The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

Creating a Millionaire in Training Budget

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Budgeting
Reading Time: 5 mins read
Lynnette Khalfani-Cox
9
SHARES
148
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

You can probably rattle off what your basic necessities are: they’re expenses like housing payments, food, transportation costs, and so forth.

You may need to think a little longer, however, about the things that are important to you. For instance, let’s say education is important to you.

Then you might choose to spend a portion of your money each month or each year in the area of educational pursuits – perhaps yours or a family member’s.

Why do you think that scores of parents across this country sacrifice to be able to send their kids to private school or to the college of their children’s choice?

Don’t you think these parents could be spending their money elsewhere? Sure they could. But they don’t because they value education. And they look at the dollars they spend on tuition, books, etc., as an investment in their children’s future.

Let’s consider also the things that give you joy. In your budget, these should be things that are long-lasting and or memorable.

A lot of time experiences and events give us far more joy than material goods and products. Remember that fun family vacation or that romantic getaway you took with your sweetheart? Chances are, that travel experience from three years ago burns in your memory more than the clothes you bought on last month’s shopping spree.

Even when “things” are the source of joy, they can often be short-lived. How many times have you bought an item from a store – maybe it was a fancy dress, a new gadget, or some home furnishing – only to have the novelty of that item wear off faster than you could pay off the credit card bill for that thing?

This pattern of acquiring more and more unfulfilling stuff often starts early in life. Think of how children respond to receiving gifts. On a rare occasion, you might give a kid a toy teddy bear and he might keep it for years on end.

More often than not, however, is the case of the kid who gets 10 or 20 gifts during the December holidays. What happens? He plays with a toy for all of 15 minutes never to return to it again. I ask you: which child experienced true joy in their gift?

So when you work up your Millionaire in Training Budget, be sure to list those categories that give you joy – whether it’s travel, philanthropy, some leisure activity or hobby, or personal care treatments such as manicures and pedicures.

The idea is to list some things in your budget that you actually want to spend money on – as opposed to only having things in your budget on which you have to spend money. In my budget, for example, two of the items I include that give me joy are “vacations” and “books.” I do this because I know I love to travel. And I’m also a book junkie who enjoys reading and buying books from retailers.

When I take a summer vacation, however, I don’t just wait until July rolls around, and then whip out a credit card to pay for the trip. That’s not planning ahead. Instead, I put aside some savings each month to total the amount of money that will be required for that trip.

So if I know I want to spend, say, $1,000 on a trip that starts July 1st, and I begin saving for that trip in January, then that means I’ll have six full months to build up my vacation fund. And to accumulate the required $1,000 by July 1, I’ll have to put away roughly $167 a month to fund the trip.

This way, my spending is well thought out and I enjoy myself more while on vacation, because I don’t have to fret about a big credit card bill later.

Some of you may be saying “In my budget, after I handle my basic necessities, I don’t have enough left over to pay for things that give me joy or things that are important to me.” For the present time, don’t worry about money that’s available (or not available).

Leave those thoughts alone for now. We’ll deal with that shortly. Currently, here’s what I want you to do. Go grab a piece of paper, a notepad or notebook. (Later, you can put this on a computer spreadsheet if you like.

But for the present time, just write it down on paper). Now I want you to list your sources of income by category; and next to each source of funding, indicate how much net income (i.e. after taxes) you receive monthly from that source. If you are married, include your spouse’s income. Your page should look something like this:

Source of Funds Monthly Amount

Salary/Wages                                       $4,300

Commissions                                        $500

Bonuses                                                   $250

Total Net Income                                 $5,050

Some other sources of funds might include:

  • ·Tips
  • ·Part-time income
  • ·Self-employment income
  • ·Interest Income
  • ·Dividends
  • ·Alimony
  • ·Social Security
  • ·Pension

Of course, if you have other monies coming in, you should add to this income list whatever else is relevant and applicable for your situation. Now turn the page over and write out these three categories of expenses across the top of the page:

  • ·Necessities
  • ·Things That Give Me Joy
  • ·Important Things

Your task now is to fill out the paper by listing things that you regularly spend money on in each of those categories. You will also write down what you wish you could spend money on – if you had the money.  Write out your purchases underneath the appropriate column. Under the word “Necessities,” you will enter things such as: “Electric Bill,” “Food,” or “Mortgage.” Under the word “Joy,” you might put such items as: “Gardening Supplies” or “Movies/Entertainment”.

