Why More Money Won’t Fix Your Budget: Real Stories That Prove It’s Not an Income Problem

  📍 that what stood out to me as well is. This was not an income problem. No. So she had a lot of money and we see this, we, whether you make not as much money as you want to, we’ll put it that way.

Or you make a lot of money. Like she does, she had store credit cards just like the client I was just talking about. She didn’t need it. You don’t need, she didn’t not need to have those. She makes enough money. What she needed was a system that showed her Yeah. How much money she has to spend and how to spend it.

 Yeah. I remember when we were there, that was when I was like the most depressed. And I don’t wanna be, I don’t wanna be like a Debbie Downer, but that was really hard time for me. It’s when I got my most gray hair, and when I lost the most hair, just because it’s a lot,

 But anyways, we just wanna say that, look, sometimes paying off debt is not your goal.

That is okay.

 We were like, Hey, let’s party time with all this money. ’cause we don’t usually have that.  what’s the most important thing to do right now? That’s going to be the first domino that will help you get to all of your other goals.

 Yes. It’s nice to know I have money to put my daughter in daycare next month. Yeah. But also there is something very human about knowing that’s one less, one thing, one monkey off my bat. One chain that’s been broken loose, like just, I’m done with that debt

 today? We’re bringing your real life stories and lessons from our private coaching sessions. If our clients are dealing with it, chances are you are too. So we’re breaking it down to help you avoid the same mistakes, feel less alone, and walk away with some quick wins for your budget.

  so my client, oh you’re gonna love this. So they live in Oklahoma and they have a couple properties and whatnot and we’ve been working together and you know their budget, the way that they budget it does.

They do they’re very conservative, I’ll put it that way. So when they got a refund from their escrow, it was a big deal. We were like, Hey, let’s party time with all this money. ’cause we don’t usually have that. So when we talked about, I was like okay, let’s think about what we want and thank you for not spinning it before we got onto the call.

That has happened too. Okay. So let’s talk about, what did you guys talk about that you guys wanna do with it and all the verbal vomit. We obviously need chickens. Cattle, she wants zebras. We’ll talk about that later and maybe not. They have a new grandbaby coming on, coming soon.

And then they also have, so right before we started coaching, they moved into a new house and on a new property, the old house is still hanging out there. So that had to be dealt with at some point. Because it needs to be repaired before they can sell it. And all of these like it was like the mix of eyeball emoji or love heart emoji and dollars on Yeah.

In your eyes emoji like money and love and exciting things. Alright, so I just want to tell you how we decided so you can think about this for your own budget. I, she wants chickens fine. She wants cattle and like they’re gonna sell the cattle. They’re gonna let it graze on their land and let it and sell it by the end of the year, whatever.

I don’t know how that all works, but I said, okay, what’s the most important thing to do right now? That’s going to be the first domino that will help you get to all of your other goals. And for them getting this, putting this money toward fixing the house so that they can get that sold, then they will get money back.

So then the money back, then we can do the chickens, the cattle, whatever. But if we do the chickens and cattle right now, we won’t be able to do that. And that will still be a money sink. Until some other magical time when we get money. And I don’t think the cattle are gonna be super profitable.

It’s just more of it’s like a long term. Yeah. So let’s do the one and then we can do the others. But if we do the others first, then we won’t be able to do the other one. And that’s still gonna be hanging around. So that was how we got with that. And then as far as the pool, they have to get the pool ready.

And I just wanted to throw this out for you. New house or old house? In their new house. They have to get the pool set up or whatever for the season. And so we put that in the budget, but now it will be in the, we’ll think about that long term as a home expense. We’re gonna put that in the savings bucket for the home to see whatever needs to be done.

And then lastly we talked about it and she’s, she has a grand baby and she’s getting a new grand baby. And she’s my kid’s budget is also needs to. Be buffered or be bumped up so I can spoil my grand babies too. Yeah. And I was like, okay, so we just put that, we added that to her kids’ budget.

So anyway, I just, that’s how we prioritize everything. And yeah. Oh, that’s fun. So when you’re stuck between that two house situation, like that can be so hard. Yeah. And the fastest, like the faster you can get out of that old house. Oh my gosh. That’s just gonna relieve so much pressure.

Yeah. I remember when we were there, that was when I was like the most depressed. And I don’t wanna be, I don’t wanna be like a Debbie Downer, but that was really hard time for me. It’s when I got my most gray hair, and when I lost the most hair, just because it’s a lot, and I didn’t have a coach at that time.

This was before our business even was a thing. And I would just remember, gosh, if I had somebody like us there to help me and walk me through this is what’s most important. This is what you should do. Yeah. This is what this looks like. That would’ve been such a game changer for me. But. We did it by ourselves and it’s very sad.

Yes. But now you’re here helping other people from what you learned. Yes. Gosh. Yes. And I, I, people ask me, oh my gosh, this is so great. You’re a mortgage free. Yes, it’s fine. I would’ve done it differently back then had I known like how stressful that moment was gonna be. But it’s fine. I’m loving that she is gonna get her, because I, if I remember Shana, that is her dream property, right?

