Nobody likes when things get complicated. We like it simple.
When it comes to managing money though, complicated is what most people get; especially when more is going out than coming in.
Generally, people fall into 3 camps when it comes to managing their money;
1. The Ultra-Budgeters with their turbo-charged spreadsheets.
They know exactly where every dollar is going with their finely tuned calculations. Takes a while though and it's definitely not the way to spend a Saturday night.
2. The Never-gonna-eva Budgeters with their head buried in the sand.
These guys wouldn't have a clue - and that's the way they seem to like it. They save time on keeping track of their money - but the good times stop when they don't have money for those bills that just keep rolling in.
3. The rest of us.
These are just the people in the middle - no fancy name required. I've met a lot of people who have a pretty good money management system that works for them, and even though they come in all shapes and sizes, it's still a manual process. Mostly, the system they use will generally track the basics;
Money in (income).
Money out (mortgage/rent, groceries, fuel, entertainment etc).
Are they spending or over-spending in areas.
Are they saving anything after each pay (and they set it aside!).
All 3 of the above could do with a simpler money system than what they're currently using. One that will sync with their bank account, automatically tracks all money in/money out and will help them spend safely. Sound good? I'll cover this free app in the next post.
Shaun O'Keefe is a fee-based financial planner serving the families of the Peregian community to help set themselves up to build and successfully transfer their wealth between the generations. While some advisers focus specifically on investments or retirement planning, he's chosen to focus 'Financial planning for the whole family’. Subscribe