Who has time to read blogs? Certainly not me at my current schedule. I don’t even have time to watch TV anymore. And yet I still find time to read blogs. So I’ve come up with a system that enables me to read a lot of blogs a lot of the time. I’ve managed to fit a lot of reading in this way, and want to share my system with you all. We’ve all heard of the 10,000-hour rule. Well, I spend a lot of time reading blogs about personal finance, money management, and saving money. I’ve come up with a system that lets me read a lot of blogs a lot of the time. I

This month I decided to go back to basics and run through my entire personal finance routine from top to bottom. While I was doing it, I started thinking about how people could do this on their own and what different tools and apps I use to make it easier. You can see my full list of tools in the material at the end of this post, but here are the steps I took, and the apps I used for each one:

If you’re looking to get your finances in order, there are a lot of different things you can focus on: from paying down debt to investing. But if you’re just getting started, we’re going to focus on the basics.  In this post, we’ll break down our thirteen-step monthly personal finance routine.  Within this routine, you’ll learn how to pay down debt, cut back on spending, and save for the future.

(Disclosure: some of the links below may be affiliate links). word-image-3298 Following a personal financial plan saves time and money! For many people, a strict daily routine helps them remember the important things. It’s for me. I follow the same routine every month when I budget my personal finances. In this article I will describe the steps I take each month. It’s good if you have a habit. This allows you to work more efficiently and not forget anything. And once you start doing it regularly, it will become automatic and you will save time. And time is your most important resource. And following a personal finance routine will help you avoid mistakes and maybe save money in the process! Of course, you don’t have to follow the same steps I did. They probably shouldn’t be doing the same things. Each person may take different actions depending on their investment style or situation. But I recommend that you at least clearly establish a monthly routine. You can use my template as a base if you want. And why not make it a weekly routine? Here are the 13 steps of my monthly personal finance routine.

1. Pay my monthly bills (according to salary)

Large Swiss Digital Bank Neon Neon is the best digital bank in Switzerland. And it’s free! Use the code F9YMGT to and get 10CHF for free!   Once I receive my paycheck, the first step in my personal financial routine is to pay my monthly bills for the next month. I do it with the Neon mobile app. These bills are mortgage interest, taxes, insurance, credit card bills, and sometimes unusual bills like Billag or some bi-annual bills. My pay goes into my bank account. I also get a few bills in my mailbox that I pay at the end of the month. Why do I need to do this first? For the simple reason that I want to know how much I have left for the next month. And I want to know how much money I can invest this month. I don’t believe in the pay yourself first philosophy. It doesn’t make sense. If you save as much as you can, you’ll have something left over to pay yourself. Paying yourself first is resigning yourself to it and thinking you can’t save anymore.

2. Checking my emergency fund

I have about two months of monthly expenses left in the emergency fund. I have about 10,000 Swiss francs in my emergency fund. I keep my emergency fund directly in my checking account. If you have access to savings accounts with high interest rates, take advantage of them. But in Switzerland we don’t charge interest on bank accounts. So, after I pay my monthly bills, I look how much I can transfer to my broker.  I have about 10,000 Swiss francs left in my current account. I invest anything above that amount. So if I have 16,700 CHF left, I will invest 6,700 CHF this month. It couldn’t be simpler!

 

The best courtier in Switzerland Interactive brokers Interactive Brokers is an excellent linen broker, with an incredibly low price! Invest in American companies from 0.50 USD!   Once I know how much I can invest, I immediately transfer the money to my trading account. Interactive Brokers usually requires one business day to receive your funds. After I receive the money in my trading account, I invest it immediately. For example, I could invest all my money in my VT ETF. I use the new amount to rebalance my portfolio. I invest in the fund that least matches my allocation. That’s how I balance my budget from month to month. I never rebalance my portfolio. This is consistent with my overall investment strategy. Currently, the stock market is my only investment. But if I were to make other investments, I would split the money between the stock market and alternatives.

4. Reviewing my expenses and budget

At the beginning of each month, I review the previous month’s budget. I try to do it as soon as possible, preferably the first day of the month. I check all expenses and income for errors. When I am satisfied with my spending, I pay attention to my savings rate (which may change as a result of the next two steps). I keep my budget simple with different categories and one amount per category. It is important for me to have an accurate picture of all our expenses. Most importantly, I look at how much we spend in each category. I’m trying to figure out what went right and what went wrong. This will help me improve month after month. If you make an effort each month to improve your budget a little, your budget will be much better in a year’s time!

5. Check my credit cards

The best MasterCard in Switzerland Cumulus Mastercard The Cumulus MasterCard is a free credit card with 0.3% cashback. It is currently the best Swiss credit card.   word-image-7758 word-image-7759 I also make sure all my credit card fees are included in my budget. I also check every credit card statement for errors. I already forgot to include small credit card expenses in my budget. The biggest benefit is knowing that there are no errors or fraud on my credit card statements. It’s also a good time to see if I can buy more things with my credit card. Now that I have multiple credit cards, it’s worth checking to see if charges are being used on the wrong credit card. I want to keep my costs down as much as possible. And make the most of the little bonus I get for my credit card spending. But if you want to keep it simple, you can also choose not to bother with credit cards and use your bank cards! It won’t make much difference.

6. Checking all my accounts

After the credit cards, I check all my accounts. My goal is to determine the current value of each. Fortunately, I don’t have many bills. I have a current account, one with Migros Bank and one with Neon Bank. For each of my checking accounts, I review all transactions. I also make sure I have a budget for each of these transactions. This is usually the only account that moves significantly. I also check my third support in VIAC and Finpension 3a. I also have an account with Interactive Brokers for my investments. I look at the value of each of my investments. If I have all these values, I can go to the next step.

