I’ve always tried to embody the idea that it’s not all about money and that my career will not be chosen out of a desire for financial means. But this mindset has also limited me to not take learning about the game of money seriously enough. What I realized is that figuring out a money system is exactly the way you slowly remove finances from commanding the direction of your life. Thinking more closely and learning how to manage money would actually allow me to be less fixated on it, which seemed very counterintuitive to me, but I’m happy I learned.
Every person needs to intentionally create the financial system that fits their goals and lifestyle and reading this book is the perfect place to start because it is such a No-BS way to explain the context of each concrete piece of advice he gives you for setting up a system. You will learn about what types of accounts you need, where to open them, how to budget guilt-free, how to invest, and get your system running with automation within a couple of months.
The idea is for the system to run in accordance with your goals and to require minimal effort on an ongoing basis. I am continuing to iterate with mine, but I wanted to give an example of what this could look like:
- I use a checking account with Chase with no fees where I keep about $500 in liquid money
- I use an Ally savings account with 6 sub-accounts for different short-term goals (ie: Travel, Startup, Emergency…) that automatically get transferred a total of 10% of my income each month
- I use an Apple Card (considering switching) for fixed costs and pay off automatically each month
- I use M1 Finance for my taxable investments (mid-term) and my Roth IRA Target Date Fund (long-term) and a total of 10% of my income is automatically transferred to these each month (2.5% to taxable, 7.5% to Roth)
Too many people leave money on the table because they are afraid to sit down and learn the basic concepts and get an effective system worked out. One of my favorite concepts from the book is the 85% rule — getting started is more important than being an expert. Creating the habit of being smart with your money and thinking critically about where your money is going is way more important than figuring every detail out perfectly. It’s better to get 85% of the way there than to dream about 100% and actually get 0%.
READ THIS BOOK!!
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