NMHD Budget Clinic – Episode 2 – What ‘Living Beyond Your Means’ Looks Like on Paper

A heads up: I’m tossing out the syllabus I introduced in Episode 1–way too stuffy and formal for my tastes.

In Episode 2, I introduce (fictional) Max, a 22-year old recent college grad who has a great job in Austin. We’re going to look at his expenses line by line to understand what kind of a salary he has to have to maintain his lifestyle and pay down his student loans at the regular rate.

This episode is a building block for future episodes as we work to bring Max’s spending under control and put him on the road to paying off his loans early.

 

Episode 2 Materials

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4 Comments

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4 responses to “NMHD Budget Clinic – Episode 2 – What ‘Living Beyond Your Means’ Looks Like on Paper

  1. Jenny

    Yup, this sort of expense/income imbalance was almost universal among my hometown friends in the first couple of years after college. I think this video series will help coax some people into running their numbers. For me, it took projecting my financial future through the age of 60 to fully appreciate why change needed to happen sooner rather than later. Once you get on a roll with debt repayment, it feels great–I’ve repaid $60k in student loans since October. Thanks for the inspiration!

    • Jenny, at the end of the day, that’s the exact goal of this video series. I really hope it happens. Even if just one person watches them end-to-end and follows through, I’ll be glad that the series made a difference.

      There was a way to make this particular video a lot shorter than 20 minutes, but I wanted to show people the kind of conversation that they’re likely having with themselves as they document their current expenses, and then in future episodes, I want to show how that conversation should change as they attempt to bring their expenses into profile. The truth is that this episode could have easily taken an hour, and had this been done in a classroom, it would have sparked a rich dialogue about spending and tracking dollars.

  2. Christopher

    Impressive excel skills. Now I have to go watch a tutorial so I can be ready to create a budget when it’s time. I like your videos and thank you for the help.

    • Thanks, Christopher. Let me know if you have any questions along the way. Right now we’re doing all the preliminary work before we actually build the budget–I’m thinking around episode 6.

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