Welcome back! By this point in the Bootcamp Series, your financial system is completely up and running. You’ve got all of the best accounts set up and you’ve automated them to work seamlessly with each other.
You’ve figured out how to integrate your personal minimalism with your finances to extend the purpose and fulfillment in your life. The rest is easy. Little changes and occasional maintenance.
Schedule Recurring Reviews
It’s important you plan to observe your spending and saving habits every few months. Since you’re just getting started with your new automated system, I recommend reviewing your spending habits and full financial system at least once a month. As you start to get the hang of your spending and living minimally according to only what makes you feel rich, you’re ready to space out your check-ins.
Hannah and I review our spending at the end of each month. Instead of shaming ourselves for how we’re spending money, we simply ask if our expenses line up with what means most to us. Usually, we’re happy with how the month went because we only spent our money on really fun dates and experiences with each other!
But occasionally, we’ll see a purchase and wonder if it’s in line with our priorities. This is where our regular, once-a-month check-ins are helpful. We recommit ourselves to living the life we know will provide us the most freedom and happiness – one month at a time.
The goal of these regular check-ins is to understand yourself better and what is making you happy. They are an opportunity for you to determine introspectively if you’re living a life with no regrets.
The Rest Is Easy
Since your savings and investing is automated, you’ll hardly ever need to look at your portfolio or savings account. Still, it can be really fun and rewarding to check in every few months and be surprised with how much money you’ve saved already! It’s unlikely that you’ll need or want to change your investing strategy since it’s proven to be the most simple, effective way of earning a return on your savings.
More important, however, is that you evaluate the recurring transfers you’ve authorized from your checking to your savings, from your savings to your Roth IRA, and from your pre-tax income to your 401(K). Is your checking account balance growing higher than what you’d need in a 2 month period? Transfer more into your savings. Is your savings account balance higher than what you need in the foreseeable future? Transfer a greater portion to max out your Roth IRA contribution.
And that’s it! You’re ready to go for another few months until you decide to reevaluate the whole system again.