Why We Need This ONE Thing To Manage Our Finances Like Fund Managers...

Hey there money-savers, welcome to Budget & Balance - your weekly insight into organizing, managing and growing your personal finances.

Seems odd, right?

I mean, what can cave people tell us about managing our finances better?

There’s an incredibly important lesson in this, and if you want to be a master of money & not its slave within your household, you’ll probably want to take note.

Before we get into that, let’s consider something we’ve likely all heard at one time or another…

Here’s a kind of weird scenario playing out…

Consider for a moment that knowledge already exists.

In this case, our cavebuddy had acquired the knowledge of hunger.

The application of that knowledge meant a solution was needed.

In this case it was going out to find food as a solution.

The knowledge that scrounging for berries for 9 hours a day sucked meant that they probably wanted other things to eat.

Proteins for example.

…And eventually, the knowledge that being cold & eating said cold protein sucked, so they had knowledge that a heat source was needed…

Then one day while Ugg and his lovely wife Uggette were strolling along, a bolt of lightning struck a tree next to them and lit it on fire.

They were in awe, so they decided that heat was good and if they could harness it, they could do all sorts of stuff with it.

(I swear I’m going somewhere with this by the way)

The point of this little tale is to illustrate that a lot of the time knowledge already exists, but what we often really need is…

✅The Tools To Manage Our Lives & Finances

In our case, we often KNOW we need to manage our finances, but we lack the tools to do so effectively.

Ugg & Uggette knew this which is why they were determined to bring the magic of fire to the people.

Another brilliant quote I love is….

If we want to become masters of money, we NEED to manage it.

Even if all we have is a single dollar, the management of it helps us gain clarity over our finances.

Clarity builds confidence and while it may seem daunting at first, you’ll quickly discover how powerful and life-changing it can be to be on top of your bills and budget.

It is my strong belief that outside of health, all freedom stems from financial freedom, so the question is; are you managing your money or are you letting money manage you?

Below you’ll find some simple, actionable tips on managing your finances.

This is not an exhaustive list by any means (we will keep bringing you the goods as long as you’re subbed here by the way).

I highly recommend you start implementing these as early as today.

They might seem simple, but the best ideas usually are!

✔️Quick Savings & Organizational Tips

Here are a few ways you can gain control of your finances. As mentioned, don’t dismiss these just because they’re simple.

1. The 24-Hour Rule for Spending:

Before making any impulse purchases, take a few deep breaths. Walk away from the phone/computer/store.

Give yourself 24 hours to mull it over.

Do you really need it?

This gives you time to reflect on whether it’s a necessary or emotional purchase.

Many times, you’ll find that the urge passes, helping you save money in the long run.

I’ve found this simple act of not making impulse buys has helped me gain control of more than just my finances.

You’re creating a pattern of interruption for your own need for instant gratification. If you can get control of this, you can master so much more than money.

2. Set Budget Buckets:

Divide your budget into “buckets” for each spending category—housing, groceries, savings, etc.

This not only keeps you organized but also ensures you don’t overspend in one area.

Using percentage-based buckets (e.g., 50% essentials, 30% lifestyle, 20% savings) can give you a simple structure to follow.

Before I started developing my own spreadsheets for budgeting and growing my finances, I used a simple mental division of my spending.

This works well to categorise your income and finances.

3. Automate Savings:

Set up an automatic transfer from your checking to savings account each month, even if it’s a small amount.

I heard somewhere that if you can manage one dollar, you can manage a million of them.

Even if it feels like you have nothing left, try automating even a tiny portion of your income to your savings.

The simple habit builds repetition.

Repetition builds habit and as simplistic as it may sound, it’s not income that makes people rich.

It’s what they do with their money that counts.

Start creating this habit now and when your income grows, so too will your capacity to look after it.

This makes saving a priority without you having to think about it, and it helps you build a savings habit effortlessly.

💭Final Thoughts

Like all good things in life, budgeting and getting organized with your finances takes practice and with the right resources in place you’ll be miles ahead of where you are now in a year’s time.

To help you manage your finances better, be sure to download our FREE income and expense tracker template here. 

…And of course, if you want to manage your finances like a pro, feel free to visit our store here.

It starts with the decision to manage your money - even if it’s on a small scale now, that habit will grow with you over time.

…And if you are already budgeting, kudos to you. I’d love to hear how you’ve been going so far and what resources would help.

I don’t always get the chance to reply to emails, but read them all and I love hearing from you.

Hit reply and let me know!

To your success,

Ren