Do Millionaires Still Need To Budget?
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Cristine now is on the line in dallas, texas. Cristine, how can we help?

Hi kin George.

thanks for that. You are a bundle of sunshine.

How do we help? Thank you. So my husband and I have a network close to five millions.

right? And for the .

past thirteen years, we ve kept a spread sheet charting every penny we've spent in various categories. So we know how much we need to live on once we retire.

You'd like Georgeous favorite piece, this ism. I want to be Christine.

When I grow up, we have two hundred and three hundred thousand and our bank account at all time. And when I built too high, we transfer the cash to fidelity mutual friend. We know where we spend money filling anthropy travel and wine, and if anything happens, we know where to cut back.

We actually eat out less than we used to before we reached one billion network. We buy used cars. And my question is, do you recommend a monthly budget for your baby step millionaire? I know that's looking out the front window and i'm we've looking out the back window.

interesting. I like this concept because I think you guys should be buying nicer cars and I think you should be going to really nice dinner on on a rk IT.

Sounds like you've been too frugal and there's a scarcity mindset here. Do you feel like you're spending enough and giving enough and saving enough?

I just recently .

let us .

get business .

class .

tickets. Wow.

no, no, no, no. But we fly, we fly pretty economy back.

We are actually joke, are saying you've earned IT. I think this so you're asking, should I do a budget? Yes, absolutely. Maybe you can switch you know the spread sheet lifestyle to the every dollar lifestyle. And I think you're going to find IT far less and far more freeing yeah I think you know at this point what you're gonna spend.

And guess what if times get tough world, get back towards spread sheet and make sure that accounting for every penny here, but every dollar is going to help you do that just the same, just without the spread sheet. And so okay, I would I wanted know what you're doing with a three hundred grand. Why do you need that at all times in a .

checking account? Because I mean.

is IT a fear thing of the if the stock market tanks and we need money or what? Because you guys aren't a retirement age yet.

That sounds like well because um my husband's a lawyer so we pay quarterly taxes and each quarterly this has been forty eight thousand so I have to be ready to write a forty eight thousand check a recent arter. So yeah that's kind of the big thing but um he would have more like one hundred thousand in the account. It's me. I'm the one who .

wants how old are you do?

Fifty six?

Okay, fifty six. Now once you're at retirement age where you guys or maybe is work optional, then I would understand having a year or two of expenses talked away the highest saving savings count. But to have three hundred grand right now, IT feels like you couldn't make Better use of that money by either investing IT using IT toward a goal that you guys have. I'm assuming you guys have no debt .

and no mortgages where our houses worth .

one point eight, wow, and it's paid for.

Of course, that's the first thing we did.

You guys are incredible. So I would turn that down and go. Okay, we no need fifty grand once a quarter, but we don't need three hundred grand all at once are all year alone.

So let's turn IT down to a six months urgency fund in one high yids savings. Have another highfield savings that's accounting for the estimated quarterly taxes. Maybe it's a sinking fun where you put in however much you need. If it's every order you need fifty grand, then we're talking about fifteen grand a month going into that sinking fun to the high .

old savings yeah because the draws are like ten thousand or even nothing one month and then seventy eight thousand .

the next month you get big where that sinking fun will come in handy. But IT feels like you're leaning a little too far on on the fear side right now of what if and what if the truth is you're gonna have the money. We know the money.

He's gonna there. You guys have the money in these accounts. You have money outside of retirement other than than than three hundred grand like a non retirement .

investment account. Yeah, we have one point eight in the four one k one point eight in the house, eight hundred and twenty invest in and fidelity mutual.

that's just non retirement. eight? twenty. yeah. okay. So think about worst case, you could liquidate some of that non retirement money and you'd probably have long term capital gains, likely fifteen percent.

I don't know what you're come. Sounds incredibly high. What is your household .

income average?

amazing. Yeah you guys are crushing IT. And you know we get colors that are living more lavish lifestyles with far less with debt.

And so you guys we're doing great. I would encourage you. You may be increase the giving and spending ARM because your savings ARM. You're get the muscle there.

You're right. You're right.

So that every dog budget will help you force you to do that. You can put a fun money line item for Christine and a sounds of you guys like the travel, you like wine. Let's increase the experiences, upgrade the cars. Do IT all with cash. I don't think you guys are the type to go crazy.

But I mean, just listening to her. I I can't imagine times getting tough for them because no matter what would happen that should be so prepared there.

there's a lot you can do here when you get one point eight million dollars, one point eight in the one k eight, twenty in the broken account. I'm breathing easy.

Oh yeah. But you get the feeling she's not. You have a feeling that .

at any time you could all come crashing down. We've got A, I can't live in that a poc aleph mindset too long. No, I go not but way to go.

Christine. And there's something too you know, when a person has been tracking spending on a spreadsheet that long, I mean, that's that's a there's a deep emotion driving that. And we didn't have time nor was IT really relevant.

But to tie this into the rest of the audience going and I see myself in her, there is a, there is something in her past. They're just is the way that her parents treated money, talked about money. Something happened.

We're rated the scarcity .

oh yeah yeah because scarcity one thing I mean, it's almost like he has A A deep seated fear that things could go really bad really quickly and i've got ta be ready. I mean, when you're talking about somebody who says at all times we have three hundred thousand dollars in our checking out, we did. I mean, I believe her.

I think if he gets to two seventy five, SHE goes, oh my. And I think SHE feels a lup in her throat to get twenty five grand more. And there I really believe that and there's something there and think it's important for all of us understand how we view money comes from some thing in our past. And if we're going to get out of debt and and live like no one else, we also have to to deal some of those old patterns too. And here SHE is she's winning .

on paper yeah .

but he doesn't feel like she's winning.

And if everyone listening is rolling their eyes going, oh my gosh, this this is a real problem, but it's a real problem for castine. This is a motion behind that, right? He doesn't see the share numbers.

Most americans who on the street street, how would you feel he had three hundred thousand dollars at all times in your checking to help people would just start laughing.

Historical yeah. Mean, that's lottery winner. I'm retiring today. That's the kind of stuff here here and she's going I don't know it's enough lot of scenarios I got account for yeah but Rachel talks about this in her book know yourself, know your money, the money classroom so it's a great book for Christine. I am going to send IT to you, Christine, that might help you get to the root of this. Know yourself, know your money by your friend Rachel crews.

Hang right up the call.

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