Married for 5 years with 2 young children
Business owners with a combined income of around $200,000
While still earning a good combined income, the couple had:
Following our personal budgeting process, we started at the basics.
The first step was to get the initial cash flow issues under control.
A detailed weekly budget was drawn up which included every dollar which flowed in and out being placed into a spreadsheet and categorised under either “Fixed” or “Variable” expenses.
A clear understanding around what was currently being spent was reached.
Guidelines were then agreed to by the couple and put in place around expenditure. This defined what could and couldn’t be spent.
Everything was defined in black and white so that there was no ambiguity around expenditure.
A fixed bank account was then created. We call this the “RED” account. The couple’s weekly salary flows into this. All fixed expenses are paid out of this account such as:
In addition, a “GREEN” bank account is created. This is where any variable expenses come from such as:
The couple can enjoy guilt free spending from the green account.
Fast forward 12 months on and the couple has:
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