Underneath the column with the heading “Important Things,” you might include such entries as: “College Savings” or “Retirement Fund.” Remember: in each category – Necessities, Things That Give Me Joy, and Important Things – you should have some written entries. Write down your budget items if you actually spend money on those things, or if you just desire to spend money on those things.

Take some time to think about what fits into each category – then go ahead and write everything down right now. Don’t just keep reading: go get that paper and get to writing. I promise you this exercise will be well worth your time. Please do not skip this part thinking; “I’ll do it later.”

Remember what I said earlier about procrastination and lack of discipline being self-imposed obstacles to becoming a millionaire? OK, let’s put aside your Millionaire in Training budget for now. We’ll return to it shortly.

Excerpt from The Money Coach’s Guide To Your First Million – Now in Paperback

The Money Coach s Guide to Your First Million Lynnette Khalfani Cox 9781932450064

Tags: Millionaire in Training BudgetWealth BuildingYour First Million
Previous Post

The Couple That Sets Financial Goals Together Stay Together

Next Post

Don’t Let These Things Stop You From Becoming A Millionaire

Related Posts

mixed race senior citizens reviewing budget

Budgeting for Senior Citizens: How to Live Well on a Fixed Income

by AskTheMoneyCoach

As we age, managing finances becomes increasingly important, especially when living on a fixed income. It's crucial to budget wisely to maintain a comfortable lifestyle in your senior years. Here, we share some essential tips for senior citizens to live well within their means. Reduce Expenses One of the primary...

4 Budgeting Mistakes That Are Easy to Avoid

by Lynnette Khalfani-Cox, The Money Coach

Even though people are watching their dollars right now because of inflation, there are a host of financial budgeting mistakes you can easily avoid. Here are four budgeting blunders to sidestep anytime you’re watching your finances.

Financial Truths

7 Painful Financial Truths You Need to Accept in the Age of Coronavirus

by Guest Blogger

The COVID-19 outbreak is causing people to make tough choices regarding their finances. Are you in this boat? If so, you likely have to accept some unpopular truths to weather the storm of these uncertain times.  Here are some hard, but necessary financial truths that you need to consider as...

talk to your teens about money

How to Talk to Your Teens About Money During the COVID-19 Pandemic

by Guest Blogger

You need to talk about healthy personal finance habits with your teenagers, especially during this coronavirus pandemic. From preparing for college to managing credit cards and student loans, you want to make sure your teenager is set up for success.  Your guidance can help them avoid some of the money...

new budget COVID-19

10 New Budget Items to Add Due to COVID-19

by Lynnette Khalfani-Cox, The Money Coach

The COVID-19 pandemic is causing many of us to have to budget for things we never thought of. Here are 10 new budget items that you should plan for as you navigate this "new normal." 

prioritize your bills

How to Prioritize Your Bills During COVID-19

by Lynnette Khalfani-Cox, The Money Coach

To help you make some difficult financial decisions during this COVID-19 emergency, here are some tips on how to effectively prioritize your bills. 

Saving - Lynnette Khalfani-Cox

COVID-19: Why Saving Should Be Your Top Priority

by Lynnette Khalfani-Cox, The Money Coach

Lynnette Khalfani-Cox, The Money Coach explains why despite the impact of COVID-19 on your finances you still need to find a way to save money for future emergencies and goals. Transcript Lynnette Khalfani Cox: Saving money is definitely hard these days, but you still got to do it. Let me...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1517 shares
    Share 607 Tweet 379
  • What to Do if Your Spouse Stole Money From You

    1300 shares
    Share 520 Tweet 325
  • What to Do If You Can’t Afford to Leave Your Spouse

    1262 shares
    Share 505 Tweet 316
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1123 shares
    Share 449 Tweet 281
  • What Do All Those Strange Codes In My Credit Report Mean?

    894 shares
    Share 358 Tweet 224
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    855 shares
    Share 342 Tweet 214
  • Do This Now If Your Wages Were Not Reported

    849 shares
    Share 339 Tweet 212

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist