Did you know that 85% of my financial freedom plan is automated?
This means I don´t have to give a moment´s consideration to these vital parts of my finances:
- My credit card statement balance is automatically paid in full on the due date (helping me maintain a strong credit score).
- All of my bills are on autopay (also good for the credit score).
- My retirement savings is automatically taken out of my paycheck and invested (wealth building & retirement).
- My savings (to numerous accounts) is automatically transferred on the 3rd of each month (satisfying short term dreams).
The effort and work that makes all this possible each month = ZERO minutes. It did take time to set up these systems and bill pay but it was worth it.
How is all of this possible?
Twice a month I pull my transactions and update my budget. This usually takes about 10 minutes to enter all of my spending for this two week time period. At the end of the month I spend a few extra minutes reviewing my spending, saving and investing as I close out my budget for the month. Full disclosure, I usually have one or two categories that I overspent; nobody is perfect! I review and try to course correct the following month.
So once you learn the basics and set up your systems, the Road to Financial Freedom is not labor intensive. We want our finances to amplify our life, not consume it. Using a budget to align your spending with your goals is freedom. If you can set up these systems while you are young and stick to them, they will pay dividends later on as your wages increase.
So create a budget and give it some love each month. I promise it will be worth it.
Shout out to my mom and dad for putting me on the budgeting path in high school!
Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this newsletter.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!
