Episode•July 21, 2023•18 min

Automating Your Finances - Expert Tips From Darius Smith | Ep. 248

Are you struggling with managing your finances and feeling overwhelmed? Learn how to automate your money to better track your expenses, investments, savings, and debt payments without the hassle. Join Tiffany Grant and financial expert Darius Smith as they discuss the importance of automation for financial success. From bill accounts to sinking funds strategies and Profit First principles - find out everything you need to know about automating your finances today! About Our Guest Darius Smith is an innovative computer engineer who found his true passion when he opened Indy's Indoor Bark Park -- the first ever indoor dog park in Indiana. While his business was initially successful, he, unfortunately, wasn't able to keep up with cash flow management. The resulting enormous debt of $170k was a powerful wake-up call that allowed Darius to discover more about personal financial success and get back on track via automation. Thanks to this life-changing discovery, Darius and his wife have been able to achieve an impressive net worth of $90k in just three short years! His story proves that anyone can turn their financial life around with dedication and discipline. Connect with Darius Visit his website: https://wealthismyworth.com Twitter: @wealthismyworth Instagram: @wealthismyworth Facebook Group: Wealth is My Worth Group Additional Resources I Will Teach You To Be Rich by Ramit Sethi Profit First by Mike Michalowicz To learn more about Profit First for business: https://moneytalkwitht.com/podcast/how-to-create-a-profitable-business-expert-tips-from-rocky-lalvani-ep-207/ Budgeting Basics: https://moneytalkwitht.com/blog/budgeting-basics/ This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

Automation requires a complete system, not just bill pay

Includes investments, debt payments, savings, and goals in priority order

Prevents prioritization problems that lead to overdrafts

Organizes money so important items aren't left out

Use multiple checking accounts to separate financial concerns

Bills account: non-negotiable sacred account for all fixed expenses and debt payments

Fun money account: dedicated spending for enjoyment to sustain the journey

Variable spending account: remainder for flexible expenses

Add investments and sinking funds to the bills account for prioritization

Start with a full financial audit before automating

Calculate lifetime earnings vs. current net worth

Track 6-12 months of expenses to identify leaks

Know exact dollar amounts needed for each account

Use specific dollar amounts for direct deposits, not percentages

Update amounts annually with pay increases

Maintain a 5% buffer (minimum 2%) in bills account

Automate sinking funds for annual/one-time expenses

Intro

Tiffany Grant interviews Darius Smith about automating finances to eliminate prioritization problems and achieve financial goals without constant decision-making.

Darius Smith is a computer engineer who turned around $170k in business debt through financial automation, achieving $90k net worth in three years. He runs Wealth is My Worth and teaches the Automated Money System.

Automating Your Finances - Expert Tips From Darius Smith | Ep. 248

Key Takeaways

Intro

– Defining Financial Automation

– Why Automation Prevents Overdrafts

– Step 1: Know Where Your Money Goes

– The Three-Account System

– Profit First for Personal Finance

– Implementation Details

Books Mentioned

Resources

Topics