If money management is about saving, knowing what money you have coming, and what money you have going out, the best way to achieve those three fundamentals is to set up systems. Systems are basically a series of steps that you perform for processes that you repeat often.
An example of a system might be something simple like making a pot of coffee. When you make coffee you repeat the same steps over and over again. You gather your equipment including your coffee, scoop, paper filter and coffee machine. You place the filter in the coffee basket. You fill the filter with three scoops of coffee. You fill the water receptacle with six cups of water. You place the coffee pot under the basket and push start.
It’s a simple and repeatable system. You can apply the same organization to repeatable financial processes like saving, budgeting, and paying bills.
Setting Up Reliable Systems
Systems support you to:
- Automatically save – You can set up a system using your bank technology to deduct money from your checking account on a regular basis. The money can be placed in your savings accounts and retirement accounts to support you to achieve your savings goals.
- Control your money – You can use technology and systems to transfer all of your income and expenses automatically to a budgeting tool. You can review your budget once a week or once a month to see where you stand in terms of your spending and your earning. That information takes us to the next step where systems can support you, and that is to make educated decisions.
- Make smart money decisions – Imagine you are standing in a furniture store and you’re getting ready to buy a couch. You don’t know how much you’ve spent this month. With a budget and systems in place, all you have to do is review your accounts and see where you stand. Systems help you make smart financial decisions, stay out of debt and save more money.
- Earn more – Ultimately, system support you to earn more. Whether you’re earning more in interest or you’re earning more in income, systems can support you to leverage your money from all directions.
- Investing now – There’s another component to good money management and that is to start investing your money today. Don’t wait.
Let’s use smart strategies like these to become wise money stewards and establish strong financial legacies.
Cheers to your money managing and wealth building journey!