Frugal Friends Podcast - Episode: Budgeting Tips for 2025
Released on December 27, 2024
Hosts: Jen Smith & Jill Sirianni
Produced by iHeartPodcasts and Eric Sirianni
Introduction
In the December 27, 2024 episode of the Frugal Friends Podcast, hosts Jen Smith and Jill Sirianni dive deep into essential budgeting strategies to help listeners gain better control over their finances in the upcoming year. Building on the success of their most downloaded episode from the previous year, Jen and Jill bring fresh perspectives and actionable insights to empower their audience in their financial journeys.
Starting with Your Spending: The 90-Day Transaction Inventory
Jen and Jill kick off the episode by challenging traditional budgeting methods. Instead of immediately crafting a budget, they emphasize the importance of understanding current spending habits.
Jill [09:07]: "The biggest budgeting tip that we can give you for 2025 is to not start with your budget. Start with your spending."
They introduce the 90-Day Transaction Inventory method, encouraging listeners to review their past three months of transactions to identify spending patterns and triggers. This reflective approach helps in recognizing unnecessary expenditures and sets the foundation for a more tailored budget.
Jen [04:20]: "You all just want to hear really the same things in a new way. And you know what? Me too."
Prioritizing High-Interest Debt
A significant portion of the episode focuses on debt management, particularly targeting high-interest debts like credit cards and personal loans. Jen and Jill underscore the detrimental impact of high-interest payments on financial health and overall well-being.
Jill [16:52]: "We call them values, although we also talk about goals and priorities within our book as well. But this is where we are going to start to define the parameters for our spending."
They advocate for prioritizing debt repayment as a means to free up more funds for essential values and goals, ultimately reducing financial stress and enhancing quality of life.
Jill [27:06]: "Debt is one of those highest priority things. It is the first thing specifically high interest debt."
Optimizing Retirement Savings
While addressing debt, the hosts also highlight the importance of not neglecting retirement savings. They discuss strategies like contributing to a Roth IRA and taking advantage of employer-sponsored 401(k) matches.
Eric [27:06]: "Progress is better than perfection. So whatever you can be doing, even alongside debt payoff, [...]"
Jen and Jill advise a balanced approach, suggesting that even modest contributions to retirement accounts can yield significant benefits over time, complementing debt reduction efforts.
Evaluating and Changing Your Income
Recognizing that income plays a pivotal role in budgeting, the podcast delves into strategies for evaluating and potentially increasing one's income. The hosts encourage listeners to assess their current job satisfaction and explore opportunities for career advancement or diversification.
Jill [29:45]: "Look for ways to change your income no matter where you are. You should every year be taking inventory of what have I done at work or in my business in the last year?"
They discuss the concept of fulfilling work, emphasizing the importance of aligning one's career with personal values and long-term financial goals. This alignment not only enhances job satisfaction but also positively impacts financial stability.
Jill [33:18]: "Fulfilling work does not mean like you work at a nonprofit or for some kind of philanthropic thing. That is not what we mean by fulfilling."
Optimizing Major Expenses: Housing and Transportation
The episode also addresses the need to regularly evaluate significant expenses such as housing and transportation. Jen and Jill suggest assessing whether current spending in these areas aligns with overall financial goals and values.
Jen [34:59]: "The beginning of the year. This kind of marker of reevaluation is a good time to just ask ourselves questions about our housing and transportation situations."
They recommend adhering to general guidelines, such as spending no more than 30% of take-home pay on housing, while also considering personal circumstances and priorities.
Values-Based Budgeting Approach
Central to the episode is the theme of values-based budgeting. Jen and Jill advocate for creating budgets that reflect personal values—family, faith, friends, and fulfilling work—ensuring that financial decisions support what truly matters to each individual.
Jill [16:52]: "I love thinking about a budget as not just for your money, but kind of for your whole life."
This approach encourages listeners to allocate resources not just based on necessity, but also on enhancing aspects of life that contribute to overall happiness and fulfillment.
Listener Engagement and Feedback
Towards the end of the episode, Jen and Jill engage with their audience by sharing listener feedback and ratings. They highlight testimonials that showcase the positive impact of their advice on listeners' financial habits and goals.
Listener @frugalfriendspodcast.com [52:55]: "Thank you ladies. Woo. You have really grown with us since the beginning. 2018 is when we started, so you've been on the journey."
Additionally, they promote an upcoming book signing event, inviting local listeners to join them for a Q&A session, fostering a stronger community connection.
Conclusion
In wrapping up, Jen and Jill reiterate the importance of intentional spending, debt prioritization, and aligning financial strategies with personal values. They encourage listeners to take actionable steps towards budgeting for 2025, ensuring that their financial plans support a fulfilling and stress-free life.
Eric [53:38]: "If you've not done this yet, it really helps us. It also gives us content for our episodes so we can read them, hear what you have to say, make tweaks if needed, and help others find the show."
The episode serves as a comprehensive guide for anyone looking to refine their budgeting practices, offering both strategic advice and motivational support to achieve financial independence and personal satisfaction in the new year.
Notable Quotes:
Jen [04:20]: "You all just want to hear really the same things in a new way. And you know what? Me too."
Jill [09:07]: "The biggest budgeting tip that we can give you for 2025 is to not start with your budget. Start with your spending."
Jill [16:52]: "We call them values, although we also talk about goals and priorities within our book as well."
Jill [27:06]: "Debt is one of those highest priority things. It is the first thing specifically high interest debt."
Eric [27:06]: "Progress is better than perfection. So whatever you can be doing, even alongside debt payoff, [...]"
Jill [29:45]: "Look for ways to change your income no matter where you are."
Jill [33:18]: "Fulfilling work does not mean like you work at a nonprofit or for some kind of philanthropic thing."
Jen [34:59]: "The beginning of the year. This kind of marker of reevaluation is a good time to just ask ourselves questions about our housing and transportation situations."
Jill [16:52]: "I love thinking about a budget as not just for your money, but kind of for your whole life."
Listener [52:55]: "You have really grown with us since the beginning. 2018 is when we started, so you've been on the journey."
For more insights and tips on frugality and financial independence, follow the Frugal Friends Podcast on Apple Podcasts, Spotify, or your preferred podcast platform. Don't forget to rate and review to support the show and share your own budgeting successes!