Three years ago, I started to worry about my money.
😞 I used to live day to day, I had no savings, I didn't invest.
✌️ Now I can go 4-5 months without income and nothing would happen.
I'll tell you how I made the change 👇.
The first thing I did was to SEE how I spend my money.
At first, I did it with a crappy excel and entering my two bank accounts in a very manual way and wasting a lot of time.
Now I do it with monse.app, and I will tell you how.
After creating the account, the first thing I do is to connect my two banks.
Automatically, I start to see the transactions on the web and start assigning categories.
At first, it can be a bit tedious, there are a lot of transactions, but monse learns to assign categories automatically, and then you will only have to do it manually once in a while.
We do this to get important data about our spending.
🤑 How do you spend your money?
There are three fundamental charts that monse gives me.
1️⃣ Month to month evolution: my wealth, month to month, is increasing or not. Am I closer or further away from FI?
2️⃣ How much money do I earn, and how much do I spend each month?
3️⃣ How do I spend money?
Now that we know how we spend our money and how much, let's get down to the basics: paying you first.
When my paycheck comes in, I have 3 automatic transfers:
➡️ a savings account.
➡️ another to an investment fund (in my case, Indexa Capital).
➡️ and one to a daily expense account (debit card).
It is crucial that they are automatic, if you have to do them manually you won't do them.
They should also be immediately upon receipt of your salary. It is money that you should not count on for other expenses.
The amount is up to you. How much you can save.
In my case, I also allocate some of my money to cryptocurrencies, but I'll leave that for later.
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