---
title: 'How Do I Make A Budget And Stick To It?'
source: 'https://youtube.com/watch?v=4Eh8QLcB1UQ'
video_id: '4Eh8QLcB1UQ'
date: 2026-06-30
duration_sec: 265
---

# How Do I Make A Budget And Stick To It?

> Source: [How Do I Make A Budget And Stick To It?](https://youtube.com/watch?v=4Eh8QLcB1UQ)

## Summary

Sam, a new parent, seeks advice on creating and sticking to a budget. The host explains that a budget is not a restriction but a tool to align spending with family goals, such as getting out of debt and providing for a new baby. He emphasizes the importance of a shared 'why' and using tools like the EveryDollar app.

### Key Points

- **New Parent's Financial Concern** [00:00] — Sam and his wife had a baby and are worried about their finances and debt after listening to the show. They ask how to make a budget and stick to it.
- **Budget is a Guardrail, Not a Straight Jacket** [00:35] — A budget is a plan you set for yourself to guide spending and avoid running off the road, not a restrictive punishment. It helps achieve bigger goals like creating a great life for the baby.
- **Start with Realistic Categories** [01:03] — Couples should sit down and decide specific amounts for categories like groceries and entertainment. The host suggests beefing up the grocery budget initially because people usually underestimate their spending.
- **Link Budgeting to a Bigger Goal** [01:47] — The purpose of limiting spending is to achieve a more noble goal (e.g., getting out of debt, changing the family tree). This makes saying no easier when funds run low.
- **Track Every Dollar with an App** [02:28] — Use the free EveryDollar app to write out the budget, track spending throughout the month, and keep both spouses on the same page. It only takes about 10 minutes to set up.
- **Admit Your Limits** [02:55] — Everyone has financial limits; a budget is just admitting them. When the budget for a category is used up, stop spending because you have already decided on a more important goal.
- **Budget is Permission to Spend** [03:25] — Once you allocate money to a category (e.g., clothes), you have permission to spend that amount without guilt. Staying within budget makes you feel like a hero.
- **Keys to Success: Why, Unity, and Plan** [04:02] — To stick to a budget you need a strong 'why' (like a new baby), be on the same page with your spouse, and have a clear game plan with guardrails.

### Conclusion

Creating and sticking to a budget requires a clear, shared family goal, realistic spending categories, and consistent tracking using a free app like EveryDollar. It turns budgeting from punishment into empowered spending aligned with what matters most.

## Transcript

Sam starts off this hour in Indiana, hi, Sam, how are you? Better than I deserve. What's up? So my wife and I, we just had a baby here a few months ago, our first one.
And after sitting down and looking at our money and our debt and after listening to your show, I've gotten fairly nervous about where my financial standing is. And I guess my question is, how do I make a budget and then be able to make myself and my wife, you know, make ourselves stick to it?
Okay, it's a good question. The great news about having a baby and congratulations is it makes you get serious about stuff like that. And starting to get your act together on some things. That's very cool. I'm glad you're doing that.
Okay, so number one, when you do a budget, it is not a straight jacket. It is you telling you what to do.
Okay, so it's a guard rail. It's don't run off the road. And so you, the two of you sit down and say, for groceries this month, we want to spend X.
And by the way, as a side note, whatever you think you're spending on groceries or spending more. So the first month, go ahead and beef that one up. Okay, but we're going to spend X on entertainment. Okay, I'll just make up a 50 bucks.
Okay, we're just going to put $50 in the entertainment category. And then the two of you are in agreement that the reason we're limiting our entertainment spending to $50 is so that,
and so that's a big deal. We can get control of our money, get out of debt, create a great life for the new baby. And so the great life for the new baby and change your family tree is the goal, not punishment for entertainment.
You see what I'm saying? And so it makes it really easy. It's like when you look at it and you go where $40 and to go this movie costs another $30. We don't have that. We got $10 left in the budget. We can't go the movie because we decided that it was more important to straighten our family out for the good of our child than it is for us to entertain our butts off.
And so you are limiting you and then so you and then of course you write it out and you keep up with it and you track it throughout the month. And every dollar budget will do that for you. Get that every dollar app. It's free.
And you can build it in about 10 minutes. So all it takes. And you'll be able to, you know, the both of you will have it on your phone and you can look at it and keep up with it.
And you know, just go, we don't have that. So the answer is, you have to, everyone has a limit on everything. A budget is just admitting it because no one has infinite money. Right.
And so, you know, you just say, okay, at this point, we're not going to spend anymore because we believe in a bigger goal, a more noble goal than simply buying more crap at the grocery store.
Or, or I need the shirt that's on sale or whatever it is, right. And so, right. But then the interesting thing is the things you do spend on. You've given yourself permission to do that. So you don't feel weird or guilty about it. Right.
So like my daughter Rachel Cruz who teaches Ramsey Personnel teaches on budgeting all the time says a budget is permission to spend. Okay. Because you said we're going to spend this much on clothes. And so as long as you don't go over that amount, then, you know, you feel like you're a hero and you bought clothes instead of like, okay.
What you spend there is the storm in, you know, it's like, but we're on the same page. We're working together. So you need a good why you got a good why it was born the other day. You have a wonderful why. Right.
And you need to be on the same page with your spouse and a game plan and then have your have your guardrails laid out and then stick to them. So very good start. Very good start. Honor to have you in our audience.