I've always wondered what it would be like to grow up with a silver spoon. As a child, I fetishized the lavish lifestyle of the wealthy and often engaged in pretend play with my imaginary butler and maid "Vivica" (lol). From these fantasies, I attempted to bring the lifestyle into fruition by shopping and overspending to the point of a whopping $40,000 personal debt. This landed me in a vicious cycle of banking on tomorrow's dollar and being in agreement with living paycheck to paycheck. To add, I had no real foundation of how to keep money. My savings account was nonexistent, but somehow I was able to spend upwards of $1,000 on happy hour, tequila and champagne in a matter of three days!
Today, I have had the blessing of gaining stewardship over my finances. Stewardship is the management of your talents whether it be knowledge of how to build a table or do hair. When you have good stewardship, you are able to manage yourself in such a way where you can use your talents to help others, and I am finally getting to a place where my financial freedom is benefitting my child's future. While this took many years of planning and shifting my mind around money, it has been such a fulfilling journey.
Gaining Financial Stability
Tip #1- Put Yourself on a Budget
Budgets are such a great way to see exactly where and how you spend your money. With a budget, you are able to track expenses and make monetary goals that will avoid you overspending.
Tip #2- SAVE, SAVE, SAVE!
Saving can be hard, especially when you've learned to rely on retail therapy, like me. However, it is crucial to always have money to fall on as life can be very unpredictable. At the time of my pregnancy, my savings was easily depleted due to the needs of my growing child. Life changes like these can definitely put us in. a bond, therefore, be sure to always have three to six months of expenses saved.
Tip #3- Have a needs over wants mindset
Those new pair of shoes that you like so much might look adorable on your feet, but won't that extra money look just as great in your pocket? There are times when we have to learn how to sacrifice what we want to move us into a financially secure position. There will always be a latest shoe, purse, or car, but there are just as many essential bills that need attention. Can a pair of Jimmy Choo's make you a sandwich?
Tip #4- Give yourself a monthly limit for fun
Ever heard the term "mad money"? Mad money is a fun way to say "money used for impulse purchases". Even though we would love to buy everything we see, it is not the best way to get rich. So, give yourself a set amount monthly which you can spend however you so choose. The best part is, as you become more financially secure, you adjust this amount as you please.
Keep in mind that I have yet to hit my target of becoming wealthy, but I am definitely on my way. I have been able to open and maintain life insurance, savings accounts, an IRA and add an additional portion of my salary into a pre-tax account! With these financial endeavors, I hope to one day bring my pretend play to life for many generations to come.
Don't take my word for it? Catch up on some financial stats and advice.
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