Episode 1 - Know What You're Spending
For our first episode of The Money Dad Podcast, we dive into pitfalls in spending and how to track where our money is going so we can know how to gain control of it. 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: Well, April, it’s our first podcast. And up until a weekend ago, I didn’t even know what a podcast was!
April: Don’t worry, Dad. The reason we started this is because you’ve helped me so much with my financial journey. Thanks to your advice, I’ve been able to live a debt-free life. But you have a lot more experience and wisdom to share, so this is our way to pass it along.
Why People Spiral Into Debt
April: Let’s dive right into our first topic: people who are spiraling in debt. Often it’s due to student loans, credit cards, car payments, or just overspending. But sometimes, they also don’t make enough money to cover the basics. What do you do when you’re stuck in that hole?
Robert: First, you have to understand why you’re in debt. When I was young, I made almost no money, but I spent like a “weekend drunk.” I’d blow my paycheck buying drinks for everyone, breakfast at 2 a.m., and by Monday morning, I had nothing left for rent, utilities, or gas.
A lot of people spend without thinking. Amazon makes it worse — I’ve seen people waste hours shopping online, buying things they don’t need just because they were “on sale” or “a great deal.” The truth is: a bargain is still spending.
Starbucks is another example. Seven dollars a day might not seem like much, but over a month that’s $150. Those habits pile up and keep people broke.
The bottom line: most debt spirals start because people don’t pay attention to where their money is going.
Step One: Change Your Mindset
You have to change the way you think about money. If you keep doing what you’ve always done, you’ll keep getting what you’ve always got.
It’s simple economics: your wants may be unlimited, but your income (supply) is limited. That means you must focus on needs first, not wants. Put on financial blinders and stop comparing yourself to what others are doing.
The “B” Word — Budgeting
April: What you’re describing sounds a lot like the “B” word — budget. But budgets can feel scary. Do people really have to cut out everything? Even Netflix?
Robert: That depends. If you’re not bringing in enough to cover your expenses, then yes, you’ll have to cut things. But you don’t necessarily have to give up everything forever. The first step is identifying what you actually spend money on.
Before you can create a budget, you have to track every single expense. Write it in a notebook, use a spreadsheet, or download a budgeting app — it doesn’t matter how. Just do it.
Start with the basics: housing, utilities, groceries, transportation, insurance, taxes. Then include smaller things like coffee, snacks, and lunches out. When you add it all up, most people are shocked to discover they spend far more than they make. That’s the wake-up call.
Practical Examples
Think of it like writing computer code. Back when I worked in software, I learned that you can’t be “almost right.” You have to be detailed, step-by-step. Your finances are the same way — you need to know exactly where every dollar goes.
If you buy lunch every day at $12, that’s $240 a month.
Starbucks five times a week adds another $150 a month.
Add in gas, car maintenance, and “little” impulse buys… it adds up fast.
Once you see where the money is going, you can start making changes.
Mindset Shift: Needs vs. Wants
Cutting back doesn’t mean you never get to enjoy life. It means you choose wisely. Maybe you keep Netflix but cut Starbucks. Maybe you eat out less but keep your gym membership. Make three lists: needs, strong wants, and things you can live without.
And remember — it’s not forever. You can reintroduce some wants once you’ve stabilized. But while you’re in debt, focus on needs.
A PhD in Money
To win with money, I like to say everyone needs to earn a “PhD”:
P = Poor. You’re starting out in a tough spot because of bad financial choices.
H = Hungry. You have to get hungry enough to want real change.
D = Determined. You stick with the plan until you’re debt-free.
The Goat Story (Overcoming Adversity)
When I started my first business, I faced a tough season with no income. I almost gave up. But then I heard a story in a nearby church about a goat that fell into a well. The farmer, thinking the goat couldn’t be saved, started shoveling dirt to bury it.
But the goat shook off each shovel of dirt, packed it under his feet, and eventually climbed out of the well.
That’s the lesson: life will shovel dirt on you — debt, setbacks, struggles. But if you shake it off and use it as a step up, you can climb out of the hole.
Action Steps
April: So to recap:
Track every single expense — no matter how small.
Separate needs from wants.
Cut back where you can, without necessarily cutting everything.
Change your mindset: stop comparing, focus on your own tunnel vision.
Robert: Exactly. Next time, we’ll go deeper into building a budget and what to do if your expenses are still higher than your income.
Closing
Thanks for listening to the Money Dad Podcast. Head to themoneydadpodcast.com for resources and to send us your questions. Do your homework — track your spending — and we’ll see you next week.
One Response