I began my personal finance journey almost three months ago, on May 8th, 2019. The past few years I’ve actually had the desire to learn more about personal finance, but I had no idea where to start. This area of learning made me feel incredibly overwhelmed and intimidated, and these feelings kept me from taking any steps towards change. Meanwhile my credit card debt kept growing, reaching a new personal high of $10k. I also still had $10k left on a car loan, and only $3k in emergency savings. Yikes! Definitely not a secure place to be. It wasn’t until I started experiencing issues with a toxic boss that I started seeking out change. After several months of very painful interactions with this boss, I realized my current work environment was not sustainable and questioned whether I wanted to stay in the corporate culture much longer. One thing became clear: I would need to get out of debt and build my savings if I wanted to make any significant life change.
The Moment of Change
I remember one night at the gym, trying to find podcasts about personal finance. Searching “finance” on Apple Podcasts gave me meager results, but thankfully the ChooseFI podcast popped up. This was the moment that everything changed. While there were many episodes that had terminology that was completely foreign to me, I kept listening, ingesting podcast after podcast, and looking up terms online to teach myself new concepts. The philosophy to reach financial independence resonated so strongly! I so badly desired to get to this place of freedom, where I would have options on what to do with my life.
Since that evening I have found additional podcasts, books and websites that I have been ingesting non-stop. My desire to learn and achieve this new vision of freedom for my future has become my new focus, and has touched every area of my life. I can’t believe how much I have changed in these three months!
I’ve Learned How to Budget
No longer am I following the herd in my spending habits. Where I once spent wherever my desires lead me on travel, food, and clothing, I now keep a strict budget. I attempted monthly budgets previously, but never maintained them with any consistency. This is how my debt kept growing. The feelings over fear and intimidation towards personal finance kept me from actually LOOKING at my financial mess. I now keep a zero-based budget for each paycheck, and every single dollar I earn has a purpose. I check on my numbers daily to remain on track and focused, and it is my new favorite hobby.
I’ve Learned to Say “No”
A major realization I’ve had by budgeting is that I can’t have it all. My budget is truly just a list of my life priorities, and as such, I have had to learn to say “no” to anything that is not a priority right now. This has been HARD. I love travel, fashion, and fitting in among my colleagues in the entertainment industry. My social experiences were centered on going out and spending money. My boyfriend is a big foodie and loves fine dining. You can imagine how I have had to make the tough decision to say no to many of these social aspects of my life that require spending money. These experiences are still things I enjoy, but they are not my priorities. If I envision a life free of debt and with a net worth that can allow me financial freedom, I have to say no. This has resulted in a new lifestyle for myself, and I can confidently say I am now a different person.
I’ve Learned to Have Courage
After making excuses as to why I couldn’t go to “X” restaurant or “Y” weekend getaway with friends, I eventually realized that I had to muster up the courage to explain my new lifestyle to my friends. I wanted to be honest, and I didn’t want to allow the shame of my financial circumstances to affect these relationships. It hasn’t been easy, and a few conversations have been very awkward about this “taboo” subject of money. However, my dearest friends and my boyfriend have been incredibly supportive and understanding. My social experiences have definitely been more limited, but intentional. I make sure to find ways to spend quality time with those I love in a way that fits my budget - because what is important to me is the relationship, and not the way in which we spend time together.
I’ve Learned to Be Kind to Myself
While my lifestyle has undergone massive change, I have learned to be kind to myself in this process. I no longer allow myself to feel shame about the debt I racked up. I no longer allow money to be a “taboo” topic. I have learned the importance of budgeting for “fun money,” and how much I need to seek out balance in my saving habits. Completely restricting myself from spending on anything “fun” kills my joy and invites so much more opportunity for binge behaviors. Finding this happy balance of saving money yet still allowing myself to eat out occasionally, or to go to the movies for a date night, is so essential if I wish to be successfully debt free - and stay that way!
I am so excited about the almost $8k of debt I have paid off in the past three months! I am so close to being completely credit card debt free, and seeing this significant progress has given me such incredible motivation! I’m already starting to plan my next steps - building my emergency savings, my retirement accounts, and my overall net worth (I know I’m not going completely in order with Dave Ramsey’s Baby Steps). I will have to decide how quickly I will aim to pay off my car loan as it has a very low interest rate, and I am starting to learn more about tax strategy with various retirement vehicles.
As I begin this new blogging journey, I’d love to hear from you! The Debt Free Community has been an incredible encouragement and resource for me, and I hope to help spread the word and affect the culture of consumerism I was once a part of. Feel free to leave a note to ask questions, suggest any additional tips or resources, or just to say hi!