3 reasons I’m glad I ignored the tips for automating my finances

  • When I got serious about building wealth, I turned to experts and friends for advice.
  • A successful friend told me to automate my finances, a strategy often recommended by experts.
  • I didn’t, and managing my money manually was a major learning experience.
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For the past six years, focusing on my personal finances has been one of my main goals.

I spent most of my 20s being reckless with my money and making countless mistakes, ranging from ignoring my savings account to not having retirement funds. It was after I was laid off from my full-time job in 2015 that I decided I wanted to make big changes to my financial portfolio and spend quality time strategizing on what to do with my money.

I asked anyone for advice. I was so eager to learn and make better financial decisions that I not only contacted professionals but also friends who seemed to have their money in smart places. However, some of the advice I received was not the right one to follow, and I’m glad I didn’t, especially advice from a friend of mine who was on a mission to become a millionaire at 40. year.

They were four years old and under half a million dollars of reaching that net worth. But when they told me I had to put my finances on autopilot and not manage anything on my own, I knew that was advice to ignore, especially since I had been so distant with my money for years.

Finally, I was right. Here are three reasons why I’m glad I didn’t listen to this expensive advice.

1. Managing my money has been a learning experience

When I first started managing my own money, from my day-to-day finances to my investments, I knew I had to be practical in learning how everything worked. I decided not to hire a financial planner to help me divide my money and instead read countless books and articles, deepened my finances, and set my own financial goals. . Doing this allowed me to educate myself about all the options available in personal finance so that I can make the best decisions for myself.

I also decided not to use robotic investing software during those early years so that I could have full control over the stocks or mutual funds I invest in.

Letting go of that control early in my financial journey would have allowed me to skip the education phase I desperately needed.

2. Paying special attention made it easier to spot errors

Another rule I put in place for myself that went against my friend’s advice was to do weekly money checks. I took inventory of where I was spending money and the performance of my investments. Doing this was essential as it allowed me to spot errors on my credit card statements and adjust contributions to my retirement and emergency fund based on my monthly income.

Since I am a solo entrepreneur and my income fluctuates every month, being involved in this process allowed me to make sure that I was managing my finances in a logical way based on cash flow. current.

If I had only made direct deposits or automatic contributions, my variable income means that my numbers would have shifted every month and I might have discovered some accounts, perhaps without realizing it.

3. I learned that finances are not universal

A big lesson I’ve learned in my personal financial journey is that managing your money isn’t a generic process. It was important for me to have not only long-term financial goals (like a retirement plan and savings fund for a possible mortgage), but also short-term goals (like paying for a wedding or a vacation. ).

With those goals in mind, I would then research different low risk options and strategies to help increase my net worth and move me closer to those goals – something I know I wouldn’t have been so proactive if I was. had listened to my friend and automated my finances.

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