Yeah. So that’s gonna be so fun to get everything all set up after she’s got the money from and she’s she is so funny. Like she needs especially if she gets the cattle, she needs to get her own TV show. Oh. ’cause she’s what about zebras? And he, I think he was like. Absolutely not.

 Hey guys. In case we haven’t met yet, I’m Shana.

And I’m Vanessa. We’re the budget besties. We’re best friends and master financial coaches and we love talking about the B word. We help women who make good money but have nothing to show for it. Finally, set up a budget system that fits their bougie lifestyle. If you’re liking this so far, hit the subscribe button and stick around.

Your budget is about to get a major glow up.  

And she’s but they don’t have to come in the house or, and a cow like then cows, like she’s got big dreams, big plans. Okay, so let’s just get some things cleaned up so you could open your zoo apparently, whatever farm. Love that. Yeah. Okay. So I have a client, a new client, actually, we keep saying that, but that is very true.

She is a. Tattoo artist. And she has a sweet little baby girl that just had a, her first birthday. Girl, let me tell you, this girl’s birthday was bougie than probably my, our 40th. My 40th birthday’s gonna be, I don’t know. I think we’re gonna Bali. I think so. But maybe’s pretty bougie. I hope it still happens.

I’m just saying what this girl’s first hero’s birthday was on it. I was really excited for her, but I wanna hear about it now. You’ve got us all peaked. She just went all out. She got the balloon, she rented the place, she got the catering. Like it was a big deal. And I love that. The mom, she works really hard.

She makes really good money. And she’s able to afford it. So she did, and she was getting a tax return back from her business and it was like $7,500 and she’s look, I can use all of this and pay for daycare basically for the whole year. Or not for the year, excuse me, for the next month.

’cause her daycare is like $6,000 a month. ’cause she has a, is it bougie? Yes. Sp, which is fine. Love it. They take really good care. Like the girl gets manicures at one. No, I’m just kidding. It might just be, this might happen. We wouldn’t know. I know. Yeah. Nowadays, I don’t know what daycare or having a nanny would cost, but or she could take that money and pay off an entire debt and get back $200 a month at her budget.

And so she was really good. She goes, look, I want to do whatever you tell me to do, whatever you tell me to do with my money. So we looked at a bunch of different ways, like we could use that money to put it in a savings bucket for this. We could use that money. Towards she’s got something else coming up in her business that she needed to pay for or we could use it and pay off debt and this is what it’s gonna get.

You having that $200 extra in a month that you no longer have to pay. That’s the relief that you’re gonna feel. And so that’s what she did. She took it, chunked it all instead of breaking it. And so what we didn’t do, we didn’t do the debt that debt snowball method here. We did not put it on her smallest debt.

We just paid off an entire debt, like the whole thing. Yeah. Bigger one with Yeah. And it was her highest interest debt. Yeah. So it just made a lot of sense. Yeah. And I think there’s also something maybe not tangible there. So yes, it’s good to get the $200 back in your month, but also knowing that you’re done with that, like that’s 7,500.

That was just costing you so much interest every month. Like just the relief of knowing that. Yes. It’s nice to know I have money to put my daughter in daycare next month. Yeah. But also there is something very human about knowing that’s one less, one thing, one monkey off my bat. One chain that’s been broken loose, like just, I’m done with that debt and.

Awesome. That it’s one of her higher debts. So she could be done with that. And that I bet that just feels, it just feels so different and I’m really excited for her. And she couldn’t wait to close it too. She’s I’m gonna pay it off and I’m gonna close it. I’m gonna be done.

Bye. Yeah. Need you anymore. She was so excited. Yeah. One of the things it, right now we’re talking about some people who are getting tax returns back. Whether it’s a bonus, a commission check, tax return, whatever it is, we encourage you guys to use it smartly as a tool and not as a treat.

’cause a lot of people will get those, that money and they’ll just blow it and then before they know it, it’s gone. They don’t even know what they spend it on because they didn’t have a plan. So just be really smart when things like that come in, as a, just use this as an example of how much better it can serve you.

Yeah. And it doesn’t, that does not mean you can’t do something fun with it. A lot of times we break it up and put some, do something responsible, do have a little fun, whatever. But the point is just to have a plan. Yeah. That’s the most important part. Okay. So I have this, a client, Vanessa, I know you, it’s like she said it’s not that I don’t have money.

I just don’t know. Just don’t know. I just don’t know if I have money, right? And I’ll tell you why. I will tell you why she didn’t know. Okay. We have the Bills account, so she obviously listened to our podcast or listened to our training wherever she came from. And she has a Bills account, and then she has a big Bills account, and then she has a spending account, and then she has an account where her child support comes in.

And then she has a account where her side hustle money comes in. And then she, one of those was in a Chime account, which I have recently found out is where you can borrow money from. Like you would, the reason it was set up there is if she had a direct deposit to it, it would. Believed that she was gonna get that and she could borrow ahead of time.

