# Simple Money Management

- Link: https://threedolar.com.br/en/simple-money-management/
- Published: 2025-08-18T08:34:31-03:00
- Author: silencedog

Hey everyone! There’s a lot of mysticism around money and how people manage it. 
I’ve seen countless methods like the **kakebo system**, the **50-30-20 rule**, and**
envelope budgeting**.

But today, I’m bringing you something different. I’ll share **3 clear, direct solutions**
for managing your money the same way I do. Nothing traditional here. Trust me—I 
won’t waste your time.

## My Background: Business Cash Flow Thinking

For context, I spent many years managing multiple businesses. So I handle my personal
finances using something similar to **business cash flow management**. Here’s how:

## Solution #1: The Simple Recording System

### **Stop Tracking Every Single Detail**

First things first: **stop writing down every little thing**. This obsessive tracking
is toxic and needs to be gradually reduced.

Let me share an ancient technique used by the most prosperous civilizations in history.
An innovative technology that costs almost nothing and gives infinite returns: **
Pen and Paper**.

That’s right. I use purely pen and paper. Nothing else. The foundation of humanity
is pen and paper. Every plan, idea, or innovation started with pen and paper.

I once heard:

> _“Of all the work tools you can carry, pen and paper are the lightest…”_

That quote is etched in my soul.

### **You Don’t Need Complex Systems**

You don’t need:

 * **A dozen paid subscription apps**
 * **Spreadsheets with 20 different tabs**
 * **Super complex software to understand your finances** (Trust me, I’ve used all
   that junk)

Just look at: **Your account balance**… that’s right, my friend. Want to know your
financial health? Check your balance!

 * **Does it give you peace?** Great—sleep well.
 * **Does it make you nervous, stressed, and anxious?** Sleep faster and let’s get
   to work.

### **The Solution: The Four-Square Method**

Take a sheet of paper and a pen (even an old Bic pen and that notebook from 3 years
ago will work).

Divide the paper into **4 squares:**

 1. **INCOME**
 2. **EXPENSES**
 3. **ASSETS**
 4. **LIABILITIES**

#### How to Fill Each Square:

**INCOME**: List all the money you expect to receive this month (net amount). Include
even money your uncle owes you (and collect it!).

**EXPENSES**: List ALL expenses—from rent to the hair salon.

**ASSETS**: Everything you have invested that generates money somehow. List the 
current value of each asset.

**LIABILITIES**: List all your debts from smallest to largest. Why? Because paying
off smaller debts first gives you momentum and makes you feel good about checking
things off.

### **Why This Works**

Studies prove that **writing things down on paper helps you retain information better**.
The idea here is to visualize and understand your financial situation. We’re not
trying to overcomplicate things—we’re creating **motor memory**.

What we’re doing with this budget is simply **giving our money a function**.

## Solution #2: Credit Cards = Bazookas (In Both Senses)

Let’s be honest: Do you know how to use credit cards without getting tangled up?
If not, master this first before moving forward.

### **3 Reasons to Use Credit Cards Routinely:**

 1. **No Need to Track Everything**
 2.  * Everything shows up on your statement (time saver)
     * Files are kept for up to 5 years at the bank
 3. **Security**
 4.  * I bought a shirt online in 2024—the site was a scam
     * Called the bank and they canceled the purchase
     * Also had fraudulent charges while I was having lunch in another city
     * Using **OPM (Other People’s Money)** is beautiful
     * If it were a debit transaction… gone forever
 5. **Bonuses**
 6.  * **Miles, cashbacks, and bank perks**
     * You don’t have to build your life around this
     * But if you’re spending the money anyway, why not get $10 back on a $1,000 purchase?
     * Use moderately when needed

### **Extra Tip: Cash Flow Advantage**

When you put expenses on credit cards, you only pay once a month. Your money keeps
earning interest in savings/CDs longer, and you accumulate more interest. It may
be small, but this pays for an extra snack during the year or an electricity bill,
depending on your spending.

## Solution #3: Time and Planning

This entire process takes me **1 hour per month**.

