Simplifying Money Management

budgeting finances May 28, 2021

Taking ownership of your life is a massive shift for some people.  Taking ownership of your money can be as well.

You see, people don't realize that being in control of their money is actually an option. 90% of people react to money. It comes in, they spend it. The bill arrives, they pay it. Your employer wants you to work overtime, you do that. Each example is a snippet of how reactive we really are. Picture a horse being led around by a rope. They go where they are led, right? Exactly. And so do the majority when it comes to money.

Have you ever considered being proactive with your money? Making decisions based on your predetermined values or goals instead of what you are "led" to do? This shift influences all other decisions you will make in your life. This is big, right?

Here are 4 tweaks you can make to your finances that will get you back into the drivers seat with your money. Vroom!


1) Instead of paying the bill when it says it's due or when it comes in, what if you organized all your bills and decided that one day, of each week you were going to sit down and pay that week's bills? Each week your money management will take only 5 minutes AND you don't have to spend ANY more time thinking about money for that entire week. Try the 7, 14, 21, 28 for a consistent spending plan and voila, never worry about paying bills or worrying about them getting paid on time again.

 

2) Many people look at multiple bank accounts daily, checking that there is enough money for a purchase or transferring from here to there. You can use one account for bills and another account or two for savings for different purposes. Separating our monies allows us to SEE progress and not worry about if there is enough money for a purchase or expense.

 

3) Make sure your priorities are being paid automatically and consistently. For instance, instead of paying your taxes twice a year, why not have them set up monthly as a pre-authorized payment? Tax arrears can cause crisis down the road so this is an important one.

 

4) Use cash for spending or decide ahead of time what you need for gas, groceries and spending money. This way you will get a feel for what your spending looks like and after a couple months you can get back to using the convenience of debit cards but you will have created a new routine of consciously choosing your spending.

 

Creating consistency and routine sets us up for success. Irregular payments actually mislead people about their cash flow.... payment terms such as weekly car payments, bi-weekly mortgage payments, anything that is irregular keeps your attention more often than necessary, you checking, you worrying, you dipping into your credit often as well. Remember those extra pay months we used to have? You CAN have them back again when you stick to monthly everything. Less is more and simplifying your finances also retains the most amount of your energy and focus.

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