There are only 3 things you can do to level up your money game.
You can protect it, save it and grow it.
PROTECT IT
I worked hard for my financial future and I don’t want to destroy it because I didn’t prepare for manageable risks.
Insurance (disability, life and liability) makes sure if I step on a financial landmine, I don’t blow up my future.
My estate plan makes sure my money doesn’t fall into the wrong hands when I’m 6 feet under.
An emergency fund ensures I don’t have to liquidate investments in a down market which can irreversibly change my financial trajectory.
SAVE IT
If I waste less money on things I don’t care about, then my savings will naturally increase.
I don’t want to waste money on taxes. So I take advantage of 401k’s and HSA’s and Mega Backdoor Roths.
I don’t want to waste money on fees I could have avoided. So I avoid late fees with autopay, invest in index funds and ruthlessly manage my subscriptions.
I don’t want to waste money on things that don’t spark joy. So I don’t eat out for lunch, rarely purchase “it only costs” items and only buy clothes on sale.
GROW IT
After I protect it and stop wasting money on things I don’t care about, I make sure my money is optimized to fire on all cylinders.
I keep as little cash as I possibly can. Even when savings accounts are paying 4-5%, that’s only half what I’ll get in long-term market returns.
I take advantage of market downturns and continue to invest new money even if it might hurt short-term.
I relentlessly track my money by using as few accounts as possible, leveraging technology and carving out 25 minutes every week for qualify control (which is my Money MORSE code process).
So maybe it’s more like I avoid money landmines, don’t waste my cashflow and optimize my Financial Zen Funds.