I draw my budget (give money a function), schedule automatic payments for basic 
bills (direct the money), save my portion, and set it aside. The rest? **Live it
up!**

### **The Common Sense Principle**

If you’re a modest person who’s stable with money, what difference does it make 
if you spent $200 more this month because:

 * You went out with long-time friends and had a great time?
 * You bought some books that were on sale and you’d been eyeing for a while?
 * That smartwatch you wanted?

**Why not?**

Throughout your life, try to apply something rare: **Common sense!**

The problem is that common sense can’t be taught—it’s learned. Some people are born
and die without it. But try following your intuition more often. It’ll do you a 
world of good!

### **Remove the Guilt from Spending**

We all need to remove guilt from spending. Sometimes spending is good, valid, helps
the economy, and benefits society as a whole.

## The Cash Flow Method Explained

Every dollar that enters my account, I:

 1. **Save a portion**
 2. **Pay necessary bills**
 3. **Leave an amount in checking**

I normally use credit for daily expenses, but I always have cash in my wallet and
money in checking.

### **Why Keep Cash Available?**

You’ve probably been out with that friend who, when it’s time to pay the restaurant
bill, does one of these **3 annoying things:**

 1. Transfers money from savings to checking
 2. Adjusts their credit limit (because they keep it low)
 3. Does mental math to piece together cash and card

This is terrible for several reasons, but the main feeling here is **fear**—yes,
fear of losing money.

### **The Power of Financial Confidence**

Do what you need to do first with your money. Then try keeping $1,000, $2,000, or
$3,000 in checking. This is amazing. Why?

**Every time you open your banking app, you’ll think: “I’m awesome! Look at my money
there!”**

Every time you go to a restaurant or need to pay a bill:

 * Your credit will always be available and go through
 * If credit doesn’t work, you have debit (because there’s money in the account)
 * If that doesn’t work, you have savings
 * Worst case, cash in your wallet

### **The Confidence Effect**

This feeling of power and capability—I can’t explain it scientifically, but it gives
you more courage and pleasure in living life. It’s very different from people who
count pennies to pay.

When you see someone who has confidence, who knows they have money (doesn’t need
to be 6 or 8 figures), you can notice their posture changes. **Head up, shoulders
back, confident expression.**

It’s different… Try it!

## The Bottom Line: Focus on What Really Matters

Everything boils down to **gaining satisfaction in life** and having more time to
focus on what truly matters:

 * **Family**
 * **Friends**
 * **Partner**
 * **Rest**
 * **Learning**
 * **Growth**
 * **Your income**

## **Final Killer Tip: Focus on Increasing Your Income**

It’s pointless to control, use cards, and want to live better if your income is 
low for your lifestyle.

After the internet, everything became easier. **You don’t need anyone’s permission**:

 * Open an LLC in 10 minutes
 * Create a YouTube account in another 10 minutes
 * And there you go

**Can’t write?** Make videos and podcasts.
**Can’t do either?** Write code.**Can’t
do any of these three?** Go back and prepare again.

### **The Service-Income Connection**

> _“The amount of money you earn today is directly linked to the quality and quantity
> of services you provide!”_

**Think about this quote. Write it down. Tattoo it.** Sooner or later, it will make
sense to you.

## Key Takeaways

In the end, everything comes down to having more time for yourself and others. **
Writing down everything you spend isn’t healthy—it’s toxic** and needs to be treated
gradually.

**Finance doesn’t have to be difficult.** It should be something calm for you and
done **YOUR WAY**. Just don’t neglect it for the rest of your life.

It’s not rocket science. **Focus on yourself and your quality of life**, accept 
what you can’t control, and focus all your energy on improving and creating useful
things for others.

_If you made it this far, thanks for reading!_ 😉


![silencedog](https://secure.gravatar.com/avatar/23534987e53f223fefe373bad21cf0fed944c122744c00ef63389122a35eac01?
s=100&d=wavatar&r=g)

[silencedog](https://threedolar.com.br/en/author/henriquep/)