How To Spend 90 Minutes A Month Managing Your Money


Here’s the exact system I use to spend only 90 minutes a month managing my money. If you haven’t already set up your Conscious Spending PlanI recommend doing that first.

CATEGORIES OF SPENDING

Use these as guidelines for your spending and tweak as necessary.

Fixed Costs: Rent, Utilities, Debt, etc. 50/60% of take-home pay
Investments: 401(k), Roth, IRA, etc. 10%
Savings Goals: Vacations, gifts, house down payment, cash for unexpected expenses, etc. 5-10%
Guilt-free spending money: Dining out, drinking, movies, clothes, shoes, etc. 20-35%

Now let’s take your Conscious Spending Plan and make it automatic.

To do this, I use a concept called the Next $100.

This means, simply, where will the next $100 you make go? Will it all go to your investment account? Will you allocate 10 percent to your savings account?

Most people just shrug and don’t take any time to think about how their money will be allocated—which means it gets thoughtlessly spent and I sob uncontrollably.

But there’s a better way! It involves actually using the guidelines you established in your Conscious Spending Plan. If you did things right setting up your Conscious Spending Plan, you already know how much money you have to contribute to your fixed costs and how much is left over for investments, savings, and spending money.

So, if you made $100 and your plan resembled the example above, you might put $60 toward your fixed costs, $10 into your investment account, and $10 into savings, and then you’d spend the remaining $20 on whatever you felt like. cool, right? Well, it gets even better, because once everything is automated, that money will be shunted from your checking account right into the appropriate accounts without you even thinking about it.

To see how it works, let’s use my friend Michelle as an example:

Michelle gets paid once a month. Her employer automatically deducts 5 percent of her pay—an amount she set up by talking to her…



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