I believe that systems beat goals and habits beat checklists. In order to incorporate personal finance consistently into my process, I’ve used a few techniques. One of those is to turn the activities into habits. The other is to tack those onto already existing habits I already perform regularly.
- Track Net Worth Religiously
- Never less and never more than Monthly. This is my minimum monthly check in.
- I must check 7 accounts to get 12 numbers that updates my monthly assets and liabilities to come up with my adjusted net worth for the month.
- While I typically do far more than this each month, this is the minimum
- Also, this is the minimum I force my wife to provide each month on her accounts. She’s not nearly as into PF as I am, so this was a fight. But I convinced her that her giving me her 7 numbers every month was reasonable – if only to keep us aware of where we are as a family.
- Track Spending Religiously (Monthly – or quarterly if I fall off track.
- I use combination of quicken and spreadsheets
- Maintain a Budget. Review monthly
- Even if I don’t follow it monthly, I have a budget that I set up at the beginning of the year that I can track to.
- Hold regularly scheduled family meetings
- I have a set schedule for the year that outlines what I want to review, discuss or decide for each month.
- Every month is slightly different, and some items repeat either quarterly or bi yearly. Example, taxes review in Feb, Will in September.
- Regularly learn about money, finance, and business.
- Read 6 books per year in finance, personal finance, investing or something related
- Blogs. Websites. Magazines.
- Regularly discuss money with others I can learn from.
- Already rich folks. People in finance fields.
- Track Ratios
- Set these up in the beginning of the year and updating my BS|IS automatically updates the ratios
- Pay something extra on my mortgage every month. Even if it’s just a few bucks.
- Open bills as soon as they arrive.
- Place them in a place where they are easily found.
- Apart from doctor/healthcare bills – which have deduction / insurance ramifications – pay the bills as soon as they come in.
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