 Your money deserves better What's up money geeks mr. V here welcome to another video guys so into this video we're gonna be talking about What to do with your money? At the end of the month so most people they don't really have a strategy with their money when money comes in They just go with the flow or the pink some bills here and there Whatever whatever is left in the bank account. That's what they consider in our balance of that month And if it's positive, it's good if it's negative like oh what happened? They don't really have a strategy so into this video I want to show you where your money should go every single month if you are serious about Managing your money. You're serious about taking care of your money and really being involved as to Where your money goes? This is really really good and this is gonna help you Keep an eye on your money and trust me when you follow the strategy You can actually start seeing where I call your money drains are what are your money drains? We which part of your finances or which part of your expenses where where do you really? Loose money every month that you don't really know and this is gonna expose that to you. So Again, we're gonna cover a ton here. So I have some of the strategies behind me here We were talking about The different stops that your money makes so assume that you you start from point a and you're driving to Particular location. There's different stoplights on the way. You have to go right. You have to go left and some you have to wait for a little bit So that's this is what I'm I'm actually giving you so I'm giving you a blueprint I'm giving you a route or I'm giving you GPS path that you're gonna your money is supposed to follow every single month And if you're not doing it already, that's okay guys It's not too late to get started You can actually start following the strategy as soon as you're done with this video before we jump into that strategy guys If you're new on the channel, we took about Making extra money we took about saving money we took about investing with my building what and if that's something that really interests you Guys go ahead and give that thumbs up and hit that subscribe button And don't forget the notification bell because YouTube wants it for your garden, right? So hit that notification bell as well Thank you. So let's jump into where your money should go every month So if you look behind me here the title says seven places your money need to go each month So which are the places where your money needs to go each month? I know you know for sure you get a salary, right? And here we identify and you get paid every month So if some people if you're so if you're so have employed This the flow my bill every different for you But if you are employed and have an employer that gives you a paycheck every month This flow it's gonna fit you right away So the first place that your money comes in so assuming that you get a salary or income So the first place that your money needs to go at the end of each month is into your retirement So in most cases I would advise that that money comes out even before your employer sent the other check to you So let's say funding your 401k if you're not really funding a 401k You need to get going on that if your company provides a 401k take advantage of the match and get all that extra free dollars If you have an HSA with your employer make sure that the money that you you're located to go into that HSA It's going into the HSA Make sure that money goes there. Don't let it come to you first all that should go into Those accounts directly from your employer the key word that I want you to have at the back of your mind as we go through this is Automation Automation, this is really important. I Don't know if you can see that but I want you to think about automation as we go through this process because if you automate everything here You can actually leave your house to go on vacation for a month or two and not worry about anything as long as you have money Your account or your employer still pays you you can leave and go so you don't have to worry Because I still see people I mean in this day and age they get paper bills come to the house and they'll write a check and put it in an envelope and mail it and I'm thinking like wow Okay, that was okay if people did that in the 90s Less than the 80s in the 90s in early 2000s Yes in 2020 you're still writing checks to pay your phone bill to pay like your utilities I don't know about you but to me that's that's not a good sign for somebody that manages their money in my opinion I want you to be able to automate everything. You can totally do that. So First money goes into your retirement account and I tell people try as much as possible to fund these accounts You can you can actually put a percentage. I do have a budget sheet that I created That shows you what percentage should go into that retirement account before you even start spending of the money So if you need that budget sheet, I'm gonna link it down in the description below So go check it out download the budget sheet Use it. It's I mean it's different from any other budget sheet that you would see out there It's not just my expenses for the month But it shows you where your money should be going the minute that money comes in so definitely go check out that budget sheet So the next part is the money now goes into your checking account So everybody has a checking account, right? And again back in the days or I'm gonna sit back in the days I mean three four years ago checking accounts, which is our alcohol Holding spot for your money. So your money drops in there and just sit there But now you have checking accounts like Capital one has to get 360 checking account that really pays a good interest rate You get about maybe point seven percent on your checking account, which is Ridiculous to think of so you can put your money in a really good high heel checking account So that money goes in that checking account and the idea is not for the money to sit in a checking account and do nothing, right? So the next place was that money lands into your checking account You already have it set up again, like I said automation I want you to automate everything so you automate the process so that if you don't have an Emergency fund you should move money from that checking account into that emergency fund And what it was the emergency fund for you may be asking yourself if you do have a family You're not sure about your job. There's no guarantee about work for you. I want you to put maybe just secure Three to six months of your living expenses. I mean ideally if you can do 24 months, that's awesome But three to six months, that's the minimum If you can do three to six months you put in money there for your living expenses so that if if you were to lose your job If you were to just switch jobs because of some reason that you don't know You are covered again. If anything would happen to you Your family would have at least six months of living expenses so that they can figure out what to do next So that's the whole purpose behind your emergency fund So you never know again, you can use it for even for medical emergency Because you don't know you can