Happy New Year! It’s been three weeks since we kicked off the new year, and trying my best to stay on track with the goals I’ve set for myself. Like everyone else, once the clock struck 12 on 1/1/18, I felt like it was go time, a restart, a time to gather my life in ways that I hadn’t in 2017. Whether your goal is to lose or gain weight, read more, strengthen your relationship with God, or find a new job, the hardest task is to get started. I’ve learned one of the best ways to achieve any goal you have is to set small goals that will help you achieve any larger goal. Three weeks in, and I already realize this will be the year of confrontation, for me. For one reason or another, situations, conversations, and business that i’ve been avoiding has been resurfacing, forcing me to tackle them whether I want to or not. This has also been the case with my finances.
Everyone has their own relationship with money. Whether negative or positive, I think it’s safe to say that at some point in your life, you start to examine and make critical decisions on the best ways for you to handle your money. For many of us that may mean we start to get serious about our spending habits, bills, and investments.
As a rising 20-something recently out of college, these past 6 months have been a time of observance and difficult decisions as far as money is concerned. I haven’t always been this way, but, gone are the days of carelessly spending my checks on clothes, social events, and grub hub. Less spending out of habit, and more spending with mindfulness, and intention. I decided that if I wanted to start living my ideal life, I had to take a look at my spending habits and make some adjustments. Between graduating, being jobless, and then landing a job, these six months have taught me valuable lessons on living with less, sacrifice, and accountability.
Here are a few ways I’m addressing my finances this year:
Opening a Savings - Around March, of last year, I decided that if I wanted to get serious about my money, it would be best for me to open a savings account as a way to hold myself accountable about saving. I’m one of those people who rarely carries cash, so if I don’t look at my statements every month, it’s easy for me to aimlessly spend. Before, my decision to get real about my coins, I would fall into the vicious cycle of getting paid, spending, and then making my money stretch until the next pay day. This is no way to live. I never had an emergency fund, and ironically, I was taking a class on finances at the time. One of the most valuable lessons taught, was on short term and long term saving. It was that class that made me pay attention to the age old saying “put 10%-20% of each paycheck into a savings” It was the confirmation I needed, and it’s literally been saving (pun intended) me ever since.
Paying off Debt - Whether you have credit card debt, school loans, home or car loans, to some extent we all have debt, and if you don’t you’re BLESSED. Regardless of the number that’s attached to your name, or how long it will take you to pay it off, there are a few ways to tackle debt. I’ve recently started listening to Dave Ramsey’s podcast, and hearing his listeners who call in with what often seems like an insurmountable amount of debt share their stories on how they paid their debt off gives me hope that in a couple of years I can pay off mine as well. Much of the advice Dave gives is about reducing and downsizing in areas you didn’t know you could, picking up a second job, and paying off the smallest debt you have and working your way up. Sacrificing, now so that you can relax later. This year, I’ve vowed to pay off my credit card debt and get a handle on my student loan repayments. The more intention I set behind it, the more I invest in my payments, and the closer I am to achieving my goals.
Learning - Tackling your finances the responsible way may be new for some, especially if you grew up where money management and smart spending choices were not discussed. Books, and recently podcast have been a saving grace for me. Whenever I'm inexperienced on a particular subject, my first inclination is to research and find books that’ll teach me something new. While the idea of getting real about my finances made me uncomfortable at first, I knew that there were experts on the subjects who could make learning about money and finances a fun experience instead of a burden. There is a book on EVERYTHING, and once I decided I was going to get serious about my money, budgeting, and smarter financial responsibility, books were my go to. Below are (3) books that will get you and your finances together in the new year.
• You are a Badass at Making Money- Jen Sincero
• The Index Card: Why Personal Finance Doesn’t Have to Be Complicated- Helene Olen
• The Total Money Makeover: A Proven Plan for Financial Fitness- Dave Ramsey
There are also a TON of money management apps, such as Mint, Bill Guard, Good Budget, The Birdy, that help track your spending, give you updates on your credit score and much more. The point is to get honest, and then get creative, and utilize resources, that’ll aide you on your journey to freedom.
JAHMILA SMITH
Contributing Writer & PrettiPassionate Member