Winning on Payday: 2 Quick Actions to Boost Your Finances Right Away

In this week’s edition:

• The Game Changing realization 

• Why One Hour

• The Routine

Every time I get too lazy to follow my Personal Finance Routine I remind myself it took me 6 months to realize my old flatmate wasn’t paying me his part of the rent.

Six… whole… months… 

So, yeah, having healthy financial habits didn’t come naturally for me. The good thing is if I can do it, almost anyone can.

This has never been more important in our lifetimes than now. 

The past few years of accelerated inflation are making it harder to cover living expenses; let alone save, buy a house or vacation.

The result: 72% of adults report feeling stressed about money at least once per month. 17% reported worrying about money every day.

A healthy Personal Finance routine won’t magically solve all your problems. But, it’s a damn good start.

And, it starts the second your paycheck hits your bank account.

That was the Game changing realization and that was the pledge I made with myself: Within an hour of getting paid, I will take every step necessary to set myself up financially. 

No excuses. No waiting until the end of the month to see what's left over. This is my future, and it deserves priority.

Why One hour?

I don't know about you, but the longer I wait, the likelier I am to spend impulsively.
Your paycheck hits, you suddenly feel richer. You see an ad for limited edition Batman Sneakers and think, "I definitely need this."
Even worse, the longer I wait, the less likely I am to take these steps at all.

By acting within the first hour, you take control and set a positive tone for the rest of the month.

I can’t stress how important taking action asap is.

The Routine:

I get paid in the morning and do two things:

1. Update my Net Worth Statement Update

2. Money Management: Send money to where it needs to be.

Maybe you get paid during work hours. That's no problem. You can automate the transfers.
I like to do it manually because I want to spend time with these reports and manual changes just feel more “real” (but that’s just me).
Even if you get paid later in the day, setting aside a dedicated time for this routine is key.

Update my Net Worth Statement:

This is where I take a snapshot of my financial health. I update all my accounts – checking, savings, investments, loans, credit cards – to see the big picture.

It gives me a clear overview of where I stand financially, helps me track my progress over time, and provides a moment to reflect on my financial decisions.

Next, my paycheck gets sent to where it needs to be.

Money Management:

The exact steps you need to take will depend on your priorities.
Money should be doing four things for you:

• Cover your expenses (groceries, rent, insurance, debt repayment)

• Protect you from emergencies (unexpected car repairs, sudden job loss)

• Work for you (investments, retirement savings)

• Improve your quality of life (travel, hobbies, "treat yourself" fund)

Details will vary, but essentially, here's where your money should go within one hour of getting paid:

• Monthly Expenses Account: My wife and I have a joint account we transfer money to for monthly expenses. It makes it easier to track our spending. If you're single, it could still be worth having a separate account for monthly spending to help you stick to your budget.
  

• Financial Priorities Accounts: Send money to your Emergency account, brokerage account to invest or maybe to a savings account for that house deposit.
  

• Fun Accounts: Money saved up for the fun stuff. My wife came up with a "Treat Myself " Fund to save for larger personal purchases she would otherwise feel guilty about. We also have a separate "Adventure Fund" for travel. 

Remember: The most crucial part is to establish a routine and stick to it. Make it a non-negotiable part of your life.

It might feel a bit forced at first, but trust me, the peace of mind it brings is worth it. Once you start to see your finances improve and your financial goals become a reality, you'll be glad you took that first step.

Not sure where to start with your own priorities? I've got you covered. 
I'm launching a Finance Fast Track Template in 14 days which will include: 

• Three essential monthly templates (Net Worth Statement, Budget Template, Expense Tracker)

• An automated financial priorities report. 

Get an early access price of $10 (75% discount!) when you pre-register today! 
Simply respond to this email to sign up and take the first step towards financial clarity.
If you have Loved ones who would benefit from this, feel free to share this newsletter with them so they can pre-register too.
Let's get you building your Financial Peace of Mind.

The information contained in this newsletter is for general informational purposes only. It should not be construed as financial or investment advice. Please consult a qualified financial advisor before making any investment decisions.