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A Lazy Person’s Guide to Managing (and Saving) Money

In this article titled “A Lazy Person’s Guide to Managing (and Saving) Money,” the author explores how laziness can actually be advantageous when it comes to personal finance. The author, a personal finance writer, admits to being a lazy budgeter and shares strategies for utilizing laziness to save and grow wealth. The article emphasizes the importance of setting up systems such as automation and compound interest to work in one’s favor, while also cautioning against the pitfalls of complete financial negligence. By striking a balance between laziness and proactive financial management, individuals can achieve a bright financial future without sacrificing their time and energy.

Setting Yourself Up for Success

In the world of personal finance, being lazy doesn’t have to be a bad thing. In fact, with the right approach, laziness can actually work to your advantage. The key is to set yourself up for success by implementing systems and strategies that automate your financial management and make the most of compound interest. While being lazy with your money may sound counterintuitive, it can actually lead to greater financial freedom and security.

Automate, Automate, Automate

One of the easiest ways to make financial laziness work for you is to automate as much of your money management as possible. By setting up automatic deposits and withdrawals, you can ensure that your bills are paid on time and that you’re consistently saving and investing without having to think about it.

Certified financial educator and financial coach Maggie Germano recommends using direct deposit and auto-deductions to save money and contribute to retirement or other savings goals. You can also take advantage of robo-advisors and apps that automate your investments in the stock market. These tools allow you to save and invest without needing to actively manage your portfolio, freeing up your time and energy for other pursuits.

Setting up automatic bill payments is another important aspect of financial laziness. By using auto-pay for your credit card and other recurring expenses, you eliminate the risk of missing a payment and incurring late fees or damage to your credit score.

Make More From Compound Interest

Compound interest is a powerful tool for growing your wealth over time. By leaving your investments untouched and allowing them to accrue interest, you can harness the power of compounding to maximize your returns. This is where being lazy with your investments can really pay off.

Professor Alexander Lowry, director of the Master of Science program in Financial Analysis at Gordon College, emphasizes the importance of time in the compounding process. The longer you leave your investments to grow, the more powerful their returns will be.

While it’s crucial to have an emergency fund in cash, Lowry cautions against relying solely on cash as a long-term investing strategy. Cash is important for short-term goals and crisis situations, but to truly benefit from compound interest, you need to be invested in assets that have the potential to generate higher returns.

By automating your contributions to retirement accounts and other long-term investments, you can take advantage of compound interest and make more money without having to actively manage your portfolio.

A Lazy Persons Guide to Managing (and Saving) Money

Ways to Make Financial Laziness Work

While automation and compound interest are powerful tools for lazy money management, there are other strategies that can help you make the most of your financial laziness.

Credit Monitoring

Keeping an eye on your credit score is important for maintaining good financial health. However, monitoring your credit doesn’t have to be a time-consuming task. Many major credit bureaus offer free or low-cost credit monitoring programs that provide regular updates on your credit score. Additionally, many banks and budgeting apps offer free credit score updates as part of their services.

By setting up credit monitoring, you can stay on top of your credit without having to dedicate a significant amount of time to it. This allows you to be lazy with your credit management while still ensuring that you’re aware of any changes or issues that may arise.

A Lazy Persons Guide to Managing (and Saving) Money

The Caveat to Financial Laziness

While financial laziness can be a helpful approach to money management, there is a caveat that must be considered. In order to set yourself up for success in the long run, you need to put in a little bit of effort at the beginning.

Automating your savings and investments won’t yield the desired results if you don’t have enough money left over to cover your basic expenses. It’s important to take the time to track your spending, create a budget, and determine how much you can comfortably save and invest each month.

Putting in this initial effort is crucial for establishing a solid financial foundation. Once you have systems in place and a plan that aligns with your financial goals, you can relax and let your automated processes do the work for you.

A Lazy Persons Guide to Managing (and Saving) Money

Conclusion

Being lazy with your finances doesn’t mean neglecting them entirely. In fact, with the right strategies in place, laziness can be a virtue when it comes to money management. By automating your finances, taking advantage of compound interest, and implementing other lazy-friendly strategies like credit monitoring, you can set yourself up for success and achieve your financial goals with minimal effort.

Remember, it’s all about finding the balance between being hands-off and being actively involved in your financial life. By harnessing the power of automation and compound interest, and putting in a little bit of effort at the beginning, you can make financial laziness work for you and enjoy a bright financial future.