Today we are talking about financial tips because life is so much better when you are getting to and holding on to the bag. Living your best life looks different for everyone, but here’s what it means for me: being able to go to the bar and not worry about my card declining, being able to purchase gifts to celebrate loved ones at the last minute, being able to pay for an unexpected flat tire on a random Wednesday, getting my car towed and knowing that I have the funds to get my car out immediately, and being able to afford vacations that I want to take when I want to take them. Having the funds to do what I need to do when I need to do it and being able to do what I want to do when I want to do it.
Have you ever went on a vacation and had to be mindful of every single dollar you spent? It’s the worst feeling ever!!! It happened to me a few years ago and I vowed to never be in that position again. A few years ago I created some financial guidelines for myself to ensure that that would NEVER happen again. I’ve stuck by my code (financial tips) and my funds are in a much better place now than they have ever been.
Unprocessed Disclaimer: I believe in people winning, which is why I’m sharing my gems with you! What works for me won’t work for everyone else, but if I don’t even put the game out there then I’m not giving you the option to play. That said, let’s jump into some financial tips that will have you living your best life sooner rather than later.
Set a detailed financial budget
Having a monthly budget is a very important, but highly neglected aspect of financial planning. I understand why since it takes some time to sit down and understand, update, and track. However, if you are not the type who wants to be bothered with doing it yourself, there are so many apps to help you create and stick to a budget. I use a standard, custom-created (by myself) excel sheet that houses my budget, but there are tools to help those who are beginners and experts. Some of them are free and some cost! I recommend the free versions for the simple fact that they are free, but they also give you a more hands-on experience since they require more effort on your end. There are also endless, free-downloadable templates on Pinterest for your use that also gives you great financial tips! Budgeting is the tool that helps you understand where you are financially and helps you plan where you want to be. It allows you to hyperfocus on your financial goals while keeping in mind the reality of your situation. Budget your life and budget your funds! It’s important for your financial growth.
Pay yourself first
I understand how hard this can be when you have a light bill to pay, an oil change to pay for, and groceries to purchase. However, you did the work, you put in the time, you deserve to be paid first! The first bill you pay should be to your savings. Stash away a reasonable amount, every paycheck, according to the budget that you’ve set for yourself. Don’t think of the immediate impact, think big picture – think the future! You are prioritizing your savings. You are investing in yourself. You are preparing for unexpected expenses, securing your financial future, and teaching yourself healthy financial habits. The best way to do this is to make it invisible. You can do this by creating an automatic transfer from your checking account to your savings account each payday. Or, if your employer offers a retirement plan, enroll as soon as you can. If they match it, even better! Another way to capitalize on paying yourself is to set up a high-interest savings account! Remember- paying yourself is centered around saving for your future and not saving for your weekend!
Don’t touch your savings. At all. Ever.
Speaking of savings… DON’T TOUCH IT. Your savings account should be a one-way street; money goes in, doesn’t come out. Discipline is super important here because you have to be willing to live below your means while keeping in mind the reward tied to your sacrifice. Of course, with saving, the bigger picture is your future! Get into the habit of knowing your wants versus your needs and adjust your lifestyle accordingly, if needed. Set short-term goals weekly, monthly, quarterly to ensure that you are making progress and reward yourself for it!! One of my favorite discipline quotes reads, “you will not always be motivated, so when you lack motivation, you must be disciplined.” Your motivator should always be financial security and financial freedom. Put your money away and forget about it. Create a system where you cannot easily transfer money from your checking account to your savings. Lock yourself into a CD account. Do what you need to do to save, but make sure that you are not touching it.
You should know every penny that comes in and out of your account
This sounds tedious, but if it’s your money you should know where it’s coming from and where it’s being spent. This is heavily tied to budgeting because if you can track what’s coming in and going out, you should know where every single penny of your money is allocated. I’ve never understood the fear that people have with checking their account balance. Primarily because you should always, ALWAYS want to know where you are financially. If it’s not where you want to be, check it anyway. If you went out the night before and spent more than you expected, check it anyway. If you have all of your bills on automatic draft and know you took a hit at the beginning of the month, check it anyway! Creating a sense of financial self is critical to financial growth. This is where you become more aware of your spending habits and behaviors.
The truth about, “If you can’t buy it twice, you can’t afford it.”
The truth about this mantra that was given to us by Jay-Z is that it works in some instances, but not all. This rule holds true for almost everything except large expenses like cars, houses, education, etc. It’s more important for discretionary (non-essential) expenses such as clothes/shoes, furniture, a yeti cooler (which I really want, but can’t afford to buy it twice – unless I drop tuition), etc. If we’re being honest, I don’t even think it applies to those as much as one would think. Sure I can buy a pair of Jordan’s for $200+ dollars twice, but can I buy them four times over? In that case, can I really afford it? What if I only have $500 in my account. So I buy Jordan’s twice but then can’t afford the shoe whitener that is offered alongside of them. I think this rule is all about where you are financially. If you had to save to buy your Gucci belt, you can’t afford it. Not to say that you don’t deserve it, you just don’t deserve it right now. Practice rewarding yourself, but don’t put yourself in a position to wrongfully justify you being able to afford something that you truly cannot afford.
Tips that I left out (or not), but see as really important
- Making paying off debt a priority
- Don’t over-utilize credit cards. There is some benefit to them, but only if used responsibly.
- Improve your credit score
- Cook and eat at home
- Double up on payments when you can
- Differentiate between needs versus wants
- Live below your means
- Set goals (short and long term)
- Pay yourself first
- Make thrifting your first option (for all my shopping-lovers)
- Do your hair
- Create a budget
- Pay yourself
I’m No Expert, but…
With these financial tips, you will be on your way to living your best life without having to worry about limited funds. In no way am I a financial expert and I’m trying to figure things out just like everyone else. However, these tips have worked very well for me and I truly believe that everyone should incorporate them. These are small changes that have a mighty impact.