go out to play sports or just go out to work out and stuff again Hurt yourself next thing, you know, you need to go pull into from that emergency fund to do stuff Even though your HSA can actually help with medical stuff too. So you found your emergency fund like I said So I want you to do at least Three to six months that is that is the minimum if you can do 24 months to me that as some the best place to be Imagine that you have the 24 months what of your living expenses saved up? That's good If you lose your job, you can go for two years without working. That's that's a good place to be Then the fourth place that that money needs to go is what I call your dream account So your dream account people have different names for them So again, just think about it something you can you want to call your vacation account You want to call it your car account? You want to call your home account? So if you plan on buying a house less than the next four or five years You plan on buying a new car in the next four or five years you plan on taking that wonderful vacation that you've always dreamt of too Let's say Australia Maybe in the next four or five years that is quite a bit of amount of time for you to just save up, right? So let's say you have five years to save up You start early you start putting money in that account. So So your your your emergency fund I want you to put the money in maybe in a high-heel savings account Right high-heel savings account like the capital one 360 savings account, which is awesome performance savings account It pays about 1.7% and I'm gonna do a video about that coming up here. So you guys can actually see So you put that in it you're getting 1.7% on your you know your emergency fund, which is it's not But it's better than any local or any National bank that you would see so that is really good number because obviously it's about 0.03% that you get So if they're giving you 1.7 that's that's okay. That's not too bad likewise your Dream account. So like I said your dream account if you want to buy a house want to buy a car You want to take that vacation you put the money in there and I would advise If you know ahead of time that that trip would be coming out in five years You can either put it in a money market account that pays maybe over 2% I know kept the one has a good money market account And there's other money market accounts out there that you can actually see which one works better for you put that money in there And just let it grow. So if they're paying you 2% or maybe 2.5% You put it in there and let it grow. Oh, if you can find a good city That matures in five years. That's when you need the money You buy that city knowing fully whether in five years when that seeding matures, you can actually Get that money back. So when you find a good city that would pay on a 2.5 or 3% you put that money into it so We move on to number five and this is now this is the part where most people think about like or When it took about your monthly experience or it took about you managing your money. This is where most people go Readly so number five yet is debt payment. So do you have credit card debt? Do you have student loan debt? I want you now to now take some of that money and then no do your payments and again set Automatic payments so that when the money comes into this checking account Money goes straight into pay this guy So you have a date set up and the reason why I want you to do automatic payment is because I want you to avoid Any late fees, right? Just make the minimum payments because each one has a minimum payment. So if the minimum payment is say $15 Set it up so that that $15 goes out every month But if you want to pay extra, you know that you're not gonna incur any late fee Then you can come back by yourself and schedule another payment of let's say $300 Towards your credit card or towards your student loans. So the idea is Schedule your minimum payments so you avoid late fee and then come back and put the extra payment if you do have it All right, let's move on to the next one and this is Number six now. This is where your regular bills come into play See where we started we didn't talk about your regular bills until number six So your regular bills is you know, you're paying your rent or you have a mortgage you're paying your cable Utilities your gym your phone your car all that stuff falls under your regular bills and those are the bills that you need on a daily on a monthly basis to actually Keep your life going so this is where you pay all those bills And if you can do it again like a set Automate use automation automate everything so that way you don't have to worry So if you were to travel and be gone for a month, you're not there sitting panicking that hole It's gonna ride me to check or you forgot your checkbook, right? So that's that's that's the reason why I want you to automate Okay, it's not just because You know, I love it, but it's because it's for your own interest that way You don't have to carry a checkbook everywhere you go and you don't have to worry about writing checks and mailing them out So now we are at number six, but I said there's seven places where your money needs to go Each month to where is number seven on my board? I don't see it. So number seven is Very important and this doesn't apply to everybody if you if you're somebody that cares about other people you care about giving you care about You know taking care of people so I want you to give to charity. It's either you can do you can donate To your favorite charity You can tie it to a church So donate to your favorite charity do some tidying at the church Whichever way you you want to go about it. This is giving is very important No, that makes number seven and the reason why again, like I said, I separated it because some people don't really Consider that Part of the money strategy. Okay, so that's why it's sitting out there by itself So again for your average person, this is your regular flow So you earn money it goes straight into your retirement before you even see that money The money that comes in your checking account. That's the second stop You find your emergency fund and you you find your dream account you you do you pay your debt And then you pay your regular bills and You actually give some money to charity or use on tidying at your church or whichever one that you You prefer to do to give back to your community. So that's fully up to you So there you go guys again, I'll admit your process Make sure that all of this is scheduled so that each month that money comes in it knows exactly where to go You putting your money to work I hope this was really helpful and I hope this kind of shows you where your money needs to go to work Like I said, you put your money to work and not sit there and be working for your money So that is the premise behind it. So let me know in the comment section if you do have any questions Hey, thanks again for watching guys If you found this useful definitely go ahead and give this video that thumbs up It helps us rank and YouTube algorithm And if you haven't already guys hit that subscribe button and the notification bell and join the money get community And as always guys stay motivated