It is 2019 and you know what is sexy as fuck … being a financial badass!
You know what else is sexy?? …. having a handle your your money, being an adult and dealing with your shit like a mother fucking boss. The more I get my money shit together, the more I don’t get the people that don’t. Seriously though, those are words I never thought I would ever say. Truth is I used to be a wreck, I really did … but times have changed. I’m all grown up … so here is a list of things that helped me get started on my path to financial freedom:
- Become financial literate. Read. Listen. Research. The only way to learn about how to get your money shit together is to actually learn about money. Do your homework. Start following some budget gurus. Find someone that you can relate to when they talk about money – there is a lot of information out there – take the time to learn about it. Put it into practice.
- Get real with yourself – What do you owe? You can’t start anything until you make an honest effort to understand what you owe. You need to open up all the statements and process the amount owing, the interest you need to pay, how far you are behind and what you need to get ahead. You need to answer all the creditor phone calls and figure out where you stand. As scary as it is – you just need to know the damage so you can move forward.
- On a spread sheet – either pen and paper or an excel spreadsheet – list out all the debts. Even better – list out everything you need to spend money on every month. All the debts & their interest and their payment dates. All your other bills – all the due dates. Where is your money going every month? You need to know this so you can you can tell your money where to go instead of panicking and trying to figure out what to do with what is left.
- Open a second (or third or fourth) bank account, you need to have at least one for bills and one for spending. Only carry the card for spending so you only spend your spending money. You need to have separate accounts for paying delinquent debts and collectors and only one place if you have agreed to let an automatic deposit come from your account. An unpopular opinion but something I do – stop all automatic payments and actually pay things yourself. if you chose to do this – you need to actually make the payments and be SUPER on top of your money.
- Pay. Things. On. Time. … you need to avoid more interest, late payment charges, NSF charges and basically anything that requires you to pay extra on the debt you are already paying.
- Figure Out a Starting Snowball – pay minimum payments on everything accept the smallest debt – anything extra put on the smallest debt until it is pad off. Feeling the mother fucking joy of actually paying something off will motivate you to pay off other things.
- Cut Out All Extra Expenses – Do you need that latte or can you make a delicious coffee at home? Do you need that book? Can you go to the library? or read it online?
- LIVE WITHIN YOUR MEANS …. your rent/ mortgage should not amount to more than 30% of your income. Tally what your take home money is … and figure that out. Are you paying to much to live? Can you make it cheaper? Get a roommate, Airbnb, Short Term Rental?
- COOK FOOD AT HOME. I know, I know – but it is so much cheaper. Learn to cook, drink some Kumboucha with dinner or Wine or whatever … MEAL PREP, MEAL PREP, MEAL PREP …. if you tally up how much your spend monthly on food it is probably insane – cooking a good portion of your meals at home is healthier AND will cost you less money
- Find hobbies that a) keep you fit and b) earn you extra income … free hobbies are the best hobbies to find while you try and get your financial shit together.
Keep yourself sane – make a treat wishlist for when you hit certain financial goals. Paid off the first credit card – maybe you can treat yourself those shoes you really wanted – paid off you massive soul crushing student loan – maybe it is time for a new laptop. You get my point – in the journey to get yourself in a better position you need to treat yourself as well …
That is all I have for today – still plucking away on the second debt in my snowball. Feel the pending joy already.
Baby steps to big success,