In the blog, Understanding how credit work, The Road to Financial Freedom, I detail essentially my whole adult life lol. No, but seriously, I want to be relatable so that post was super open about my relationship with money in the past and now I’m going to take on the journey of repairing my relationship with money.
Last month I attended a business conference hosted by The Chick In Charge, herself, Mary Parker. Now Ms. Mary is a millionaire but she says if she had a better relationship with money earlier in life she would be a billionaire! Now those are words I could only dare to let flow from my lips. Ever since her conference I’ve been watching my money spending habits.
- Lower class OR broke minded people-Spend money as soon as they get.
- Middle Class people- Hold on to money as long as they can.
- Upper Class people- Invest their money
- Wealthy people- Use money as a tool to build more wealth
Now hold on just one second. That last one got me in the gut. Think about people who truly have wealth. They aren’t flashy. Mark Zuckerberg, Steve Jobs, Warren Buffet, even Auntie Oprah. These people are not flashy but we know they have money for generations to come. The use their money to better others in the world. They invest their money in people and projects that are dear to their hearts. So how do we as regular people get there?
- Get your personal finances in order:
- I created an excel sheet of all of my current expenses. Like I sat down and literally input every single transaction I made over the past 30 days into excel to really see my spending habits.
- I opened a new bank account (online) at my current bank and created it for bills only, after creating the excel sheet, I know exactly how much I’ll need to budget and move over to the bills account monthly.
- I’m using a portion of my tax return to float some extra money into the bills account. Some of the larger bills need to be split in half but I need to give myself cushion to do so.
- I got a debit card for that account AND I personalized the card to look different from all the rest. All bills will automatically come from that account.
- I paid off my smallest credit card and set ONE recurring monthly bill (I used Netflix) and it will auto draft from the bills account monthly. Pro Tip: Set the bill to auto draft after your statement date but before the date (ex: statement date is the 5th, the due date is the 9th, pay on the 7th or 8th) so that it shows as the bill was paid-in-full each month. *Learned this from the Budgetnista
- I purchased Dave Ramsey’s updated version of Financial Peace. Financial Peace Revisited include chapters on Marriage, singles, kids, and families.
- I changed my mindset for real. As an entrepreneur and as a mom there comes a time when the idea of what my life looks like after the kids are gone becomes clearly into view and Y’all I gots some thangs I’m trying to do when my oldest flys the nest next year.
Stay tuned to our financial independence series for more tips. If you haven’t read my other post check it out here!