The “eat” part of eat.money is an acronym that stands for Earn, Automate, and Track. As I was thinking about the keys that got me to where I’m at today in life, not just financially, I believe these are it. I wanted to give a little insight into the types of things I’ll be writing about in each of these areas to provide a little clarity.
I didn’t always plan on these being the keys, I kind of just stumbled onto them. Nonetheless, earning a high income, creating systems around certain areas of life to ensure everything gets done and tracking not only my finances but my goals is what took my wife and I from a net worth of -54k in June of 2011 to +200k in June of 2018.
Earning a High Income
Earning a high income isn’t possible for some. I get that. I didn’t understand the importance of it when I started out as an engineer. Having a high income covers up a lot of mistakes. My wife and I had a big hole to dig out of financially with 70k in debt. Fortunately, the combination of my engineer’s salary and her salary provided a pretty good sized shovel. No matter the size of the hole you’re digging out of, having a big shovel certainly helps.
The types of topics I’ll cover when it comes to earning are things like:
- Choosing a career path
- Taking advantage of all the opportunities your company provides
- Setting goals and priorities in life
This area is a little more tricky to me because it could easily be so broad. I don’t intend for it too. The key premise is that life is busy. Automating certain areas of your life by creating systems around the things that need to be done will allow you to be efficient with your time and still not allow anything to fall through the cracks.
Life is busy. With a promising career, hopefully a promising blog, 2 kids, a wife and lots of projects around the house I simply don’t have time to just hope the right things get done. Financially, its important to understand the big rocks that you need to move to get where you need to go. Focus on those and don’t worry so much about everything else.
The biggest thing when it comes to automating life is taking advantage of the 80/20 rule. This rule states something to effect of “80% of your results will come from 20% of your efforts.” Are you kidding me? I find that to be unbelievable.
What would happen if we were able to identify what those 20% efforts look like so we can spend more than 20% of our time doing them? The goal is to automate the 80% of your efforts that lead to 20% of the results because they just don’t matter as much.
Automating life is all about realizing what needs to be done on a regular basis whether that means grocery lists, paying bills, budgeting, tracking goals, etc and making reminders and checklists to ensure they get done but don’t require you to remember all the time.
Tracking your life
In my marriage I’m the saver. I like to think I’m not cheap (I prefer the term frugal) and my wife is certainly the spender. I guess opposites do attract. The whole saver/spender dynamic really makes setting a budget and tracking our expenditures necessary. I’ve learned time and time again that if I dont track our spending, it gets out of hand quickly.
I’ve learned that what gets measured gets managed. Everyone is certainly different but if I’m not measuring/tracking my spending then I can’t really control it. I’ve come up with a variety of ways to measure it through the years. Looking back some of them were laughable. However, I think they all taught me something about how I spend my money and how important it is to track my spending.
Overall, eat.money is a place where I’m going to share my journey. Earning, Automating and Tracking are three big buckets that a good number of my posts will fall into. I hope that I can share some wisdom that will resonate with you so that you can not make quite as many mistakes as I have.