Automating My Money


I'm starting off this new year with a few changes on how I manage my finances. I have been crunching the numbers and trying to figure out a way to ensure more consistency with my deposits and finances in general. I believe my account has been leading me up to this point but I wanted to ensure proper allocated funds in order to still pay my monthly bills. I will be surviving on the bare minimum I need every month in order to pay for my necessities such as mortgage, food and utilities.

I have already taken steps towards automating my finances with the creation of my Ally bank account. I have set up this account with automatic direct deposits from my paychecks to ensure that I have enough to cover my 6 month car insurance premium, homeowners insurance, and the property taxes that I owe every year. What this ensures is that I have enough money being put aside for important payments that need to happen that are not on a monthly basis. It makes it much simpler for me to calculate the rest of my finances for the month and be able to put the extra money I have in the bank account into my Independence Fund.

Since I have set such aggressive goals for my Independence fund this year, it is extremely important that I simplify my finances as much as possible. Last year I achieved such great success with my independence Fund largely due to bonuses I earned at work last year. I had some very amazing sales quarters at work and I earned some awesome side money that I don't think I will be getting this year. I will be lucky if I achieve 1/3rd of the money I earned last year in bonuses. This definitely is going to put a damper on my portfolio and goals But I'm remaining positive since the market is in such a great uptrend right now. 

This got me thinking on how I will be able to increase my monthly Fund contributions. Every year I basically get back about the same money from taxes and I don't expect that to be changing much in the next couple years. I have always thought to myself that I want to take full control of my money and give less control to the government. I' am going to capitalize on this idea by increasing my tax allowances which will in turn increase my bi-weekly paychecks. I understand that this will reduce my yearly tax return but I would rather have a more consistent flow of cash into my account that I will be able to generate interest on and dividends on sooner. 

Instead of waiting till the beginning of the year to invest my tax returns, I will be able to spread out this money more consistently which will translate into a higher portfolio balance at the end of the year and more of a chance to get dividend payouts and investment returns. I do realize that I will not be receiving much of a tax return next year but, that is a fine decision for me since I think it will translate into higher returns at the end of the year and it will make my investment deposits more predictable and consistent.

I would rather have more of my money every paycheck anyways instead of the government holding onto my money and collecting the interest on it instead of me. It is the same concept on how I decided to cancel my escrow account and take control of my own account and generate interest on my own money. I'm super excited to see what effect this allowance change will have upon my bi-weekly paychecks. 

The sooner I figure out what my new bi-weekly paycheck amount will become until I can start to come up with a more consistent amount I will be able to deposit every month. I will have to find a balance with my total tax allowances also as I don't want to have to pay anything at the end of the year either.

I have an exciting couple of months ahead of me for sure. I will another $1,000 of fresh capital by the end of the month to invest and I will also be receiving 3 paychecks next month which I will be able to put away double the amount I typically do. I'm also excited about receiving my tax return as it was a bit larger than last year and I should be able to get my Independence Fund balance over $31,000 in just a few short months. 

All in all, I'm encouraged by the growth my fund has received in such a short amount of time and I'm eager to see the success my account will have in the next couple of months. 

Who else is excited for the next couple of months? does anyone else have any investments planned out? 

Image courtesy of Michelle Meiklejohn at