WEBVTT 00:05.079 --> 00:07.301 When it comes to building wealth , it's 00:07.301 --> 00:09.412 not how much you make , it's how much 00:09.412 --> 00:11.579 you keep that's important . And one of 00:11.579 --> 00:13.801 the best ways to do this is to follow a 00:13.801 --> 00:16.159 budget . This four-step budgeting 00:16.159 --> 00:18.159 series will show you how to build a 00:18.159 --> 00:20.103 budget and bring you into a closer 00:20.103 --> 00:22.219 relationship with your money . The 4 00:22.219 --> 00:24.690 steps are , know your current situation , 00:25.059 --> 00:26.948 know where your money should go , 00:27.260 --> 00:30.610 create a plan , and make adjustments . 00:31.020 --> 00:33.076 So without any further delay , let's 00:33.076 --> 00:35.242 jump right into step 1 , which is know 00:35.242 --> 00:38.150 your current situation . This step is 00:38.150 --> 00:40.261 all about understanding what's really 00:40.261 --> 00:42.630 going on with your money today . And a 00:42.630 --> 00:44.463 great way to do this is to start 00:44.463 --> 00:46.352 tracking all of your current cash 00:46.352 --> 00:50.159 inflows and outflows right now . For 00:50.159 --> 00:52.381 inflows , you need to look at more than 00:52.381 --> 00:54.215 just your paycheck , gifts , tax 00:54.215 --> 00:56.110 refunds , rebates , proceeds from 00:56.110 --> 00:58.443 selling stuff . If it's money coming in , 00:58.443 --> 01:00.740 it all counts . And it's similar for 01:00.740 --> 01:03.259 outflows . All saving and spending 01:03.259 --> 01:05.481 should be tracked . Small spending like 01:05.481 --> 01:07.839 a snack or an app purchase , track it . 01:08.059 --> 01:10.739 Reoccurring expenses like car payments 01:10.739 --> 01:12.970 and cell phone bills , track it . 01:13.220 --> 01:15.500 Fluctuating outflows like groceries and 01:15.500 --> 01:18.260 entertainment , you guessed it , track 01:18.260 --> 01:20.699 it . You also need to include out of 01:20.699 --> 01:22.860 the ordinary things like gifts or new 01:22.860 --> 01:24.971 tires for your car , even though they 01:24.971 --> 01:28.180 don't happen every month . The idea is 01:28.180 --> 01:30.180 to really understand where all your 01:30.180 --> 01:32.347 money currently goes , so that you can 01:32.347 --> 01:34.291 be more accurate when you start to 01:34.291 --> 01:37.830 create your plan in step 3 . So , how 01:37.830 --> 01:40.230 should you do all this tracking ? Just 01:40.230 --> 01:42.174 keep it simple . Whatever's easy , 01:42.174 --> 01:44.341 accurate , and works for you is good . 01:44.750 --> 01:46.972 One practical idea is to use your debit 01:46.972 --> 01:49.194 card for every purchase . That way your 01:49.194 --> 01:51.139 bank statement or your online bank 01:51.139 --> 01:53.194 history will do all of that tracking 01:53.194 --> 01:55.417 work for you . From there , consolidate 01:55.417 --> 01:57.417 everything into an app , a computer 01:57.417 --> 01:59.472 program , or even a piece of paper . 01:59.472 --> 02:01.694 How you track things isn't as important 02:01.694 --> 02:04.779 as that you actually do it . So . Now 02:04.779 --> 02:07.089 it's time to get to work . Spend the 02:07.089 --> 02:09.145 next 30 days really paying attention 02:09.145 --> 02:11.367 and tracking what's currently happening 02:11.367 --> 02:13.311 with your money . And while you're 02:13.311 --> 02:15.145 doing that , watch step 2 of the 02:15.145 --> 02:17.210 budgeting process . Know where your 02:17.210 --> 02:19.529 money should go to get a better 02:19.529 --> 02:21.473 understanding of what a successful 02:21.473 --> 02:24.080 budget looks like . Let's be real . You 02:24.080 --> 02:26.119 work hard for your money . Now it's 02:26.119 --> 02:28.589 time to work hard on keeping more of it .