Life Operating System: Part 1 - Budgeting
In this series I am explaining the system I use to operate my life. Beginning with how I manage my finances.
This is my first OS post because this will help us sort how far you want to go down this list. If you don't want to invest in this, stop here and look no further. I say this because what is measured is managed and while it is important to be physically active and fit, you don't need to track your fitness to get the results. With finances, tracking is very important and the easier it is to do so the better results you will see.
Today's Action Steps:
Download a budgeting app
Connect your bank accounts into the app
Categorize your finances
There is REAL value in managing your finances and tracking what is going on with it. Unfortunately our public school system does not cover this and most young adults enter the world asleep at the wheel. They haven’t been taught how important it is to keep an eye on your finances for bumps on the road.
Let's go over the biggest advantages of using any budget software.
You see how much you spend vs how much you make.
Did you end last month with some money to go into savings or when you need to replace your tires? Maybe you ended with a net gain of $5. (Is that a win for you?) Budgeting software like Monarch does this all FOR you. All you need to do is link your bank credit cards to the software.
You know where your money is going.
What you spend money on highlights what your priorities are in life. If you spend more money on fast food than groceries that is a CLEAR indication that you value convenience over health. If you spend money on video games or alcohol instead of a gym membership, you guessed it you don't prioritize your health, you prioritize short term gratification.
Planning for emergencies and vacations
You can set goals for each month and even link accounts to track your goals for savings. $100 per month can add up quickly for that trip to California with the gang or repairing your car if you're in an accident.
The BIGGEST Advantage
You won't go to sleep wondering if you will have enough to pay your bills. You have a system in place that if you follow, won't lead to a unforeseeable disaster with your finances.
This is All Automated
I can't speak for all budgeting software, but most will connect to your bank and the most work you will have to do is sort through transactions and classify them into where they belong. This gives you time to go chase your passion, create memories with loved ones, and breathe.
Monarch is my favorite budgeting app. I used Mint for years and when they closed down I looked at several and tried a few before settling on Monarch. If you are serious about managing your money in a meaningful way I have promo code for you below.
https://www.monarchmoney.com/referral/iitqvyu9zo
Next time I'll be going over the easiest way to get started budgeting. How I break down categories, percentages and your ideal number to save every month. Make sure you follow, subscribe or send a raven to be here when I drop it! (We will be using Monarch to set this up, but any app works as well.)
~ Average Ninja
PS. You can also go on YouTube and search "how to create a budget" there is great content out there that will help you get started! While you’re there subscribe to my channel!