Like many people, every year I would put a budget together. It was one page (not dated) that had income at the top, expenses at the bottom, and net income at the end. No name, not even a date. Just “Monthly Budget”. Implementation was a mystery. I always struggled to have enough cash at the right time to cover expenses when they were due. Or I would run out of money for variable expenses (groceries, gas) before getting to the end of the month. And savings? It was always pushed to the end of the month, and was an afterthought after money was used on everything else. I was loyal to putting a portion of my payroll into 401k for retirement, but in my daily life, I had cash issues (despite making a good salary) and a dwindling motivation to budget since it wasn’t working.
I created RTYT after personally solving the budgeting mystery for myself. For me, the solution was a more detailed budget (12 months, not just one generic month) that included periodic expenses (like Christmas), weekly cash plans, and projecting my cash balance months in advance in order to catch any moment when I risked running out of cash. I literally wrote out the entire month’s cash flow from the day I started to the end of the month, and kept going for 12 months in advance. I finally knew what to spend when. It was all written out like a recipe. And saving became decisive, rather than reactive. I knew exactly when and how much could be saved in cash as a cushion against any emergency. Implementation followed the plan, and any amount of adjustment today changed the recipe for tomorrow. But I could see it today and adapt as needed. This really worked: obligations got paid, I never ran out of cash, debt was reduced, and my cash increased to levels I never had before.
As I shared my plan and its success with my family, a few family members asked me to put a similar plan together for them. The system worked for them as it did for me, and each commented how much stress, anxiety and guesswork was removed as a result.
I knew RTYT was a special system that filled in the gaps left by the traditional static budget templates that are provided by so many books, software programs, and web sites. Cash flow is a critical element of success. With that figured out, it was time to offer a better way of managing cash to the American consumer. RTYT was born.
It wasn’t enough just to show consumers how to manage the cash they have. Fundamental to RTYTs beliefs are building cash and reducing consumer debt. Debt reduction and cash accumulation (i.e. a six-month Emergency Fund) are built into every budget we design. When these two components of financial life are addressed, you are richer…no matter the size of your income. You are not only richer, you are more financially independent. You have less stress. You sleep better. You are more secure. You are freer to make decisions about where you want to work, where you want to live, how you want to spend your time. You are less vulnerable to the decisions of others. You are in control of your money, it does not control you. Your lot in life is improved. You feel richer because you ARE richer.
RTYT now includes small businesses among our clients. Our budgets and business plans for small businesses include specific revenue/sales targets, as well as framework for expenses to help ensure steady cash flow and monthly/yearly profits. The guesswork and juggling removed as a result of the plan enables owners to spend more time ‘on’ their businesses rather than only working ‘in’ their businesses. We enjoy having a product and service that meet the unique needs of small businesses.