3 Reasons I’m Glad I Ignored Advice to Automate My Finances – Business Insider

3 Reasons I’m Glad I Ignored Advice to Automate My Finances – Business Insider

  • When I got serious about building wealth, I turned to experts and friends for advice.
  • One successful friend told me to automate my finances, a strategy often recommended by experts.
  • I didn’t, and managing my money manually has been a major learning experience.
  • Read more stories from Personal Finance Insider.

For the last six years, focusing on my personal finances has been one of my main goals.

I spent most of my twenties being reckless with my money and making countless mistakes, from ignoring my savings account to not having a retirement fund. It was after I got laid-off from my full-time job in 2015 that I decided I wanted to make big changes to my financial portfolio and spend quality time strategizing what to do with my money. 

I asked anyone I could for advice. I was so eager to learn and make better financial decisions that I not only reached out to professionals but to friends who seemed to have their money in smart places. However, some of the advice I received wasn’t the right advice to follow, and I’m glad I didn’t — especially the advice that came from a friend of mine who was on a mission to become a millionaire by age 40.

They were four years away and less than a half-a-million dollars away from reaching that net worth. But when they told me I should put my finances on autopilot and not manage any of it myself, I knew that was advice to ignore, especially since I had been so aloof with my money for years.

In the end, I was right. Here are three reasons I’m glad I didn’t listen to that costly advice. 

1. Managing my money was a learning experience 

When I first started managing my own money, from my day-to-day finances to my investments, I knew I had to be hands-on in order to learn how everything worked. I decided not to hire a financial planner to help me divide up my money and instead read countless books and articles, did a deep-dive into my finances, and set my own money goals. Doing this allowed me to become educated about all the options available in personal finance so I could make the best decisions for myself.

I also decided not to use any robo-investing software during those first few years so I could have full control over the stocks or mutual funds I was investing in. 

Giving up this control early on in my financial journey would have allowed me to skip over the education phase which was something I felt I desperately needed. 

 

2. Paying close attention made it easy to catch mistakes 

Another rule I put into place for myself that went against the advice of my friend was to do weekly money check-ins. I’d take inventory on where I was spending money and how my investments were performing. Doing this was essential because it allowed me to catch errors on my credit card statements and adjust contributions to my retirement and emergency fund based on monthly income.

Because I am a solopreneur and my income fluctuates monthly, being …….

Source: https://www.businessinsider.com/personal-finance/glad-ignored-advice-automate-finances-2022-1

Personal finances