“I’m 30 and looking to get on top of my finances. But everyone I know who is good with money is also kind of obsessed with it. They track their spending, use money apps, listen to podcasts and talk about budgeting, etc. Maybe this sounds lazy, but that’s never going to be me. I’d rather put my time and energy into my actual career (I’m a teacher) and focus on what I’m good at and fulfilled by. Is there a middle ground where I could just set up a couple of things where I’ll be OK?
I do have student debt, but thanks to scholarships, it’s not horrible. My salary and benefits are better now I’m working internationally and I want to make it count. I basically try to spend less than I make every month and would love to make the most of this amazing experience financially too!
I’m not desperate to become a millionaire or game the system, even if it were possible for me. I just want to know that I’m not actively disadvantaging myself and I want to keep things simple. I also don’t really have any big, concrete goals as yet like buying a home or having kids. Are there a couple of simple financial things that will be good for me in the long run but won’t take a lot of time or commitment or brain space?”
This is in fact typical of that I hear regularly; becoming intimidated by the amount of effort and discipline that being good with personal finance seems to require, figuring that we’re just not cut out for it, or it’s too much stress! Getting obsessive about finances is sort of like spending all your free hours only at the gym. If you truly enjoy it, and it makes you feel good about yourself, then go ahead. But ultimately, I don’t believe that financial self-maintenance should overtake your life balance.
It’s also common not to have concrete goals. There is no need to feel embarrassed about this; goals get a lot of airtime! There is a school of thought that habits are more important than goals, and many inspirational quotes such as, “People do not decide their future; they decide their habits and their habits decide their futures”, or as Aristole said, “We are what we repeatedly do. Excellence, then, is not a state, but a habit”.
Our habits will make or break us. The point is that the processes you establish, the day-to-day routines that you are able to change, can act as scaffolding for the kind of life you want to have.
Sometimes that can be a worthy goal in itself and more manageable; going to a gym and working out releases endorphins creating feelings of euphoria. Reaching a goal is exciting, but getting in to that good routine’s groove can bring more daily satisfaction.
The takeaway is to focus on a few financial habits that feel doable and not stress about goals. These won’t require a ton of thought or life overhaul, but they do add up.
The first is what many financial advisers call a “money date”. With today’s electronic payments, it’s easy to spend without tracking or accountability. Set limits, check and keep records. Set aside a weekly or monthly time to go over your finances; it can take as little as 20 minutes. Review your bank balance, ensure your bills are paid and survey your expenses to make sure you weren’t mistakenly charged for something. It’s also a good time to look at what’s coming up and think about whether you want to set aside money for it.
Your second habit is to save for emergencies as well as long-term needs; a small amount to set aside regularly with little hassle. Aim to build 3-6 months salary somewhere for easy access. Carefully set the amounts to cover all your expenses, debts, emergency funds, travel and for when you will stop working. Remember, if there are any dependents involved now or in the future, protecting your earnings will be critically important. Then automate it so it’s off your plate.
For now, that’s it! You don’t need to download anything or do the math. Keep simple records, review your money on a regular basis, track spending and stash some cash! Don’t let anyone make you doubt it.
