How a BUDGET can score even the POOREST of people a motorcycle! *DCAM* [mv]{

Guys right now in this D cam episode We're going to talk about one of the least glamorous but one of the most important parts of adventure motorcycling on a budget and that is to create your budget creating a budget does Two things it saves you from going into debt to buy your motorcycle And it makes you respect the money and respect the motorcycle better once you have it It also makes you think long and hard before you go spend all your money on one place You're going to search for a better deal because you work harder to save the money if you get the money from a bank You're really not going to care about a deal because the money is basically infinite depending on your credit score Now going into debt for a motorcycle is a terrible idea because if ever a life event happens where you need to get rid of Something to get money guess what's going first. It's going to be your hobby It's going to be that motorcycle which has a lot of equity in it And if you bought it brand-new and with a bank loan all the money that you've put into it is going to be interest And you're also going to take a big hit in depreciation If you can pay for your motorcycle with cash that you have saved up You can sell that motorcycle if things get rough and have roughly the same amount of money Back from the motorcycle unless you crash it big and if you buy it right in many cases You'll be able to make money if you have to sell the motorcycle so without further ado Let's talk about the envelope method of budgeting This series dirt cheap adventure motorcycling is basically to Help people find out ways that they can get into to adventure motorcycling that Maybe they didn't You know maybe they thought well, that's too expensive for me well I'm just out to you know kind of help those people out and see what we can do to get them on a motorcycle and enjoy life because really there's Just not a whole lot. That's better. I mean as you can see this is just amazing Experience is awesome It's the first thing we're going to talk about actually is budgeting And I know that this is I mean it's like I'm budgeting that has nothing to do with motorcycle If you don't have a motorcycle yet, it has everything to do with motorcycling especially if you don't have a lot of money If you have a lot of money you have no reason to watch this video Budgeting is something that a lot of people have no idea Down to it there are a couple of different ways to budget Basically everybody has income And they just need to figure out Where their money is going I mean that's kind of the that's the whole purpose of Budgeting and saving is You want to forego some of the stuff you could buy right now to buy something cooler in the future? So I'm going to talk about a method of budgeting That maybe you're familiar with maybe you're not Because some people are on really tight budgets, and they've got to Make their dollar go a lot longer one method. That's really effective is called the envelope method Now you need to come up with About what you end up spending every month on stuff, okay? food eating out Motorcycle repairs car repairs gas utilities I'm in the list. It's a long list of stuff. You got to figure out. How much do you pay for insurance? How much do you pay for? Everything you got to figure it all out You got to find out where every penny goes in a month and Then write it down and keep track of it. It's not easy. I mean You're really you actually have to put some work into budgeting. It doesn't just oh, I'm budgeting It doesn't just magically happen you actually have to put some effort into it but of course the end goal being hey you have a motorcycle and a good one of that and One that you want one that you like and preferably one that you're not going to take a huge hit on if you Decide that you don't like it you want to sell it because you're gonna buy it used right the envelope method You need to find out what you're spending on what that's that is step one Step two is you see areas that you could improve. This is so common sense But nobody does it okay, and if you if you want to get into this gosh, it's an expensive It's an expensive hobby And you're gonna need some money to do it and once your body once you have your bike the story's not over You've got a bike here. You've got to buy Gas maintenance on a motorcycle is actually pretty expensive Even if you do it all yourself The gist of it is this stuff costs money, and you're gonna have to save up for it now there's some people that I know that honestly like There one week. They're like. I'm gonna buy a brand-new dr. 650 in the next week They're like I'm gonna buy guns and the next their money. Just is like burning a hole through their pocket, and you're like dude Stick to something and save for it and buy it don't Anyway because then you end up paying like One and a half times or two times what you should have for the same thing just so you can have it right now you know find out where you might be spending too much money if you're spending like and The thing is you're not supposed to become like a hermit after this You're supposed to prioritize and figure out stuff that you really want to do like If you're spending you know a hundred bucks a month on on going to movies or going on dates You might be like oh Man, I'm spending way too much, but if you love movies, or you really want to meet the girl of your dreams. That's Money well spent you know So you got to prioritize however if you're if you're going on dates that suck or all the movies you're going You're just kind of going to movies because you're like now. I'll just go to my movie and go to this movie with my friend Doesn't make any sense so you got to come up with your priorities and making a budget is a good way to do that You know it you kind of think Maybe I could go without this or maybe I don't need to eat filet mignon every night or whatever Once you've figured out a budget, and you figured out what what you can cut then cut it big like slash it down like if you if you really don't care what you eat go and buy inexpensive food and Don't go out to eat Just cut it The way that you're going to cut it is you're going to come up with like a hypothetical number. That's like Okay, this is what I think I need for this month And you clear up you clear up the money, and then basically you have envelopes This is the envelope system, and you get your paycheck. You don't leave it in the bank. You don't deposit it or whatever you Get it and you cash it out right then so it's cash And then you put cash in each of the envelopes Equal to what you budgeted for and at the end of the month if you don't have money left over for movies snacks or video games or whatever You're out. You're done. You have no more and hopefully you have an envelope that says motorcycling on it and you can go ahead and You know you keep your money in that envelope, but the key is you've got to be you got to exercise your strength because you don't Take money out of any other envelope Other than for what its specific purpose is and if you can't do that There's no purpose in doing the envelope system because you're just you're just going to be spending money like you normally do you know Anyway, put the money in the envelopes Use it for what's on the envelope right if you have cell phone bill envelope Use you know that's the only thing that money goes to and if there's ever any money left over that can go into your motorcycling envelope or Or whatever, but that's at the end of the month right that's in the beginning of the next cycle That in a nutshell is the envelope system of budgeting And you might do it a different way Technically you don't have to do the whole envelope thing that really hammers it down in your head like I cannot spend more than this Much it's easier than keep receipts and all that stuff once the once there's no more money in that envelope you're out and your budgets exhausted and Say you know a couple months go by and you keep exhausting your budget for a certain item or a certain you know expense Maybe you need to put a little bit more money in that envelope Starting you know your next cycle. Maybe you underestimated. How much you need that or maybe you just need to show some restraint Anyway, that's that is one excellent way to to get Get on the path