Budgeting Basics That Build Wealth

Jordan Ellis

Welcome back to The CEO Pod! I'm Jordan Ellis, and today, we're gonna dig into budgeting—yeah, I know, not the sexiest of topics, but if you’re hoping to build real wealth, it’s kinda where the magic starts. So, you hear about all these methods—the 50/30/20 rule, zero-based budgeting, envelope systems… it’s enough to make your head spin, right? Let’s break ‘em down and figure out which one might actually stick for you.

Jordan Ellis

So, the 50/30/20 rule is pretty straightforward: 50% of your take-home pay goes to needs, 30% to wants, and 20% to savings or debt. It's simple, and I reckon it's perfect if you’re just dipping your toes in and want a ballpark framework rather than a spreadsheet that makes your eyes glaze over. Then you’ve got zero-based budgeting, which is honestly for the detail-lovers out there. Every pound—and I really mean every single one—gets assigned a job. It’s like, you’re the conductor and your cash is the orchestra. Me? I tried it. Got halfway through the second month and realized my orchestra had gone rogue—my Friday night pizza habit was eating up more of the budget than I cared to admit.

Jordan Ellis

Oh, and the envelope system! I still remember being a baby bank teller and thinking it’d be a piece of cake. Just put your cash in physical envelopes: one for groceries, one for bills, one embarrassingly labelled “Late Night Takeaway.” Thought it would be genius—until I had to physically hand myself the last tenner at the pizza place and actually argue, out loud, with an envelope. Highly educational moment, that. But you know, envelopes—or the digital equivalent—work wonders if you want that tactile feeling of, “Once it’s gone, it’s gone.”

Jordan Ellis

Bottom line: a beginner budget should be clear, flexible, and realistic. If your numbers only work out if you suddenly swear off coffee, random online shopping, and birthdays, you’re kidding yourself. Pick a system that fits your habits—not one that just looks good on Instagram.

Jordan Ellis

Y’know what trips most people up? Overestimating their willpower. Like, you create a budget and think, “Oh, easy—I’ll just never get another drive-through coffee,” then three days later, you’re crawling back to the barista for mercy. Underestimating those tiny expenses, or pretending a surprise bill won’t show up, is a classic faceplant. Setting vague goals doesn’t help either: “I’ll save more” isn’t as motivating as “I’m saving £300 for a fall camping trip.”

Jordan Ellis

There are ways to keep yourself honest. For one, automate what you can—standing orders, automatic savings, whatever makes it harder to ignore your plan. I also love visual tracking—it’s not just for kids; fill in a chart, use an app, stick a progress bar on your fridge. And don’t be shy about tweaking your budget as life happens.

Jordan Ellis

I’ll never forget helping a single mum sort out her finances at the bank. She had envelopes labelled “Food,” “Rent,” “Other”—which tells you nothing. We relabelled them with real-life stuff—like, “Kids’ School Shoes,” “Emergency Snacks,” “Bus Passes.” Suddenly, she stuck with it, because she knew exactly why every pound was going where it needed to. Personalizing it made it real.

Jordan Ellis

The best budget in the world—if it sits untouched in a drawer—won’t do anything for you. The trick is turning it into a habit, not a punishment. Regular money check-ins—every Sunday evening, maybe, five minutes with your numbers and a cuppa. And seriously, give yourself credit for the little wins, too; resisted a splurge? Noted. Found a fiver in your coat pocket and stuck it away for savings? You legend.

Jordan Ellis

Look, surprises are gonna happen. Medical bill out of nowhere, or maybe you get tempted by a spontaneous road trip with your mates. That doesn’t mean your budget’s blown to bits—you just make a quick adjustment, like, “Okay, groceries are DIY this week,” or “We’ll cycle to work for a few days.” And I always think of jazz, ‘cause I love it—you plan your theme, but the solo goes wherever the tune leads you. Your budget's gotta have that improvisational energy. It bends, but it doesn’t break.

Jordan Ellis

Let’s talk about tracking, which is where the rubber meets the road. Pick one day every month—last Friday, first Monday, whatever—and tally up your spending. How close were you to your goals? Did you overspend, or maybe come in under? No judgment zone here, by the way—it’s all about learning, not lecturing.

Jordan Ellis

Budgeting apps are great for this—you can spot trends at a glance, whether takeaway is sneaking into “needs,” or your streaming subscriptions are multiplying like rabbits. If you’re old school, even a plain spreadsheet works—I’m a bit of a spreadsheet tragic, so I get it.

Jordan Ellis

Most important thing: Be willing to revise. Got a new job, just moved, or your priorities changed? That’s real life. Update those budget numbers so the plan keeps fitting your actual situation, not the version you wrote three months back.