7. Updating my net assets

Our net worth in March 2021 word-image-3299 word-image-3300 I now have the values of all my accounts and all myinvestments. It’s time to put them together in my net worth app. When this is done, I will have my new net worth! I can see how much the net worth has increased (or decreased) from last month. I also check to see if my net worth has increased since the beginning of the year. For me, these are important personal financial indicators to keep an eye on.

I also like to compare trends in different things. In the previous step, I can compare the direction of movement of my net worth. Of course, it has to develop. But most of all he would like to speed up his rise. I also check the trend for myproblems. For example, I track my spending habits over time. One thing that is very important to me is the 12 month average. For example, for my expenses (highlighted in black): Expenditure over time word-image-3301 word-image-3302 Ideally, I would like to see the average drop to CHF 4,500. But that’s not a good thing these days. I can’t even keep it under 5,000 CHF. The average value is greater than the value for each month. Because you can have bad months and perfect months, but the average should level off. I also check the dynamics of my income. And most importantly: I look at the trend of my savings rate. For me, this is the most important trend. Savings rate over time word-image-3303 word-image-3304 Since I started improving my finances in 2017, my average savings rate has steadily increased. This is a good sign. I am also reviewing my income and earning potential. Most of my income is very regular because it is my salary. But I also make a small income with this blog. And I’ll be happy to check how the income comes in.

9. Controlling my financial independence (FIR)

Once I finished processing all the data, it was time to publish the final figures. Of course, I can check the status of my savings. And its tendency, as we saw in the previous part. But the last value I check is my Financial Independence Ratio (FIR). This shows how far I am from financial independence. I can also check the trend: IF ratio over time word-image-3305 word-image-3306 My IF factor should still be rising. It’s developing rather slowly at the moment. I’m working on making it grow faster. But I’m not stressed about when I can retire. Right now our spending is not very stable, so the FI ratio is jumping all over the place.

10. Updating our objectives

I finally got all my grades. It’s time to take stock of where I stand with my goals. Every year I try to set a few goals for the whole year. And every month I check to see if the goals have been met. For example, here’s one of my recent goal updates. Our targets for March 2021 word-image-3307 word-image-3308 It helps me to have an idea of where I am. It also helps me understand what I need to do better to achieve my goals.

11. Setting goals for next month

After I checked off my goals for the year, I set goals for the next month. For example, if I overspend one month, I set a very strict spending limit for the next month. I also set non-binding goals for myself, such as:

  • Explore credit cards to find the best
  • Research bank accounts to find the best option

And so on. I try to set 4-5 goals a month. I don’t always talk about it on the blog. I usually write them on a piece of paper. And when the goals are met, I try to make a plan of what I can do to improve my goals.

12. Exploring blog analysis

This blog is my only part-time job. That’s why I include it in my monthly personal finance routine. If you have any other extra income, it’s a good idea to review that each month as well. I check the traffic of this blog and compare it to the previous month. I use Google Analytics for this purpose. When some pages get more traffic than normal, I try to understand why. And when traffic drops, I also try to understand why. I also check that my blog is not using too much power on my hosting. I use SiteGround to host this blog. Since I’m using one of their low-cost plans, I have to make sure I’m not using too much. If I use too much, the reduced performance negatively impacts the reading experience. If it’s too high, it’s time to move to a higher hosting plan. I also check the income received during the month. But that’s not what I’m focusing on in the blog right now.

13. Blog item

The final part of my personal finance routine is a monthly report on this blog. If you don’t have a blog, you can write a short report on your computer. Or you can track the numbers for the next month. For example, you can see the latest monthly report. This section lists my expenses and income. It also contains information about the current status of my goals. And, of course, information about the events that took place during the month. And my expectations for the next month. Why am I doing this? I do it mostly for myself. I want to keep an eye on my financial situation. I also find that it makes me more responsible. And it helps me stay motivated. And since I love reading the monthly reports, maybe someone will want to read mine!

What I do not do

You’ve probably seen that there are things I don’t do. First: I check the value of my funds, but I have no intention of taking action. I don’t want to buy or sell based on the price of the fund. I buy as soon as the money is in my investment account. And I only sell when I need the money. This is essential for long-term passive investment. You’ve also seen that my personal finance routine is completely free. I don’t automate any of my financial matters. I think automating personal finance is a mistake. I’d rather be in control.

Output

That’s it! My 13 step system for monthly personal finance routines! By following this system, I am very aware of what is happening with my finances. What is good and what is bad. I would like as much information about my budget as possible. And I don’t want to miss a step. I rarely make money mistakes in my personal finances. And because I do the same activities every month, I also save time. These steps are personal in nature. Of course, they won’t all be the same. That said, I think everyone should have their own personal financial routine. Even though these are just a few steps, it is helpful to do them regularly and monthly. Enough of me!  What about you? Do you have a personal finance routine? How many financial actions do you take each month? Get our best strategies and tips delivered straight to your inbox. Get free advice on your finances to help you become financially independent!Even though I’ve been debt-free for the past three years, I was in a pretty bad place financially before that. I was living paycheck to paycheck and had no savings. I didn’t make much money, and I wasn’t spending too much either, but I wasn’t making smart decisions. I was in a vicious cycle of spending all the money I had every week, and then having to ask friends and family for cash to buy food and essentials. I wasn’t always able to pay back my debts on time, but I knew I couldn’t keep up the same lifestyle much longer. I had to make a change, but I didn’t know how.. Read more about the poor swiss and let us know what you think.

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