Anyone know of any free budgeting classes?

[maryadavies]

I know this sounds weird. But my brother just got a new job, (He was out of work for a year) I was talking to him about it, and I know he doesn't know note one about budgeting, and he's going to have to learn!

Anyone know of any classes/courses online to help? It hasn't started out well, my brother's car just blew the head gasket so that's going to mess things up for a while.

[tripods68]

I found this on Youtube:

https://www.youtube.com/watch?v=O1dkn6S2BOU

[disneysteve]

I was going to suggest YouTube also. Just search "how to make a budget" or some variation of that and you'll probably find a load of content.

In fact, one money-saving tip that I often give people is to search YouTube whenever they need to learn how to do something, whether it's how to use certain features of a software program, how to repair a washing machine, where the cabin air filter is on your car, or how to get a coffee stain out of your carpet. I've even used YouTube to brush up on some medical procedures when I started my new job at Urgent Care recently because there are some things I will need to do that I haven't actually done for many years. You can find how to videos on pretty much anything imaginable there.

[Nutria]

I know this sounds weird. But my brother just got a new job, (He was out of work for a year) I was talking to him about it, and I know he doesn't know note one about budgeting, and he's going to have to learn!

Anyone know of any classes/courses online to help? It hasn't started out well, my brother's car just blew the head gasket so that's going to mess things up for a while.

I honestly don't think you need classes, since it's nothing more than basic math. In a spreadsheet, just list your income, and all of your outflows. Stopping cash and using debit and credit cards are great for this, since they itemize all of your outflows.

Some other thoughts:

• If you're deep in debt, what you need (and we sure needed!) is bravery enough look at your financial mess.
• Spreadsheets are great!
• When you buy groceries, clothes and auto parts from Walmart, pay for them separately so that you can more easily categorize the spending.

[disneysteve]

debit and credit cards are great for this, since they itemize all of your outflows.

That's only partly true. Your statement will say you spent $57.24 at Target but it won't say what you bought. It could have been groceries or it could have been DVDs, video games, or beer.

I think someone just starting out needs to go old school. Carry a little notebook and write down every single expenditure in detail. Not just what you spent but exactly what you bought. Do that for 30 days. Then review the list and sort it into needs and wants. That will give you a pretty good idea of where the problem areas are.

[Nutria]

That's only partly true. Your statement will say you spent $57.24 at Target but it won't say what you bought. It could have been groceries or it could have been DVDs, video games, or beer.

Well... it takes some memory.

I think someone just starting out needs to go old school. Carry a little notebook and write down every single expenditure in detail. Not just what you spent but exactly what you bought. Do that for 30 days. Then review the list and sort it into needs and wants. That will give you a pretty good idea of where the problem areas are.

Or do it in your smartphone.

[maryadavies]

Thanks guys. Well..after he deals with that head gasket (that's going to be expensive to fix; can't he catch a break? I think he was quoted $1,400 to fix that, and from my research most of that is labor AKA. a Pain In The Ass Fee(you have to half take the engine apart to fix that); luckily we got a honest mechanic; at this point he needs that car to get to work, so no question on fixing or not fixing that) I'll suggest to him he just keep track in a notebook of what he spends and for what for a month so he can figure it out. Can proly get said notebook at the dollar store.

Also someone at church who works in a bank offered to talk to him about it (she's a Finance major); better to make sure he knows what he's doing since it'll help us all. ^^

[disneysteve]

Also someone at church who works in a bank offered to talk to him about it (she's a Finance major);

Just be careful about taking advice from others. The vast majority of Americans, including people who work in banks and even people with degrees in Finance, really don't have a clue about proper money management.

[snafu]

...'be careful about taking advice from others. The vast majority of Americans, including people who work in banks and even people with degrees in Finance, really don't have a clue about proper money management'.

Is brother aboard in practicing money management skills? I suggest using a Credit Union if there is reasonable access since bank charges have been going up and expanding to formerly 'free' services. They seem so good at transferring your money to their benefit. Would he consider using a free program like MINT to help with details? Can you sell him on common protocols like ...give every dollar a job?'

[maryadavies]

Snafu; both me and my brother use the same credit union. We moved out tails there when our old bank threatened to charge for debit cards a couple years ago. (And since my income's kinda irregular, that works, especially since Wells Fargo is now putting fees on even grandfathered in accounts there. I needed free checking)

I think eventually I can get him to either use Mint or the older version of You Need a Budget (which is on Steam; ironically since we're both gamers). I think first priority though is DEAL WITH THAT HEAD GASKET ! He'll lose the job if he can't get to it, obviously.

But yeah, once he deals with the emergency, I think he can work on putting his money to work. Oh and before anyone asks; we're Mormons, which means we're taught from a early age to live within our means already, so that's at least one problem out of the way. I gave him the suggestion about "get a notebook from the dollar store" to help track once he pays off the mechanic.

[Nutria]

I think eventually I can get him to either use Mint or the older version of You Need a Budget (which is on Steam; ironically since we're both gamers). I think first priority though is DEAL WITH THAT HEAD GASKET ! He'll lose the job if he can't get to it, obviously.

Can't you do both (budget and fix the car) at the same time?

It would, in fact, help him to more quickly pay off the car repair.

Oh and before anyone asks; we're Mormons, which means we're taught from a early age to live within our means already, so that's at least one problem out of the way.

As long as you live by that teaching...

[maryadavies]

Little hard to figure out where the money's going when you got a rotten car repair that you didn't expect. But maybe he can try. I'll ask him later, too late right now.

And I agree on living by it; no pun intended, but you have to put your money where your mouth is with beliefs like that.

[Nutria]

Little hard to figure out where the money's going when you got a rotten car repair that you didn't expect

• Rent
• Groceries
• Auto insurance
• Renters/homeowners insurance
• Cell phone
• Parking (if relevant)
• Entertainment
• Fuel
• Electricity
• Cable
• Fast food
• Gifts
• etc
• etc

These are all expenses which need to be tracked for a month or two, and are independent of whether or not the car needs to be repaired. That's the expenses I was referring to.

[maryadavies]

I'll see if I can get him to do it; that's the first step in budgeting, right?

Also that nightmare car repair might not be as bad as my brother thought. Our mechanic (Wayne) found a stuck thermostat and a busted water pump was likely causing the problem bro was seeing. Luckily my brother kept pouring coolant in it, which saved the car. It's only going to run him $500, phew.

Yes he might have to replace the plastic overflow tank again (Second time in as many years), but that's a sight less than having to deal with a head gasket.

[Nutria]

I'll see if I can get him to do it; that's the first step in budgeting, right?

At it's most basic, there are just three steps in budgeting:

1. List the in-flows (typically, your pay)
2. Accurately categorize all your out-flows
3. Compare the two.

Everything beyond that falls into the category of Sound Financial Management:

1. staying on budget
2. paying off debts
3. reducing unnecessary expenses
4. building up deferred spending and emergency funds.

Accurately categorizing all those out-flows is the hardest part, though, and requires some internal bravery if you're drowning in debt because you spend a lot on non-essential stuff.

Even if you aren't deep in debt, it still requires lots of detail work which few like to do.