When Tech is Not Your Friend

The first rule of building wealth is that you have to pay attention. And in the digital age, it’s harder than ever to keep track of what you’re spending. 

Did you know that pain centers in the brain are activated when you write a check or physically hand over cash? That connection isn’t triggered in the same way with digital options. It’s why we recommend that kids make their first big purchases with cash, because it’s more impactful. 

Online bill pay, smartphone payment options, and apps are all popular because they’re convenient. Efficiency is great— but it doesn’t help you pay attention. Not even bank statements are printed on paper anymore. Most banks provide electronic statements that are easy to ignore or overlook. 

How many times have you glanced at a bill and shrugged at purchases you don’t recognize? Those vague descriptions and sneaky subscriptions make it hard to keep track of spending. 

Tech is simply not your friend if you’re trying to get a handle on your finances. 

So what can you do to take control and pay better attention? 

Here’s a simple principle you can follow. Choose two primary modes of payment: Use the primary mode of payment for everything that’s a NEED and the other for everything that’s a WANT.

Whether you’re using a physical card, or a digital option like Venmo or Apple Pay – make sure all needs and wants are paid for by the two separate funding sources. For example, maybe your needs all come from your checking account and its associated debit card and your wants all funnel to your credit card. 

Creating two distinct trails, makes it much easier to see what you’re spending your money on. At the end of the month your bank statement will show the total you spent on needs.  And your credit card statement will show what you spent on wants. 

It also forces you to take a bit of a pause everytime you pay for something.  You have to think about where the money should come from – is it a need or a want – and that’s paying attention.

Helping you get smart about money is our number one goal. 

Don’t forget to share this with your kids or grandkids, too.