In this short video, the presenter introduces a simple three‑category budgeting system to help viewers understand and control their finances. Expenses are labeled as B (bills – mandatory payments that can lead to legal action if unpaid), UB (usage/utility – variable bills like water, electricity, phone data), or C (cash/choice – discretionary spending such as groceries, grooming, entertainment). By sorting all expenses into these groups, viewers can quickly see whether their financial strain stems from insufficient income (most money in B/UB) or overspending (most money in C). The presenter then advises that if the problem is overspending, the C category should be trimmed, while if income is the issue, cutting bills is not the solution. The segment also touches on the mindset of “frugal people” who may over‑react to tight budgets, emphasizing that simply becoming more frugal isn’t always the answer.
Chapters
Categorize your expenses into 3 categories. One, I want you to write a B next to all the bills on your list. So bills are if you don't pay it, someone's gonna come knocking on your door and say, where's my money? Right?
Yeah.
So put a B next to all those things.
And give me an example. I know that sounds like a basic question, but is your mortgage a bill? Yes, mortgage is a bill. Rent, car note, student loans.
So if you don't pay, you're likely to be sued. Think about that. Gotcha.
Like when you were like standing at Walmart or Sephora and you're like, yeah, I'd like 10% off this. And then you're like, oh wait, that's a credit card.
Yes, that's a bill. So a B next to all your bills. Okay. And then, and those are really like fixed expenses so that way you understand, right? And then I want you to put a U in front of any B that fluctuates based upon your usage. Oh, I love that. So I call these like the U stands for usage or utility.
So your student loan does not have a U. Your mortgage or rent does not have a U. No. But the— Water. Water. Electricity.
Oh, yeah. So your usage— Yes.
The data on your phone bill.
Yes. And so it's important to separate those two because I want you to— you'll see that I want you to understand the level of control you have on these expenses. And whatever is not a B or UB, everything else is a C. C stands for cash or choice, meaning that you have full choice of how you spend here. So grooming might be left over, groceries might be left over. How much eating out with friends? Yes. And so entertainment. And so now before you get to slashing, I want you to ask yourself, where is most of your money going? For many people, most of their money might be going to the Bs and Ubs. But for some people, it's actually all the Cs. Yes. So then I— then we have to identify do you have a don't make enough issue or spend too much issue? And so if most of your money is going to the Bs and Ubs, you might not make enough. So it's not about slashing because these are your bills, you know. But if most of your money is going to your Cs, your choices and your cash expenses, then you probably have a spend too much issue. So now we need to slash.
Yes.
You know, because it's entertainment and grocery and, and all those things where your money is going. Because what I find is that frugal people want to get more frugal. When things are tight. I'm like, that's not the answer.
