When I was in distress, my finances were a whole hot mess! Early Twenties Kae was a financial advisor’s worst nightmare! Eating out, shopping before I paid my bills, living paycheck to paycheck. UGH! I had no clue what damage I was doing to my future financial life.
I wasn’t alone, studies show roughly 77 million Americans, or 35 percent of adults with a credit file, have a report of debt in collections.
Somewhere after a nearly defaulted student loan and a declined credit card application (or two), I decided it’s time I #GetMyFinancialLife together. I started by making the most brilliant budget where instead of eating out I saved all that money. Then BAM! All my financial issues were gone! Credit Score improved! And I lived happily ever after …
#theeliesdotcom & Now for #thetruthdotcom
It was very difficult for me to change my spending habits. It took practice, some wins, some losses & most of all discipline (something I’m notorious for having 0 of!) The following are 3 Steps I took to improve my financial sitch.
Step 1: Make wise financial goals.
It’s unreasonable to expect to go from saving $36 monthly to saving $500. Instead stuck with an attainable challenge of saving maybe $25 weekly. (That’s 200 beans by the end of the month!)
Step 2: Prepare for success!
Remember I mentioned how I had 0 discipline? I had to leave my credit & debit cards at home and only carry cash for things I needed each day. I also got in the habit of paying my bills as soon as I got paid. That way I didn’t even have the money to blow!
Step 3: Revisit The Plan Regularly.
I have monthly meetings with my “household” (which is just me right now til my Knight finds me). Monthly I revisit what went right, what went wrong, and if my goals were met. I also set goals and a budget for the following month as well as schedule the next month’s meeting.
If your finances are in distress and you need more than just 3 baby steps to get organized; I’ve developed a tool to help you get your finances out of distress. If you want it delivered to your inbox click to join the newsletter. A copy of the Financial Planner will be sent directly to your inbox.
I hope these baby steps help you to get your financial life organized and out of distress. Are there steps you’ve taken to improve your finances? What are some things you’ve done or lessons you’ve learned to help improve your financial situation? Tweet me.
Be bold. Live out loud & as always remember,
Read more articles on managing your money: