Episode 2 - The "B" Word
Now that we know what we’re spending (see episode 1), we now have to build our BUDGET. How do we set up a budget and set ourselves up for success? Find out in this episode. Subscribe to the podcast on Spotify or listen below. We’ve included a cleaned up transcript below as well.
We have some spreadsheets for you! We referenced a few resources for you, so if you know how to use Excel or Google Sheets, you might find these helpful.
Intro
April: You’re listening to the Money Dad Podcast — practical financial and business conversations from a dad who knows money. I’m April Adams, and please welcome my dad, the Money Dad, Robert Adams.
Robert: Good morning, April. It’s a great day to spend time together and hopefully help people with their financial journey. We aren’t here to give official financial advice — just suggestions that, if applied, can make a real difference.
April: Yes, that’s the disclaimer: not official financial advice — don’t sue us.
Last time, we talked about tracking your expenses. Before you can make changes, you have to know where your money is going. Some listeners have already started doing their homework. So now that people know where their money is going… what do we do next?
Preparing for the Budget (the “B-word”)
Robert: Yes… the B-word. Budget.
Everybody hates that word — me included. But before we talk about how to build one, there are important things to consider first.
I’m speaking mostly from a family perspective, but single people, don’t worry — you can apply this too.
The first thing:
👉 Arguing about money is a direct path to divorce.
Don’t let money be the thing that divides you.
Do not fall in love with money. Stay in love with the person you’re building your life with.
You won’t both get everything you want all the time.
Unity is stronger than division.
Work together to find common ground.
Money Isn’t the Problem — Your Attitude Toward It Is
The love of money leads to greed and gives a false sense of security.
People often think:
Having more money = being more valuable
Buying things = success
But possessions don’t define you. Character does.
Put on financial tunnel vision.
Don’t compare your finances to someone else’s highlight reel.
Your journey is your journey. Focus on your goals, not someone else’s lifestyle.
Be content with where you are, and live within your means. Debt is often the result of trying to live beyond them.
Budgeting is Like Dieting (sorry, but it’s true)
April: Oh no. You went there.
Robert: Yes — budgeting is like dieting:
You need a plan.
You need to stick to the plan.
You have to control impulses.
Impulse eating = weight gain.
Impulse buying = debt.
Slip-ups happen. Learn from them and get back on track.
The SSC Method
Here’s a helpful acronym: SSC
Start. Stop overthinking and just begin.
Stop. If the plan isn’t working, pause and adjust.
Continue. If it is working, stick with it — consistency beats excitement.
Budgets require:
Flexibility
Review
Adjustments
You must review and track your budget, just like you’d track calories in a diet.
Emergency Funds & Credit Cards
If you don’t have an emergency fund, make it a priority.
When emergencies happen, most people reach for the credit card — and the debt spiral tightens.
Budgeting is not a weapon to use against each other.
Don’t hide spending.
Don’t weaponize the budget.
Don’t drown the budget with selfishness.
A budget is a tool, not a punishment.
Needs, Wants, Desires
Needs = necessary for life (food, clothing, shelter)
Wants = choices about quality (steak vs. hamburger)
Desires = luxury choices paid from surplus (the hot tub and massage chair level)
You don’t have to eliminate everything — just recognize what category it belongs in.
Step One of Building the Budget
List every single expense (from Episode 1).
Assign a monthly cost to each line item.
Compare spending with your income.
This shows your now condition — where you currently stand and what adjustments are needed.
Tools & Resources
On the website (TheMoneyDadPodcast.com), there are:
A downloadable budgeting spreadsheet
Links to budgeting apps (if spreadsheets aren’t your thing)
The spreadsheet:
Lists expenses
Tracks income
Calculates running balances
Shows when you’ll go negative before it happens
Robert: Apps can be convenient, but doing it manually (at first) helps you truly understand where your money goes.
Mailbag Question: Business Credit Cards
Listener (Cameron): “Thoughts on business credit cards for small business?”
Robert:
I’m in favor if you use them correctly.
Use credit cards to pay, not to borrow.
Pay it off monthly.
Use points to your benefit (flights, gifts, etc.).
A good starter card: Capital One Spark (not sponsored).
“Use the card — don’t let the card use you.”
Closing
Next episode: How to stop the debt spiral.
April: Thanks for listening to the Money Dad Podcast. Visit TheMoneyDadPodcast.com for resources or to send in questions. Do your homework, and we’ll see you next time.