I asked on twitter some time ago, what type of content you guys want to see more of? I got a lot of suggestions. Money was one of the most suggested topics. In our world, talking openly about one’s income is considered taboo because people tend to associate their self-worth with how much money they make or have.
My goal for this blog is to create a safe comfortable space for young women like myself to learn and have conversations about money without being judged or pressed to show off. I want to offer insight, hope, and guidance to any of you on the journey to building wealth.
Wherever you are on your journey to building wealth, I am more than certain you can get to the stage you desire.
I grew up in a household where we talk about money easily. My dad, a man of character and action, made me understand many life principles without many words being said. He was the breadwinner and the financial guru. And my mom, although she never really “work” she was/and still is a hustler.
At an early age, my dad laid the foundation for me to become financially successful. He was and still is very saving, budgeting, and investing focused. He taught me that having my own money would allow me to make my own decisions and live life on my own terms. So I knew very early that I wanted to be a woman who was independent, who was in charge of her life, who could pay her bills, and who did not depend on a man. The man would be a choice.
He has given me valuable financial lessons that I can’t wait to pass on to my children.
The very important lesson I’ve learned from my dad is the value of discipline and the importance of managing your money. He appointed me as his Financial Advisor, so I had no choice but to apply those principles to my life. I’m very grateful to have had that exposure because not everyone can say they aware of their family’s financial affairs.
A lot of my parents don’t talk to their kids about money. So it’s easy to fall into the trap of making bad financial decisions without the proper guidance.
Actually, my dad was the inspiration behind me pursuing a master’s degree with a focus in Accounting/International Business. I’m sure he would have been an Accountant himself had he gone to college. He lives by this motto “I’m not frugal, I live smart.” He worked long hours, never called off of work, budget, maximize his 401K, invests, and save some more. He hardly goes shopping himself. He always dressed nicely; in fact, he has had the same entire wardrobe my entire life. When my brother and I buy him something, he always asks for the price and tells us what we could’ve done with the money. He is a funny old man.
From the books I’ve read, podcasts I’ve listened to, and videos I’ve watched. One common lesson I’ve learned is that it takes discipline and having your priorities in order to reach financial freedom. We so used to have everything we want now that we have forgotten how to delay instant gratification. I’m not saying don’t enjoy life, all I’m saying is if you have big financial goals you want to accomplish, you will learn how to adjust. The art is not in making money, but in keeping it. If you can’t manage $30K, you won’t be able to manage $100K.
Discipline, not deprivation, is the ticket to financial security.
Despite the great money lessons I learned from my father, as well as the lessons I learned from studying personal finance, I still managed to make a few mistakes of my own. Please know that I’m not a financial expert, these tips are solely based on my personal financial journey. I hope you find them helpful.
Budget
- Dave Ramsey says “If you want to achieve financial peace, you are going to have to budget”. A budget simply helps you tell your money where to go, it helps you track how much you are spending. You don’t want to spend more than what you are making. I budget my money down to the last $. Every $ has a place to go. I do my budget monthly and review it every week/biweekly as I pay bills. There’s a lot of resources available online for you to create a budget. Also, if you are just starting out, be kind to yourself if you’re not good at budgeting, it’s okay! It takes time. Practice makes improvement. Start today. Start now. I’m more than happy to send you my budget worksheet, leave a comment and I will send it to you.
Save
- Saving gets easier once you know where your money is going. It’s important to have an emergency fund with at least $1,000. Your emergency fund should be separate from your personal savings account where you should aim to save at least 3-6 months income. Personally, I create for myself savings challenge (Pinterest is full of them ) I automate my savings by setting up transfers from my checking to my online savings account Biweekly. Most traditional banks have horrible saving interest rates. They’re usually like 0.01% you making nothing on your saving and with inflation, you’re actually losing money over time. I strongly encourage you to sign up for an online savings account with at least 2.5% APY. Banks like Ally, Capital One, Charles Schwab, Barclays, and more have great APY. Keep in mind that APY has recently reduced due to the Federal Reverse cutting interest rates due to Corona. Do your research!
Debt
- Apart from student loans which account for over $1 trillion debt in America, According to consumer reports, the average American household is about $38,000 in consumer debt. Paying debt can be overwhelming especially if you don’t have a plan. Dave Ramsey’s free recourses have helped millions of people become debt. The Snowball method: for those who are not familiar with this method, it is basically a strategy to pay your debt in order from smallest to largest. As he said himself, “the method is designed to help you change how you behave with money so you never go into debt again”. You start with the smallest debt, as you free up money, you add them to the next balance. I have used this method, it works! I have a tab in my financial worksheet that can help you with this. If you need help coming up with a plan, I will be happy to help.
Credit Cards
- They can be your friend or your enemy. Only spend on your card what you can afford to pay in full. Pay attention to your APR (Annual Percentage Rate). I read an article once that says only 39% of cardholders in the U.S know their APR, so this means the other % have no clue how much they are paying in interest. Transparency moment, I have a total of 8 CC with zero balance. I only use my cards for cash back rewards and travel points and when I do I always pay it in full.
Invest
- Investing is about making your money grow. That is how the rich stay rich. If you want to be part of the 3% you have to INVEST. Investing wisely will help you reach your financial dreams. In the words of the wealthy Babylonian “Learn to make your gold work for you. Make it your place, make its children and its children’s children work for you.” That my friend is the power of compounding interest. Maximize your 401K – it’s free money. Invest in stocks, bonds, Roth IRAS, Mutual Funds, life insurance, future kids education. Imagine, If you start now, you will be a millionaire by the time you retired. My goal is to retire by 35, God willing. Don’t put your eggs in one basket, put your money into various investment accounts. Diversify your portfolio! You can start as small as $50/monthly.
If you find these tips helpful, I hope they can help you and guide you on your personal financial journey. As mentioned I do have a personal budget worksheet, if you would like a copy let me know.
