A Money System For Practical Spending and Stress Free Saving

0:00Raise your hand if you've ever checked your bank account and thought, where did all my money go? To end the wonder of what's happening to your money and knowing exactly where it's going, you need a money system. One that's easy and simple for the life you're living today. And you're in luck. Today's episode is all about creating your money systems to help you have simple, easy control and no longer have to depend on willpower.

0:35Hey there and welcome to Wealthy After 40. I'm Dalene Higgins, your podcast host and financial coach. If you're a Gen X woman or couple who's worried about retirement, maybe you feel like you're starting late or don't have enough saved, you're in the right place. This show is all about ditching the financial stress and creating a retirement plan that works for your life now and later. So grab your favorite drink, settle in, and let's figure this out together.

1:12Welcome to today's episode, part two of four. We did the overview. We did part one last week. So this is part two. And what I'm talking about, in case you're new here, is there are four phases in my retirement ready framework. And today we're talking about phase two, which is your money systems. So if you missed part one, go listen to that last week. If you want a quick overview, that will be the week before. And again, next week, we're diving into three and then four. So stay tuned, lots of fun diving into all of the things that help you get to retirement. So why do systems matter more than willpower?

1:58Now, if you remember, I recently did an episode about discipline. Discipline, willpower, willpower probably has a better definition. I didn't look it up like I did discipline where it's really not a great word to use. So go find that episode. I'll link it down below. But anyways, when you are relying on willpower, some of this shows up as, okay, I'm just managing the money in my head, right? I'm keeping track of, oh, I just spent here and I just spent there. Do you not already have enough to worry about? The mental load of adding that on and keeping track of that and really relying on your bank balance does not work, right?

2:45If you're like, okay, I've done this, I've done that, I should have$500 left over that I can then move into savings. You are not going to have$500 to move into savings. And you probably can shake your head and agree with me. So relying on your bank balance doesn't work. And you know, this is because I mean, things are really quick to the T nowadays. But if you have a subscription coming through, and you don't remember, because it's only paid four times a year or whatever, That gets to be a lot of mental math, a lot of mental load. But systems are going to help you create predictability. You're going to know when that time is for that subscription to come through.

3:32And it's going to help you remove decision fatigue. Think about all of the decisions you are making in life today. right to survive. I've got to plan a meal. I've got to decide where I'm going. I've got to make that doctor's appointment or all of the things right whether it's for yourself, your spouse, your children, whatever it may be, church. It can be anything that you're having to support and create decisions. So being able to create a system for your money that simplifies it, makes it easy, and helps you create predictability? Are you thinking, yes, sign me up? Let's dive into what a money system truly is in my phase two of the retirement ready framework.

4:29So in your money system, you will have a budget framework. Now, why am I calling it a budget framework, you have a static piece of paper saying this is all of my money in these categories, this is how much, right? It's all detailed, but we don't need that detail for tracking. So then what we do is we align those categories and large categories and create multiple bank accounts for tracking. We don't need to do a check register style of transaction history anymore, unless you're running a business. Okay, I'm going to put that little caveat in here. For personal, you've got these bank accounts, there's lots of things going on, you can keep receipts if you want, if you're one of those individuals that likes to check off and do all of the things.

5:24It's just being able to track with ease and simplicity in the digital age. We've got to move to the digital age. However, having said that, I still employ a spreadsheet tool that is really going to help you support future planning, right? So it's going to have that information on there. We want to make sure our bills get paid. So it's going to have a simple checklist right there. And then you're going to be able to start looking ahead and create the future. And as you look at it, this spreadsheet tool is going to foster the decisions. Well, the phases, phase three, your money decision and phase four, your money freedom, right?

6:08So understanding this system with all these three things, as well as one final thing, which is savings priority. savings priority process I help clients navigate and create in the very beginning because if you are jumping and avoiding sinking funds and emergency funds retirement is going to be harder to get to it's going to feel more elusive it's going to feel like you don't have enough money I had a client who came to me she was working with a financial planner and he she was just embarking on retirement. And he asked her, how much do you spend every month? And she didn't know. So I helped her create this system.

6:54As I sat with her, right, we walked through the money reality, we started creating the system. She had not done any immediate savings. So there was no money for home remodels, home repairs, car registrations, the yearly insurance that she had to pay, which was really quite big living in Florida, right? So being able to have all of the things in your money system that is going to support your life is what I help you create. Now the budget is created based on what you're currently doing. I don't dive in and say, this is what you have to have. These are the things you need to cut. No, that comes in phase three, right?

7:43So we create a budget based off your current efforts. Sometimes having that reality check, you make some adjustments yourself. You're then going to set up those multiple bank accounts to help you control your spending. And I say control, manage, right? And protect your savings. it's going to guide your spending without controlling it right because we're not saying well I only have so much for x y and z no you have this bucket of money that's going to get you from paycheck to paycheck so being able to have this quick eye this quick look and then being able to have a spreadsheet tool that really starts helping you look ahead plan for the future really gives you that now and later solid equation, right?

