I think it would surprise most people how little time my family devotes to planning our spending. Most of our processes are currently automated and we really only discuss money during occasional unique situations. When we teach financial classes people often ask us about the specifics of how we manage our money. They want to know details about how we spend, budget, prioritize, and automate. The process seems daunting at first, but with a little bit of set-up, it almost runs on its own.
Many years ago we put together a little system and we have been using and tweaking it for years. At this point, we only spend a few minutes each month planning, talking, organizing, tracking, and thinking about our money. Almost everything is automatic. Saving, Giving, Investing, Tracking, and Planning are all done automatically. Setting up the simple system was really about thinking through three basic concepts: Prioritize, Automate, and Commit- then Repeat. That’s it. Money doesn’t have to be very complicated. We have simply chosen to organize our money so that it is in line with the important parts of our life. Continue reading The Simple Economist’s Guide To Cash Flow Planning