Mel Robbins

I'm not good with math.

What are other things that your students say, Ramit, that really crystallize a terrible psychology around money?

Or my husband took care of the finances.

Hold on, the CSP was that conscious spending plan of the four things.

Holy cow.

Ramit is full of incredible advice.

And I'm sure as you were listening, you're like, oh my gosh, oh my gosh, oh my gosh.

And I want to remind you, the link to that complete episode is in the show notes if you want to dig in deeper.

But let's focus on what he said.

There are four buckets.

And that's the only thing that we need to worry about right now.

And these buckets are so important that I want to list them off one more time for you to make sure you really got this rule of understanding where your money needs to go once you understand how much money you have.

So first bucket, fixed costs.

That's rent, mortgage, utilities, insurance, car payment, minimum debt payments, groceries.

These are the things that you have to pay.

And I also want to remind you of what you learned from Tiffany Aliche, that there are all sorts of these silly things that you do not need in your fixed budget, like glass containers on Amazon, that we are all buying.

They feel like a necessity.

They are not.

Fixed budget, very black and white.

It is the things you must pay and cannot live without.