Take Control of Your Finances

If you know me, then you know I am terrible when it comes to money. I love pissing it away on gambling, booze, fine dining, fantasy sports, etc. Even worse I do not balance a check book, rarely look at my bank statements, and I do not really have much of anything for savings. With the birth of my daughter I knew this was going to be one of my biggest challenges if I was going to maintain the style of living I have grown accustom to. I realized that I need to insure my life to protect for my daughter, I needed to start planning for the future. Both in terms of mine (retirement, travel, house, marriage) and hers, (college, summer camp, piano lessons etc.)it certainly wasn't going to be easy.

I then stumbled upon a blog I had not frequented in a while and they had this great post about Automating your finances. See link below. Anyways the basic principle is you pay yourself before you do anything else, and with the money left over you are free to spend it any way you wish. If i want to blow a couple hundred playing cards, or drinking with the guys, or going to that really expensive restaurant, I can do it as long as I have paid myself first. Seriously it will be easier to follow me if you read the blog post. Anyways, I am still in the process of making this work for me, and I have a long ways to go. But I am now 3 months in to this switch and I already can see the differences. I actually am seeing a savings account grow, making sure I have everything else covered, and still able to do get crazy once in a while. In that time, i have finally started banking online (I know right) have all my bills directly paid from my checking account (though I am looking into some sort of rewards based credit card, to pay all my bills), I have set up two life insurance policies, one in which will build cash value, and I have also set up a Roth IRA that automatically takes from checking each month. This seems like a lot to do, but I have probably spent 3 hours total getting all of this automated, and now I maybe check my bank statements 2 to 3 times a month, but I am totally covered. No need to worry about the nasty letters for un paid bills, no need to worry about bouncing the occasional check, though I still cannot figure out how to cut checks online.

Anyways, I wanted to share this with you because I really feel, that one of the biggest problems with people my age, is the have no hold on there personal finances. I work at a company in which less than half of the employees take part in a 401K plan. I am starting to learn that creating wealth and long term financial stability, is as easy getting on top of your personal finances, and paying yourself before you go out to the bars, or buy a new pair of shoes. I sure as hell know I don't want to work until I die, and automating my finances I believe is the first step in ensuring that doesn't happen.

Link