Jordan Ellis

So, here’s the secret sauce: smart spending is how you actually build wealth, not earning a million and blowing it faster. The first step is spotting your spending triggers. For me, it’s whenever I get an email that says “limited-time sale.” Suddenly, I’m Googling reviews for things I never knew I needed. If that’s you, try the old 24-hour rule—wait a day, and half those urges will pass.

Jordan Ellis

Set very specific goals. Saving for a new laptop, or a holiday in Spain? Name that goal, break it down, and then automate your contributions bit by bit. Couple of quid here, a tenner there. Over time, you get this snowball thing going, and suddenly you’re booking tickets or picking up a shiny new gadget, guilt-free.

Jordan Ellis

And keep reviewing—do your spending habits match your priorities? If you catch your lunch budget creeping up, but you don’t even like what you’re eating, that’s an easy fix. Mindful spending’s what moves you from “budgeting for budgeting’s sake” to “budgeting for freedom.”

Jordan Ellis

Look, budgeting’s as much emotional as it is logical. Ever feel guilty for splurging, or panicky about what you’ve spent? You’re not broken; you’re human. Start with positive reinforcement—notice what’s working, don’t just beat yourself up for the odd misstep. If guilt crops up, reframe it: you’ve invested in something you valued at that moment, now you know for next time.

Jordan Ellis

Life gets messy—unexpected dentist bills, the boiler dying in January. This is why an emergency fund is your best mate. Even stashing away a few percent of every paycheck builds your safety net. That way, a surprise expense won’t send you careening off plan and straight into “ah, forget budgeting, it never works for me.”

Jordan Ellis

Get yourself a cheerleader—someone who knows your goals, can check in, and give you a nudge when you need it. Could be a mate, a partner, or a group online. Trust me, it helps to know you’re not slogging through this alone.

Jordan Ellis

If you’re still wrangling receipts and highlighters, bless you—but honestly, there are easier ways. Budgeting apps can link to your bank account, categorize spending, and tell you in real-time how you’re tracking versus your plan. Some even show you graphs, which is oddly satisfying.

Jordan Ellis

Notifications and alerts are underrated—set them up so you know if you’re closing in on your weekly coffee budget or your savings target. Gone are the days of accidentally bouncing a bill because you forgot when it was due. These reminders take the sting out of budgeting, so it’s less “teacher with a red pen,” more “helpful mate whispering, ‘Oi, your Netflix bill’s tomorrow.’”

Jordan Ellis

Try out a few digital tools—see what feels right. There isn't a trophy for sticking with the same app for life, so don’t be afraid to swap if something doesn’t click. Make it fit into your daily routine, like brushing your teeth, rather than looming over you as “that thing you should really do but never actually get around to.”

Jordan Ellis

Alright, let’s zoom out a bit. If you’ve got your basic budget ticking along, next step is supercharging it for future wealth. Look for ways to boost your income—negotiating a raise, picking up a freelance gig, selling old stuff online. Every extra bit should have a job in your budget: maybe more into savings, debt, or that first investment account.

Jordan Ellis

Here’s an underrated move: pay yourself first. Set up an automatic transfer the day you’re paid—before rent, Netflix, any of it. Out of sight, out of mind, in a good way. Even a tiny amount adds up over time.

Jordan Ellis

Don't be scared of basic investing. You don’t need to know everything about stocks or bonds to start. Dip your toe into a retirement account, or an ETF or mutual fund if you’re just beginning. The key is steady, small contributions—think of it as planting seeds. Give it time, add a bit of sun and water each month, and you’ll have a nice little garden before you know it.

Jordan Ellis

Last thing I wanna leave you with: consistency beats cleverness, every single time. Set up those automatic investments—retirement, robo-advisors, whatever matches your risk tolerance. Don’t stress about timing the market if you’re just starting out. It’s the regular, automatic contributions—tenner here, twenty there—that build momentum.

Jordan Ellis

Look into beginner investment options like target-date funds, which are designed for people who don’t want to fiddle with investments every week—you just choose a rough date you want to retire, and it rebalances as you get closer.

Jordan Ellis

Set a reminder every few months—could be quarterly—for a quick investment check-up. How’s it doing? Is it still right for your goals? If you need to rebalance, do it with the same calm mindset as you do with your budget: no drama, just tweaks. And that’s it for today—keep reviewing, keep adding, and let those habits stack up over time. You’re laying the foundation for real, lasting wealth. Thanks for listening to The CEO Pod—next time, we’ll dig into negotiation tactics you can use every day, not just in the boardroom. See you then!