What’s up Smart Money Crew. Due to popular demand, we will be starting a segment on the show called “Veggie Tales.” This is the section where we get real about money, saving, and investing where we take out the flash and bang and get into the nuts & bolts. Nobody is born enjoying their veggies but if we build good habits around eating them, they take good care of us over the long term.
As John Dryden once said, “we first make our habits, and then our habits make us.”
1. Today’s Topic is on Budgeting & Tracking
a. You cannot hit a target you cannot see. Tracking is the first step to bringing financial awareness to your life. Just like a bodybuilder getting serious about working out and getting in shape, he tracks how much he eats, what types of foods he eats, and the workouts he performs. If you don’t track, you are driving blind.
b. The good news is in today’s day & age, tracking has never been easier. From electronic credit and debit card statements to applications designed to analyze and categorize your spending habits, tracking has never been easier. Start there. There are many great free apps like Mint or even your own banking app might offer these services. We are not Sponsored by any of these apps although if you would like to work with us here at Smart Money, please do reach out.
c. Simplify your life – cut those 10 credit cards into 2 or 3 depending on the category of spending. Schedule time on your calendar every month to review your statement. How much are you spending on what? How much are you making through your job, investments, etc.? How much are you netting? If this is the first time you’re doing this, you will most likely be shocked. Take away the flash and bang and you’d be surprised what’s left. It sounds sexy bragging to your friends that you make half a million but after taxes and deductions you’d be surprised how much actually ends up yours.
d. You cannot start investing until you start saving. You cannot start saving until you track how much you’re earning and how much you’re spending.
e. This is the least sexy part of making money. People love seeing and hearing about the Lamborghinis, the yachts, the private jets. The fact of the matter is truly wealthy people generally did not get there by flaunting it. Just Youtube Jeff Bezos Honda. The man was a billionaire and still driving a beat-up Honda Accord. They lived below their means consistently - day in and day out and ran a consistent budget surplus – something our local and federal governments should actually learn from.
f. Forget what the clowns you see on Instagram are doing. Track your progress, compete against yourself. You don’t start going to the gym and start trying to compete against Arnold Schwarzenegger in his prime. We are all running our own race. Leave judgment, guilt, and shame at the door. You will most likely be shocked at how much you are actually taking home at the end of the month. Awareness is the first step to change. Be patient with yourself, but also disciplined. As Jocko Wilink likes to say, self-love starts with self-discipline. Know that eating your veggies is better for you in the long-run even if that fast-food meal looks oh so tasty!
g. So this concludes our first episode of Veggie Tales – tune back in for the next episode where we will talk through the 80 / 20 of investing and why day-trading or other speculative activity is a loser’s game.
As always, this is your host, thank you Smart Money Crew for your support – until next time, track your spending and be well. Peace!
