Automation is king 🤖👑

Building wealth involves good habits being performed consistently over time.

We as humans are flawed, emotionally-driven creatures – which is great for some things and terrible for others.

Unfortunately good habits can easily be derailed by our emotional state.

When we are in the right frame of mind it is easier for us to perform positive habits. However, if we are in a bad frame of mind making good decisions becomes difficult, or seemingly unimportant.

James Clear, author of Atomic Habits, has worked out the formula for success. The key is to put fewer steps in place between ourselves and good behaviours and more steps between ourselves and the bad ones.

With automation we can take it one step further and remove ourselves from the equation entirely!

Once we have automated our savings, our wealth is free to grow to heights which otherwise may not have been possible with our continued input.

We are then free to go about our lives whilst good financial behaviours are happening automatically in the background – brilliant 🙂

So, how does one set up an automatic system for accumulating wealth?

Luckily, it is a straight forward process and you may already have some of the groundwork in place.

Once the system is in place it is low maintenance and will only require the occasional review (hopefully to increase the amount you save as you earn more).

The first thing to do is to put together a budget.

If you are adverse to budgeting, the rule of thumb to get you going is the 50/30/20 rule.

50% of your income will go on your needs, 30% on wants and 20% on savings. If you can reduce the first two and increase the savings percentage, happy days!

Once you have your budget, follow the below steps. I’ve used the 50/30/20 rule as the example:

  1. Set up a new current account (this will be your ‘spending account’).
  2. Create a standing order to send 30% of your income to the new account every payday.
  3. Have the other 20% go into a savings or investment account via direct debit.

The above system will leave your current account with the 50% needed to cover all of your fixed costs for the month. You are then free to spend the 30% as you wish, safe in the knowledge that 20% has been automatically saved.

Depending upon what your current set up looks like, the above may vary.

For example, I send my fixed costs to a joint account, which covers our expenses each month. If going down that route makes sense for you, then you just need to add an extra step of moving your direct debits to the new joint account.

In the name of transparency, I must confess that I still haven’t called the council to move the direct debit over to our joint account… so I move it across manually each month (I’m a flawed human, I hope you can forgive me 😄).

Consider this post a call to action.

I implore you to carve out some time one afternoon to automate your savings – it might just be the single most important thing you can do on your wealth building journey.

If, like me, you don’t enjoy budgeting, it will make your life so easy and before you know it you will have saved a fair bit of wedge, with no effort at all!

If you have any suggestions on other areas that can benefit from automation I would love to hear from you. You can reach me on Twitter or at mantaroblog@gmail.com.

Thanks for reading.

Tom Redmayne

Financial Planner-in-waiting

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The Fear.

You must learn to become comfortable with failure, otherwise you will have to become comfortable with regret.

Fear is a natural and primitive emotional response that has served humans well for most of our existence. It alerts us to potential physical and mental harm, real or otherwise.

A hunter-gatherer would not have made it far without fear. It is better to move away from the rustling bush than to ignore it and be mauled by a bear.

The fear of the unknown serves a purpose, however in modern society it often leads to anxiety – a form of persistent fear.

For me, it tends to rear its ugly head whilst I am studying a challenging topic or publishing content online.

The fear of not being good enough. The fear of falling below one’s own expectations. The fear of failure.

It drives negative mental loops and chips away at self confidence.

Dancing with the possibility of failure, which is an inherent part of the learning experience, is uncomfortable and runs in direct opposition to the mind’s want for ease, comfort and safety.

It is easier to lower your expectations and not put in the work.

Whilst avoiding failure is easy and comfortable, it is counterproductive in the long term. You become stagnant and do not give yourself the opportunity for growth.

Instead, you must learn to become comfortable with failure, otherwise you will have to become comfortable with regret.

Regret of the path not taken. Regret of not testing your limits. Never knowing if you could live up to, or exceed, your own expectations.

If I gave in to these feelings every time they arose, then I wouldn’t have passed any exams or had the courage to launch this blog.

Instead of packing it all in, I take a moment to acknowledge the feelings for what they are. A primitive, emotional response that thrives off comfort and hinders growth.

Acknowledging fear diminishes its power and replenishes the self confidence that it attempts to strip away.

Fear may win the occasional battle, but I have no doubt that it will not win the war.

Thanks for reading.

Tom Redmayne

Financial Planner-in-waiting

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Why Financial Planning.

He who has a why can bear almost any how – Nietzsche.

In February 2019 I made the decision to leave Fresh Eats Bristol, the business I had started with friends two years prior.

It was a difficult decision, one that had plagued me for some months. I had been the catalyst for the business, and then after two years I was hanging up my hat.

When I initially broke the news there was an instant wave of relief, letting go of the built up tension and stress from the months prior in which I had been rather unhappy. I knew that food was better placed as a hobby in my life, rather than being my career.

I left the business with no plans and spent some time feeling listless, deflated and, quite frankly, like a failure.

At some point I knew I needed to sort myself out and find a new path. I got a part time job at a local sausage restaurant and spent some time thinking about what I wanted out of life and out of a career.

One thing that became clear to me was that I wanted a life of meaning and of purpose.

Most of my working life has been in the services industry and helping others has always been where I derive the most satisfaction.

My friend Nick, who is an IFA, suggested following him into financial planning. At the time I was blissfully ignorant to the financial services industry and believed that investing was only for the Jordan Belfort’s of this world.

Nick opened my eyes to the profession and after some additional reading and devouring podcasts I felt I had found my new calling.

I was drawn to the meaningful impact one could have on peoples lives through proper planning and guidance.

It was the realisation that financial planning is much more than simply helping clients with their finances, it is helping them plan for their life. Money is an intrinsic part of all our lives and is the undercurrent which runs throughout our existence on this earth.

The idea of building multi-decade relationships with clients, helping them navigate through life and having their best interests at heart spoke to me.

I have been influenced by Muhammad Yunus, a Nobel Peace Prize winner and social entrepreneur, who has shown that business can have a positive impact on individuals and society as a whole.

Since reading Muhammad’s book at university I have always wanted to offer a service which helps people and has a positive impact.

Following those first conversations with Nick, I have managed to get my foot in the door of the financial services industry and have been studying for the Diploma in Financial Planning during my spare time.

There is a long way to go and I still have a lot to learn. However, I am truly excited and energised by the challenges that lie ahead.

Thanks for reading.

Tom Redmayne

Financial Planner-in-waiting

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