The Truth About Budgeting

Alright, let's be real for a second. When most people hear the word "budget," they start rolling their eyes. But here's the thing:

"We not one person I've ever met has all their things in order, right? We're all a mess."

So if you're feeling overwhelmed, you're not alone. But that doesn't mean we can't get our finances in order. It just takes a little work and some know-how.

The Black Mammoth Approach to Budgeting

At Black Mammoth, we take a different approach to budgeting. Here's how we do it:

1. Get Organized: First things first, we need to know what's coming in and what's going out.

2. Align with Joy: We focus on what brings you joy and align your spending with that.

3. Add Fun Money: We always include a "fun money" category in our budgets.

Let's break these down.

Step 1: Get Organized

Here's a little exercise I do with my clients:

"Take the last 12 months of your bank statements, credit card statements, whatever... color coordinate every expense and every bit of income. And then you put that on a spreadsheet."

This might sound like a pain, but trust me, it's eye-opening. You'll quickly see where your money is really going.

Step 2: Align with Joy

Once you know where your money is going, ask yourself:

"What brings you joy? Truly happy. Is it traveling? Is it seeing your kids grow and play sports? What is it?"

Then, we design your budget around what makes you happy. This isn't just about cutting expenses - it's about making sure your money is working for you.

Step 3: Add Fun Money

Here's where we do things a little differently:

"That fun money is literally money every month that you can set on fire if you wanted to, you could burn it, you could bury it. I don't care, but it allows us as humans to have that ability to get that instant gratification within reason."

This isn't about being irresponsible. It's about giving yourself some freedom within your budget so you don't feel restricted.

The Food Budget Hack

Here's another little trick I use:

"Everyone always fights on groceries and eating out, right? Like those are the two, but don't they do the same thing? They both, they both feed us, right?"

Instead of having separate budgets for groceries and eating out, combine them. This gives you more flexibility and reduces stress about where you're spending your food money.

Changing Your Financial Behavior

Now, let's talk about the elephant in the room: financial behavior. This is where the real change happens, folks.

"The numbers are the numbers. It's about your behavior and your mindset that matter the most."

Understanding Your Emotions and Money

Here's a hard truth:

"We can no longer say, take your emotions out of financial decision. That's impossible."

Money and emotions are tied together, whether we like it or not. The key is to understand your emotions and learn to make decisions that align with your long-term goals, not just your short-term feelings.

Breaking Bad Financial Habits

One of the biggest habits we need to break? Trying to keep up with the Joneses. Remember:

"Are you living for them? Are you living for you?"

Every time you're about to make a purchase, ask yourself this question. It can save you a lot of money and stress in the long run.

Dealing with Income Deficits

Now, what if you're in a situation where you're spending more than you're making? Here are a couple of strategies:

1. Adjust Your W-4 Withholdings: If you're getting a big tax refund, you're giving the government an interest-free loan. Adjust your withholdings to get more money in each paycheck.

2. Increase Your Income: This might mean asking for a raise, finding a new job, or starting a side hustle.

Remember:

"The only way you can fix income deficit issue is Usually more income."

Building Wealth Beyond Dollars

At the end of the day, true wealth isn't just about the numbers in your bank account. It's about creating a life that brings you joy and security.

"True wealth comes from our memories and our joy."

That's why at Modern Family Office, we focus on helping you build wealth that goes beyond just dollars and cents.

Your Next Steps

Ready to take control of your finances? Here's what you can do:

1. Download my free ebook from Black Mammoth for more tips on building wealth as a minority business owner.

2. Check out my podcast, No BS Wealth, where we dive deep into these topics and more.

3. Start your 12-month expense tracking exercise today.

Remember, family, financial freedom is within your reach. It's not about getting rich quick - it's about making smart decisions day by day, aligning your money with your values, and building wealth that lasts.

Let's get our money right, build generational wealth, and change the game for our community. We've got this!