8:37Being able to have enough now, saving enough for later, and not really having to be restricted on either end of it. Along with the money system, you're going to create payday moves and a money routine. you'll know exactly what you need to do every payday right and it's not going to take a lot of time honestly it will take 10 minutes or less then you're going to set up a money routine and if you are managing money with a spouse you're going to include a money date we'll talk about that we'll explore that we'll make sure that you are keeping track of what is going on what is happening because life can happen every so often and you want to be in tune, in touch with your money.

9:28You've heard me talk about awareness. It's a soft skill. This kind of help fosters that, being aware, being understanding and exploring some of the things. You'll know how to handle irregular income, if that's you, and variable expenses. Really leaning into creating this routine, these moves, you'll know how to function from bills to spending to savings. So what are some real life wins that you could have once you have your money systems set up? That girlfriend's trip just came up and you're like, oh yeah, I can do that. Here's where I make my shifts. Here's where I make my adjustments. Now this really is in phase three, but understanding, setting up these systems really help you develop, give you control, give you understanding, help you begin to see opportunities, help you begin to see pivots, right?

10:38How those are going to really support you in creating. A lot of times I think individuals are being drug along by their money in the sense that they're not looking ahead and they're like, oh crap, I forgot about that. So they have to give up this. They have to give up that. They're really weighted down by debt because they're like, oh, I almost had it paid off within the sense of, but I'm doing okay, but I just can't quite get that ease. This money system will help you get to that point. It's a learning curve. For some, it's greater than others. But really having it in place, I had a client who ended up having life happen.

11:22I think she was two, three weeks that she wasn't able to look at her spreadsheet tool, kind of do her payday moves. She quickly did them. She didn't do all of her routine. But when we were coaching, she says, you know what, it was okay, because I was relying on my other tools that I had created. And I can come back and quickly fill this out. So money still was in support with her, even though life wasn't giving her what she needed at the time. And we know that is going to happen. So what does a money system prevent? It is going to help you prevent those surprise expenses derailing your month, right?

12:04We just went through Christmas. This is one of those biggest expenses that nobody, you know, plans for, prepares for. Creating a money system is going to help you be better prepared for that. So that's a real obvious one. What about the things that are not obvious? You're like, oh man, either you forgot about it or something new. Something new is going to happen. So the money system is going to help prevent you completely derailing your month, which I know you've had that happen. And so you're just like, what is the use of budgeting, right? This is going to solve that for you. It's also going to mean that you're going to actually save the money before it disappears.

12:47you're going to know yes that$500 I have left yep there's actually$600 that I'm going to save those are the things that are going to come about from your money system all right so today's action step from what I've talked about in your money system to get you going to get you started I want you to make a quick budget using three categories. If you've been a long-time listener, you've heard me, but have you done this action step? If you haven't, I really employ that you'd start today. I want you to create. The first one is going to be bills, list of bills, total amount. Next one is going to be spending.

13:37This is what you frequently spend on between paydays. Fuel, groceries, eating out, entertainment, your convenience trips, stops for your coffees, your drinks, your whatever. Have an amount there. And then what is left over? Adding those two, subtracting them from your take-home pay, you have a savings amount. Right there, you have a three category budget that you can start using and employing and really getting into the gist of what is going on with my money. And that's right there is a really good indicator, eye opener, another step in that money reality. So I hope you will take that action step today.

14:26All right, next episode, we are stepping into phase three, your money decisions. Mentioned a little bit in here. It comes off of the tools. You need to have these tools in place and know how to use them to really build up those confident decisions. Being able to make decisions, even in the sense of having all this information, sometimes it's not the right one, but knowing you made the best decision at the time. I don't know what I would do without all of my systems to get these unexpected medical bills that I've had in the end of last year and being able to know how to navigate them, what impact it's having on me, what I'm going to do, what I'm preparing, what I'm planning.

15:19That comes from your money systems. Learning how to navigate that is your money decisions and we'll be diving into that next episode. All right, so learning a system, Using a system takes practice, but that's the beauty of a system is that you will start seeing opportunities for growth and adjustment. And remember, I take you from where you're at, creating a budget, and then you get to use it. As you're using it, you learn more about who you are, what you are, what you want. So there's no restriction. It's just awareness as you move ahead into your retirement. So if you have any questions from today's episode, head on over to Instagram, elevate underscore finances, where you'll find me.

16:10Send me your questions. Just drop them in the message. Let me know what more you're needing, like you're lost or another step or whatever it is. So I hope you'll head over there to that Instagram, elevate underscore finances. Send me a message about today's episode or any other episode, and I'm excited to answer the questions or create additional episodes that cover what you're asking. Thank you for being here, and we'll see you next week. Thanks for tuning in. I hope today's episode helped you feel a little clearer and more confident about your money and reminded you that progress doesn't have to feel overwhelming.

16:48If this episode was helpful, I'd love it if you followed the show, left a quick review, or shared it with another Gen Xer who could use this kind of support. And if you're ready to stop guessing and want clarity around what to focus on next, I invite you to book a free financial clarity call at elevatefinances.us backslash clarity. And remember, retirement isn't just a dream, it's a plan. Let's make it possible together.