The following blog post is part of The Road to Financial Wellness blog tour. The Road to Financial Wellness is a three-month, grassroots campaign promoting financial empowerment on a national level and encourages people to pursue their dream lifestyle. Find out more about local events near you.
I didn’t really get serious about my finances until I took a look at my net worth. Three years ago I had a negative net worth. I was afraid to really sit down and figure out what this number was. Once I sat down and added up all of my assets (Everything I owned) minus everything I owed (all my debt) I was in the negatives. This is when I really got serious about getting rid of debt, saving and investing. You have to be willing to make the change in your life. You have to be fed up with where you are and want something better. Below are some tips that helped me buckle down and get serious about my finances.
Grab your free slay your debt guide here.
Create a plan, and keep it simple.
“If you always do what you’ve always done, you’ll always get what you’ve always got.”
– Henry Ford
I know, I know you hate budgeting. I like to call it my wealth-building plan. Just thinking about sitting down and typing numbers into an excel spreadsheet, gives you anxiety. I understand. You don’t need excel. Grab a piece of paper, or an index card, and a sharpie.
1. Write down how much you take home each month.
2. Figure out what bills absolutely need to be paid each month. Once you know this number this is the amount of money you need for you mandatory bills. Cool you’re half way there.
3. Put aside a percentage of money towards saving and investing.
4. Put some money aside for your “fun guilt free money” ( don’t get crazy lol)
5. Now think of one money goal that you want to accomplish right now. Do you want to pay off debt one of your credit card debts? Put the majority of what you have left towards your one money goal.
6. Pay the minimum amount towards the rest of your debt.
Boom you’re done. Once that goal is done move on to the next goal to knock out.
Be realistic about your debt plan.
Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
Don’t just say I want to pay off my credit card debt. You need to be more specific. I want to pay off my credit card debt by April 15, 206. I will pay $300 a month towards my credit card debt. It’s important to give yourself a debt date. So you’ll be encouraged to stick to your goal. It’s also very important to pay more than the minimum amount on your debt.
While you’re paying off your debt, don’t neglect your savings
“It is the debtor that is ruined by hard times.”
-Rutherford B. Hayes
No debt + no savings= debt. This is because once all your debt is paid off, what if you run into an emergency? What if your car breaks down, and you have no savings to pay for it. Now you have to swipe your credit card. Which brings you back into the debt cycle. You need to have multiple goals. So be sure that you’re saving while you’re paying off your debt.
Just like you need an emergency fund, it’s important to put money aside to invest in your own development.
An investment in knowledge pays the best interest. –Benjamin Franklin
This fund is for future business goals, side hustles, or education. If you’ve ever wanted to start a side hustle, it’s important that you’ll have money put aside. If you love taking classes or attending conferences you can also use money from this fund to pay for it. It’s super important that you’re constantly investing in yourself. You’re never done learning.
Put your own financial needs first, and learn how to say no.
“Secure your own mask, before assisting others”
It can be so tough saying no to family, but we have to learn to put ourselves first. Or else it will only bring us down. Financially helping out your family members, who don’t have the proper money mindset, will only hurt them in the long run. (It will also hurt your pockets and possible your credit)
Figure out what wealth means to you
It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy. –George Lorimer
People always ask me how do I stick to my money plan? Well once you realize what wealth means to you it will be easy to not waste your money on things that aren’t really important to you. Wealth doesn’t always mean material things.
Maybe to you being wealthy means new experiences, or having more freedom, or spending time with your family. If you know what wealth really means to you
Is it will be easy not to spend your money on things you don’t really care about.
If you have to walk around with your money goals in your wallet, do it.
Find a charity that’s important to you that you can give to.
Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. –Dave Ramsey
Giving is important, not only are you helping a great cause, but also it makes you feel better when you give, and knowing that you’re making a difference in the life of others.
Those are my 7 tips for you if you want to get serious about your money. Do not give up, your future self is depending on you. Also if you’re struggling to pay off your debt don’t forget to download my free slay your debt guide here.
Let's be e-mail official :-*
Join me and the rest of the Young Yet Wise crew as we build our future, differently and reach our money goals! Plus grab your free slay your debt guide!