Instead of discussing all things health and wellness on this week's post, I've decided to talk money. This is simply a follow up to last week's "Money Matters" podcast. I think it's important to follow up, as money is important and so is financial freedom. Additionally, I feel really good talking about money after having consulted with a financial advisor yesterday. Our talk confirmed some of my current money management practices and also informed me. First, I'd like to highlight what I deemed most important from the podcast and what I really want you to get.
1. Listen to my mom and "live below your means." In doing so, you will simulate a bow and arrow. What I mean by that is this: in holding back now, you will be able to propel yourself much farther in the future. (I stole this reference from the Bishop T.D. Jakes by the way. He talked about this in his Reposition Yourself book.) I deem this a valuable tip because as a young adult and/or young professional, it is easy to believe that we need or deserve certain luxuries when in all actuality, we haven't worked hard or long enough to "reap the benefits" just yet. I am still learning the importance of NOT keeping up with the Jones'. I'm just trying to keep up with Ms. Townsend.
2. Be honest about how much you make in contrast with the amount of money you can comfortably save and spend. This is why BUDGETING is of extreme importance. As I mentioned, I set aside 10% of my earnings* to automatically be saved plus an additional 10% to tithe (first fruits). After doing this I write a diagonal list of every single bill I have and total it. Next to it I write down my monthly earnings and subtract the total of my bills. Afterwards, I can determine whether or not I have some extra dollars to throw around or stash in a savings account.
3. A tip I learned a few months ago was the importance of paying YOU first. This means when writing out your budget, ensure that "you" money is incorporated into it. What "you money" looks like for me is extra cash to have during the week outside of my grocery money, to buy a snack, go out to dinner. This is basically petty cash, if you will.
*The financial advisor challenged me to save 15-20% of my earnings in order to better prepare me for retirement. Again, I advise doing what is comfortable.
I feel so strongly about this topic because I have been privileged to observe and reap the rewards of my mom's financial habits. It has been painful to watch other Black people squander their money on meaningless things that will not accrue wealth. I think everyone deserves a chance at being in complete charge of their money. So here's your chance. Click this link for your start. http://thefinancebar.com/wp-content/uploads/2015/05/Bundle5CreatingaCustomizedBudget.pdf
Ready? Set. Go!
P.S. Feel free to share savings and budgeting habits that have worked with you. I'm so open for learning and growth!