Roth vs Traditional: Simple Rules of Thumb — Mastery #2
Roth vs Traditional: Simple Rules of Thumb — Mastery #2. Here’s the simple version that works without perfect discipline or fancy software.
Your cashflow is the engine; a payoff plan is the steering. Without both, interest wins by default.
Steps
- Map cashflow — List income dates and fixed bills so you know exactly when money arrives and leaves.
- Automate transfers — Schedule savings and debt extra the day after payday so progress happens by default.
- Bucket spending — Group variable expenses into a few buckets (groceries, transport, fun) so tracking stays lightweight.
- Quarterly tune‑up — Revisit insurance, phone plans, and subscriptions; big wins hide in boring places.
Why map cashflow? List income dates and fixed bills so you know exactly when money arrives and leaves. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why automate transfers? Schedule savings and debt extra the day after payday so progress happens by default. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why bucket spending? Group variable expenses into a few buckets (groceries, transport, fun) so tracking stays lightweight. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Why quarterly tune‑up? Revisit insurance, phone plans, and subscriptions; big wins hide in boring places. This changes the game by making the decision once, then letting your system run even when life gets chaotic.
Toolkit
- Calendar — Mark paydays and due dates; set a 10‑minute weekly recurring event.
- Spending alerts — Set thresholds so you get a nudge before you overshoot, not after.
- Note template — Keep a running doc for wins, misses, and next week’s one change.
- One bank with buckets — Use sub‑accounts to name goals; move money visually not mentally.
How to use calendar: Mark paydays and due dates; set a 10‑minute weekly recurring event. Start simple; upgrade only if it saves time every single week.
How to use spending alerts: Set thresholds so you get a nudge before you overshoot, not after. Start simple; upgrade only if it saves time every single week.
How to use note template: Keep a running doc for wins, misses, and next week’s one change. Start simple; upgrade only if it saves time every single week.
How to use one bank with buckets: Use sub‑accounts to name goals; move money visually not mentally. Start simple; upgrade only if it saves time every single week.
Example
A solo renter used the weekly review to catch a duplicate subscription and freed $28/month toward debt snowball.
Related Articles
- Weekly Money Review in 10 Minutes — Mastery #2
- 401(k) Match: Don’t Leave Money on the Table — Mastery #2
- Cash Stuffing vs Auto‑Transfers — Mastery #2
- Small Business Budget: First 90 Days — Mastery #2
← Previous: How to Read a Paycheck Stub — Mastery #2 Next: Index Funds 101 for Beginners — Mastery #2 →
Related Articles
- Emergency Fund: How Much Is Enough? — Mastery #2
- How to Build a Sinking Fund — Mastery #2
- Small Business Budget: First 90 Days
- Minimalism for Your Wallet — Mastery #2
← Previous: How to Read a Paycheck Stub — Mastery #2 Next: Index Funds 101 for Beginners — Mastery #2 →
Related Articles
- How to Pick a Target‑Date Fund — Mastery #2
- Pay Yourself First (Practical) — Mastery #2
- How to Build a Sinking Fund — Mastery #2
- Used, Refurbished, or New?
← Previous: How to Read a Paycheck Stub — Mastery #2 Next: Index Funds 101 for Beginners — Mastery #2 →