Oh no. So it’s a payday loan, like a payday loan, but to yourself. I don’t even know if it is a payday loan. But so here, for example, when we were doing her next budget, I was like, okay, I was expecting to have that whole, I think it was $860. We were gonna get 630. ’cause she’d already spent some of it because I was like, okay, first of all, as we teach you, we are going to put all income into one Bills account.

Second of all, we’re never gonna do that again. We’re just gonna close that account right up. You are never gonna have to. And that, so that really is the lesson. She was never gonna have to do that again. If you just put all of your money in one account and all of your bills so you can see everything clearly, and then we’re gonna transfer money and spending so that, that’s where you live.

You know how much money you always have to spend for gas, groceries, personal, whatever. You can see it. You don’t have to think, can I? Will I, should I it’s going to make it much clear and you don’t have to be messy, scattered thousands of accounts. It’s almost sometimes feels like we know that you’re trying, like you’re, you feel like you’re trying to do the right thing.

Yeah. But it’s, you’re self, you’re sabotaging yourself by having it be so confusing, and I wanna know what that that stop is for people. By doing for doing that, because a lot of people get so scared to do have that step. And then I wanna know what that is what that feeling is because like I have a, I had a client who had all these other accounts.

So it’s like she heard what we said and then tried to do it better. Yeah. Yeah. But it was worse. Yeah. It ended up being worse. But there’s like this I don’t know, scarcity. I don’t even know. It’s not scarcity. There’s something there that like, pauses them from wanting to have everything come out of one account or have everything in one place where they feel like they have to have their HR department like, put money here and put money there and put it here and put it there, and then they don’t know where it is and why it’s there, what it’s for.

So it’s just interesting to me. Like you said, every dollar has a job. Give it a home and make a plan for it, and then it’s all, it makes it all better. It does do that. That’s what it does. 📍

 All right. So my one of my sweet clients, she’s actually about to graduate here soon. She’s so awesome.

Her goal is not to get outta debt. And it is funny ’cause at our last session I asked her, we made a plan to play it off, and then she came to the last session and she was like, I don’t wanna do that.

And I’m like, okay. So I said, walk me through that. And so she just said, look, I feel so much better having that $34,000 in my bank account than if it wasn’t there. Now mind you, she has other money. Which is fine, but she You’re dealing with it, right? I’m dealing with it. She has, she makes really good money.

She has an amazing budget that allows her to do so much stuff. She, had not only a year-end bonus recently come in, that is more money than some people make in a year. She also has quarterly bonuses. It’s, she’s very blessed and she knows that, and she’s very thankful. But having that money in her account meant more to her than paying off debt.

And I specifically asked her, because we had been talking about this plan for the last couple months you are gonna pay off debt. And then she said she came back and she goes, no, I don’t think I’m gonna do that. And so then I asked her, I said, okay, I just for clarity purposes for your coach, I wanna know.

Yeah, tell me more. Do you wanna get outta debt or no? Yeah. I need to know what my next steps are for you. And she’s no, I’m perfectly fine having our student loans and having that last car payment and they have their land loan because they’re building their dream house. And she said that is a manageable amount of debt.

Where they, when they, she first came to me, she had probably. Probably 15 store credit cards on top of all the other stuff. I love that. So we cleaned all of that up. Yeah. So now she has a lot of extra money to be able to start her savings buckets and do a bunch of stuff with it. But anyways, we just wanna say that, look, sometimes paying off debt is not your goal.

That is okay. But we just wanna make sure that you still have a plan for your money, right? Yeah, I think that I totally get that. Like she wanted to see that comment in the bank account. Like our friend, our, one of our first clients said, and that feels good to her. She knows she’s gonna make enough money to make these payments.

She just wants to see bulk of cash build up. That’s where she’s at. And I think that a lot of people, a lot of you might feel that way. So it’s good to, to hear that. I will say that what stood out to me as well is. This was not an income problem. No. So she had a lot of money and we see this, we, whether you make not a, not that not as much money as you want to, we’ll put it that way.

Or you make a lot of money. Like she does, she had store credit cards just like the client I was just talking about. She didn’t need it. You don’t need, she didn’t not need to have those. She makes enough money. What she needed was a system that showed her Yeah. How much money she has to spend and how to spend it.

Without having to result to these different methods that they, that you think you’re being savvy or you, they’re talking you into it and you just have to learn to say no. And I have a different plan, a different system. So I’m glad that she got that cleaned up and she’s at a place where they feel good about it. And I just love how she was able to make that decision. Not necessarily about feeling vulnerable, but it was like out of. Out of confidence. Yeah. Yeah. It was outta confidence and not fear. Like knowing what she wanted for herself. Yes. Yeah. And knowing that, and by us making her budget, she was able to go, okay, I don’t actually have to pay off this debt ’cause I have so much extra to be able to do X, Y, and z.

I don’t mind, working it slowly because she really, I actually really wants to pay off her land loan so that way when she goes to build her house, she builds the house and she can maybe have cash for it and she wants to pay off the house in four years after she builds it. Yeah. And it’s a, decent house.

All right. So we hope that you guys have loved those lessons. We hope you got something out of it. And we’ll see you next time.