Wyo4News Switchbacks: Hack your finances

September 25, 2022

by Ryan
Wyo4News feature writer

The other night I was asked in a meeting, “What does Money say to you?”  The only answer that readily popped into my mind was, “Goodbye.”

Money is likely one of your top three stressors. And, it’s difficult to talk to anyone about it. Unless you pay them.  Money.  That you are running low on. So, let me get this straight. I have to give someone what I don’t have. Then I should tell them what I don’t want anyone to know. And, maybe then, I’ll better manage the one thing I don’t want anyone to know about me. Sure.

Here are a few free hacks. They might take some time to accomplish but will definitely calm your money fears. 

When it seems that things are out of control, find one thing you can control. That is your starting point. Is there anything you can actually do about your finances? If so, then you have found the grip you need to climb out of the hole you are in. Here are a few things that will bring some “zen” to your financial stress.

Start Telling Your Money Where to Go

I am imagining pulling out my wallet and having a heart-to-heart. “Hey pal, you don’t get to tell me what to do. I tell you what to do.” Sounds silly, I know, but the truth is even stranger.

As soon as you have or even expect some income, your money starts pulling the old Arnold Horshack. “OOH, OOH, OOH, Me. Pick Me!” “We should go to the movies. Let’s have a nice dinner.” Oh, and don’t forget, bills, bills, and more bills.

Before you know it, you are back in survival mode. No progress has been made in easing your financial worries.

So, promote yourself to CFO (Chief Financial Officer) of You, Inc. Before your money gets a vote, you sort it out. Here’s the deal Mr. Paycheck. You have a job to do, and here’s how you’re going to do it. First, we’re going to pay me. 

You have to put money away for yourself. It doesn’t matter how small it is in the beginning. Just start. 

Then, you can tell your money to pay for food, fun, charity, and so on. Remember, you’re the boss.

There are a lot of ways to do this. When my wife and I started many years ago, we used envelopes. We literally divided our income into envelopes to meet our needs and obligations. Now there are apps, specialized credit and debit cards, and a myriad of accounts to choose from. When you decide that you are the one in charge, you will find solutions that can’t presently imagine. 

I can just hear your money now, “Very impressive, Mr. Kott-errrrrr.” (Insert your name for Kott-errrr.)

Prepare for the Expected

There are so many things that set us back financially that are NOT surprises. Tags and taxes for your cars are due every year. You usually take a trip or two each year. 2020 withstanding. Independence Day, Thanksgiving, and Christmas come around like they are on the calendar or something.

Don’t let expected things become setbacks. Years ago, I got tired of them catching me off guard. So we calculated how much we spent on them the last year and divided the total by 12. Then we had a monthly payment into a savings account to make sure Christmas didn’t sneak up on us again. Once those annual expenses become a monthly payment, they aren’t scary anymore. When the bill shows up, the savings account for those bills is ready and waiting.

Prepare For The Unexpected 

Unexpected expenses are a part of living. Cars break down, tires get damaged, appliances wear out, and so many other things. Dave Ramsey calls it the emergency fund. He also calls it Murphy insurance. 

In the beginning, it’s not how much, it’s that you start. A few hundred to a few thousand dollars set aside strictly for emergencies secures so much peace. The first time I secured an emergency fund for our family was not easy. But, sleeping at night got easier once we accomplished it.

There is a way to have peace when it comes to money. You can do it. You can start today. It will even be fun once you begin making progress. And, the stress being lifted is worth so much more than money.

Peace,

Ryan