Lesson #3.4 Be A Money Manager, Not An Accountant (01:30 mins)

Your secret weapon to making a budget that works is to remove yourself from the equation

Stay Focused: One Account, One Purpose

If we are waiting to put the expenses/bills money after it hits our account, then we are likely to splurge as soon as we get the money and bust the budget before it begins.

So separate bank accounts: one account for an emergency fund, one for bills, one for a maintenance fund, and one everyday variable expenses (or any other goal you might have).

Separate bank accounts force your money not to mingle and you are less likely to spend too much on your bills.

Your everyday fund is free for you to use on whatever you want.

You can even get more detailed and have a fun money account so you have even greater freedom.

Automate Funding Your Accounts

And once you have separate accounts, you can set up automation to move funds from your account and pay your bills without your intervention. No more trying to remember when the bill is due or if you already paid it.

I leave nothing to willpower.

I don’t put myself in a situation where I might ‘feel ‘ like being financially responsible.

So I set all my expenses to direct payment.

My mortgage, utilities etc. all get paid automatically so I never have to try and remember if I’ve paid a bill.

Pay All Bills On The Same – So You Only Have To Pay Once

I batch my bill payments together on the same day.

So all my credit cards get paid 5 days after my paycheck.

Same for car note, and rent, everyone (or as many as I can get) comes out on the same day so I can check one
time

Set Up Alerting To Let You Know When You Need To Give A Second Look

If you want to be able to actually enjoy your life and not constantly have to check your bank accounts every day, then you’ll want to set up alerts via text or email (whichever method is most convenient to use) to give you a heads up when something ‘weird’ is happening with your account.

You can set up to get a text message when a check clears, when a deposit is made to your bank account, or when your bank account balance dips below a certain amount.

Whatever you feel comfortable with so you can manage your money effectively and still be able to enjoy your life.