it’s called a savings maximizer account mine they actually need me to call up but usually you can just set them up yourself but what i’m going to do now is show you how to do an automation so if we’re going into our account here let’s say money goes into the pot and each tuesday we want to pay ourselves first that $200 per week so what i’m going to do is go transfer and pay and then between my accounts and i’m going to go from the pot to pay myself first amount $200 per week i’m going to put this as pay myself

first this is my savings and then i’m going to set recurring and so recurring i’m going to put weekly starting date i’m going to select for tuesday next week and then no end date can also send me an email receipt so if it goes through successful i’ll get an email if it fails i’ll also get an email about that if i go to transfer confirm i’ve now set up a recurring transfer so setting up these recurring payments is really simple and easy to do with img or with any bank really you don’t have to do it with img it’s up to you how you go ahead and do that so you know we’ve got our automations happening on the tuesday let me just put those arrows back in paying ourselves first we got our bills we’ve got our big staff we’ve also got our spending money coming in there what happens now when a bill is actually due or our registration is actually due well what happens is over time you know each each week our bills account is growing by about $300 per week so over time this is going to actually fill up so let’s draw you know this is going to start filling up here and start filling up here you know it’s going to fill up like a cup and get bigger and bigger and bigger and we’ll start with zero then we’ll have $300 then 600 then $1,000 and so forth and so let’s say our registration is jus well our bills account probably already has money in it let’s say we’ve saved up $2,000 and registration insurances to in order to pay registration insurance we just move that money from bills back into the pot and then we use the card here in order to pay our bills well let’s say we’ve got a phone bill there’s probably you know $1,000 in the bills account phone bills $100 well we take $100 out of our bills account put it into the pot and then use the card in order to pay our bills so there’s a bit of manual movement happening there whenever a bill is due but over time this bills account filling out with money there’s big stuff account is filling out with money for your holiday the pay myself first account is filling out with savings or maybe the pay yourself first let’s say this is you and you’re actually crippled by a large mountain of debt so let’s say we got debt here and we’re under the mountain of debt let’s say we want to go ahead and pay off some of this debt here well pay myself first moving $200 per week once this builds up i can then go and move that money onto my debt now remember each week we’re automating the payment of our debt anyway so our minimum repayments are going into bills or getting direct debit out of it this is actually to reduce the size of my debt so i can you know the money is automated each tuesday $200 goes across to pay myself first maybe once a month i go in there and i go okay what am i going to do with that money i’m going to go ahead and pay off some debt or what am i gonna do with that maybe i’ll go ahead and buy some shares or whatever it is you want to do but it’s automated you’ve got the part everything kind of gets mixed in there you’re living off the spending money that’s really your only focus week in week in week out and every now and then you check in you say okay what bills do i need to pay you know what i want to do with my savings and you can just kind of check in there and see things grow and this is really cool i think it just works so well for me because my focus is here on spending i’ve made all the decisions already i did my 15 minute budget i set up my automations and now all i have to focus on is the spending and i’m saving money in the pay myself first i’m saving for my bills and saving for my holidays it’s all happening without me even trying all i’m focused on is okay this week i want to buy a new pair of shoes and that’s going to cost me $100 how am i going to fit that into my budget or this week the kids need new school uniforms or this week you know going to go to the doctor’s how’s that going to fit into my budget so

my focus is just here savings is already happening i focus on this and then what else do i focus on earning more money so i’ll put an arrow up there and i’ll put some dollar signs here my focus is on earning more money and when i earn more money then i can just put that straight into the pay myself first or maybe if i earn more money i want to spend it or i want to pay down debt that’s up to me but it frees up my mind i’m just focusing on my budget and i’m just focusing on earning more money so in a nutshell that is the 15 minute budget you sit down you look at your income you look at your regular expenses and then you set up a bunch of automations and you just live off the spending money that you give yourself and try and make more money so that you can save faster or pay off debt faster it’s a really simple budget and what i love about it is i’ll do it and then maybe time gets away from me i haven’t checked in a while or my situation has changed all i need to do is sit down and go through this template again i can just start this template again and quickly and easily work out okay what’s my situation where where am i at and then spend five minutes setting up my automations and i’m good to go so i can budget really quickly i can reset myself really quickly and it’s just a super useful tool again you can go to onproperty com au forward slash budget in order to get access to that template all go to onproperty.com.au forward slash i n g if you want to get access to this special offer if you want to start banking with them if you want to get that $100 reward there’s a few things that you need to do to get it like deposit some money open an online savings and make some img card purchases but if you do that you can get that reward and i think i get a little bit as well so go to onproperty com au forward slash img or click the link in the description down below but i hope that you’ve enjoyed this video on the 15 minute budget i wish you the absolute best in your budgeting and your financial freedom journey and until next time stay positive