Dan Egan is a behavioural scientist. He is darn good one too as he is the Managing Director of Behavioral Finance & Investing at Betterment. He wrote a cool blog post on how he manages his monthly cash flow.
Personally, I use 22seven but it can get quite tedious. You have to be disciplined to ensure all your expenses go into the right categories. I am lucky that I don't mind doing but most people find it a pain. Dan doesn't use categories and he spends anything that he hasn't earmarked for saving. He is kind enough to share his method in the following blog post:
https://www.betterment.com/resources/behavioral-science-monthly-cashflow/
In case time is short. Dan sums his method as follows:
- Spend what you don't save
- Earmark and automate
- Minimize overhead
- Vaccinate against lifestyle creep
Twice a month, I have < $300 in my checking account. Why?— Dan Egan 🤓 (@daniel_egan) January 15, 2019
New post!: How a behavioral scientist manages his cash/budget. https://t.co/CKE83wAtqC
BLUF:
- Spend what you don't save
- Earmark and automate
- Minimize overhead
- Vaccinate against lifestyle creep pic.twitter.com/4zOguvWJo8