Episode Summary: How To Use Our #1 Key To Money Management Success (SB1641)

Release Date: February 7, 2025
Podcast: The Stacking Benjamins Show
Hosts: Joe Saul-Sehy and OG
Award: Named 2023 Best Personal Finance Podcast by Bankrate.com

1. Introduction to Financial Automation

The episode delves into the pivotal role of automation in personal finance management. Hosts Joe Saul-Sehy and OG are joined by esteemed guests Paula Pant, Jesse Kramer, and Doc G (Jordan Grummet) to explore how automating financial tasks can lead to significant money management success.

2. Panel Introduction and Light Banter

Timestamp: [01:38] - [05:03]

The hosts introduce Bruce Dickerson as the new producer for the show, setting a lighthearted tone. The panel engages in friendly banter, discussing personal anecdotes about childhood camps, highlighting the show’s engaging and relatable atmosphere.

3. The Importance of Automation in Financial Management

Timestamp: [05:03] - [14:01]

Joe Saul-Sehy emphasizes that automating finances is the "number one way to get ahead with your money." Paula Pant adds that in our busy lives, automation prevents financial tasks from slipping through the cracks, such as bill payments and investments. Jesse Kramer echoes this sentiment, linking automation to reducing decision fatigue and ensuring critical financial actions are not forgotten.

Notable Quote:
Paula Pant at [09:14]:
"Frankly, it's because we're all busy. There are a million things that we have to do. And there are certain tasks in our life that simply can't be automated, like doing the laundry."

4. Strategies to Automate Finances

Timestamp: [14:01] - [25:28]

The discussion transitions to practical strategies for automating various financial aspects:

• Automating Bill Payments:
  Paula advocates for automating credit card payments to avoid penalties and maintain credit scores. However, she stresses the importance of setting up alerts for unusual spending to catch discrepancies early.

  Notable Quote:
  Paula Pant at [43:55]:
  "I have two thoughts on that. The way that I've done it on one of my credit cards, on my business card, is I know, ballpark what our monthly bill should be. And so I just have an alert that says, if we spend over this much money, then send us an alert."

• Automating Savings and Investments:
  Joe shares his experience of automating his paycheck distribution to manage savings effectively, smoothing out the irregular income typical of entrepreneurial ventures.

• Using Tools and Apps for Automation:
  Jesse highlights the importance of calendar and to-do list apps like Todoist for setting recurring financial tasks, ensuring consistency without manual intervention.

5. Prioritizing What to Automate Using ROI and Risk Management

Timestamp: [25:28] - [35:53]

Jesse Kramer introduces Charlie Munger’s principle of inversion as a method to prioritize automation based on potential catastrophic failures. By identifying tasks that could lead to significant financial trouble if neglected, individuals can prioritize automating these critical actions.

Notable Quote:
Jesse Kramer at [16:41]:
"If I wanted to implode my life, financial or otherwise, what are the things that I would forget to do? And those can be the things where you might want to first think about automating it."

Doc G adds a complementary perspective, suggesting that high-risk tasks should have additional human oversight even when automated to ensure they function correctly.

Notable Quote:
Doc G at [18:58]:
"But we both got busy and no one checked it for a month or two. And when we went back, we actually found spurious charges. Some company had been charging us five or six hundred dollars a pop multiple weeks in a row over a few months."

6. Balancing Automation with Human Oversight

Timestamp: [35:53] - [45:28]

The panel discusses the delicate balance between automating financial tasks and maintaining active oversight to prevent errors or fraudulent activities. Paula emphasizes setting up alerts for unusual account activities, while Jesse and Doc G highlight the necessity of regular reviews despite automation.

Notable Quote:
Paula Pant at [44:59]:
"What am I willing to pay in order to not think about this? If that's ballpark the amount of money that I'm bleeding in little charges here and there, then it all shakes out."

7. Personal Automation Hacks and Tools

Timestamp: [45:28] - [51:41]

Each panelist shares their favorite automation tools and hacks:

• Jesse Kramer: Utilizes calendar apps and Todoist for recurring financial tasks and maintaining organization.

  Notable Quote:
  Jesse Kramer at [47:46]:
  "If it's not on the calendar then it's not happening."

• Doc G: Employs tools like Calendly and Descript to streamline scheduling and content creation, reducing manual workload.

  Notable Quote:
  Doc G at [50:15]:
  "I send them directly to my Calendly to sign up for an appointment. And then my Calendly sends them directly to PayPal to pay for that first appointment."

• Paula Pant: Uses alert systems for credit card spending and evaluates the cost-benefit of potentially hiring assistance to manage finances.

Notable Quote:
Paula Pant at [43:55]:
"...if I were to hire an assistant to manually do it, and I paid that assistant $30 an hour, how much would it cost me to pay an assistant to manually do it?"

8. Automations to Avoid

Timestamp: [51:41] - [57:00]

The panel explores what not to automate in personal finances, cautioning against over-reliance on automation that removes essential human checks:

• Breakup Texts and Personalized Communications: Automating sensitive personal interactions can lead to impersonal and potentially harmful outcomes.

• Subscription Management: While automating subscriptions can prevent missed payments, it may also lead to unnoticed renewals and unnecessary expenses. The panel suggests regular reviews of automated subscriptions to ensure they remain relevant and necessary.

Notable Quote:
Joe Saul-Sehy at [32:09]:
"Should we automate all our expenses... I just want to have, you know, those things automatically because I don't have to think about it."

9. Trivia Segment Highlights

Timestamp: [21:43] - [60:47]

The episode features a lively trivia segment, engaging both guests and listeners in financial-themed questions. This interactive portion reinforces key concepts discussed, such as identity theft reports handled by the FTC.

Notable Quote:
Paula Pant at [32:23]:
"Or do I use a totally different analogy? Because you would never kick off to the side of a field goal. But do I do one of those two either?"

10. Key Takeaways

Timestamp: [60:47] - [67:11]

As the episode winds down, the hosts summarize the essential lessons on financial automation:

1. Automate Critical Financial Tasks: Ensure that essential payments and investments are automated to prevent oversight and penalties.

   Doc G at [59:38]:
   "Automate, but check twice if it's important."

2. Prioritize Based on Risk: Focus on automating tasks that, if forgotten, could lead to significant financial distress.

   Jesse Kramer at [59:48]:
   "Prioritize the things that could potentially cause you the most damage."

3. Maintain Human Oversight: Regularly review automated processes to catch and rectify any errors or fraudulent activities.

11. Conclusion and Next Episode Teasers

The episode concludes with teasers for upcoming episodes and additional content from the hosts' affiliated podcasts. Listeners are encouraged to apply the automation strategies discussed and leverage the recommended tools to enhance their financial management.

Notable Quote:
Joe Saul-Sehy at [63:36]:
"Thanks to Paula Pant for joining us today... You'll find out about our awesome team@stackingbenjamins.com along with the show notes and how you can find us on YouTube and all the usual social media spots. Come say hello."

Final Thoughts

This episode of The Stacking Benjamins Show offers a comprehensive exploration of financial automation, blending expert insights with practical advice. By prioritizing automation in critical areas while maintaining essential human oversight, listeners can achieve greater financial stability and success.