Personal Finance

Yoojin emphasizes the importance of a monthly expense review on the third day of each month to ensure all transactions, including those from the end of the previous month, are fully processed. This process, termed “Money Matters,” focuses exclusively on variable expenses such as credit card, Venmo, Zelle, and cash transactions, and fixed payments like mortgages or car loans. The method involves compiling transaction data into a spreadsheet, categorizing each expense, and then using a pivot table to analyze spending by category. This analytical approach allows for adjustments in spending habits, identifying unnecessary expenses, and ensuring money is utilized effectively as a tool for wealth building rather than being consumed by impulsive purchases. The goal is not to micromanage every dollar but to gain a general understanding of spending patterns to make informed decisions for future financial planning.

On the eighth of each month, Yoojin dedicates time to reviewing macroeconomic trends and global financial news to stay informed about the broader economic environment. This exercise isn’t directly linked to personal budgeting or investing but is crucial for understanding the impact of external factors on personal finance. Yoojin participates in local professional groups discussing various sectors like biotech, education, and real estate, which enhances her comprehension of these trends. She cautions against indiscriminate consumption of financial advice online, advocating for personal education to discern its relevance. Institutional publications from sources like Oaktree and Warren Buffett provide valuable insights without a sales agenda, offering a deep dive into fund performance, strategies, and macroeconomic trends.

Mid-month, on the fifteenth, Yoojin encourages engaging with both personal networks and financial professionals to discuss money management. Recognizing the sensitivity of financial topics, she suggests starting conversations with financially savvy friends or family members and then escalating to professional advice. She highlights the benefits of face-to-face meetings with bank representatives or utilizing free consultations with online financial advisors. The diversity of perspectives, clearer understanding of personal financial goals, and the skill of seeking help effectively are outlined as key advantages of this approach, emphasizing that every question asked is a step towards financial empowerment.

On the twenty-eighth, coinciding with her payday, Yoojin aligns all her credit card, recurring payments, and subscriptions to be due, simplifying her financial management. This strategic alignment ensures a clear view of cash flow, aiding in living within means and reducing financial stress. The act of settling all debts on a single day provides a psychological sense of freedom and financial relief. Yoojin mentions personal constraints like her inability to invest in individual stocks due to her job and the challenges posed by not being a permanent resident, which influence her financial strategies and reliance on tools like Microsoft Excel for managing her finances.

Yoojin advocates for the creation of a dedicated Google calendar for financial management to centralize and streamline financial tasks and reminders. This specialized calendar, separate from personal and professional engagements, should be named inspirationally and color-coded for easy identification. It should include all critical financial deadlines, including bill due dates, tax deadlines, and the ends of free trial periods, with reminders set to avoid missed payments and unintended charges. This system ensures that financial obligations are never overlooked and contributes to a disciplined approach to financial management.