Start Here: Learn to Manage Your Finances
Let's Cultivate (W)health
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Let's Cultivate (W)health 〰️
I personally avoided all things finance related like the plague for years. I was making good money from the age of 15 and I thought I was rolling in the dough. For context, I used to think I was stacked and definitely had spending that matched. I was in fact so, so far from being stacked.
I never considered learning how to manage my money. I thought I was doing it right. I had a checking and savings account and my bank’s student credit card with a $1,000 credit line. I mean what else does one need? JOKES. I remember a time when I was my former materialistic self, I tried to buy a Gucci bag that was over $1,000 and I realized, oh shit. how do I buy that when my credit card only has $1,000 available?! And so began my journey into understanding how to manage my finances better.
Let me start by saying anyone can and should manage their finances. No one will care about your money more than you. A lot of people in our society will feel unqualified and just 'let the professionals handle it,’ but that will cost you in fees in the future, so why not even try to attempt learning yourself?
My top beginner tips are:
Getting your mindset right is actually a game changer — I totally thought I had a good money mindset to begin with and didn't need to adapt it. I was SO wrong. I read a lot of books on mindset, and some favorites are You Are a Badass At Making Money by Jen Sincero and The Psychology of Money by Morgan Housel.
Get extremely clear on your finances — this can be HARD. Most people don’t want to see how much money they may spend on certain things. However, this step is crucial for building wealth! You have to know where your money is going, it’s your hard earned money!!
Set up an emergency fund — this is cash you have on hand to use in case of an emergency (hence the name). Most suggestions I have found and personally follow are anywhere from 3-6 months of your annual expenses funded. Example: you spend $30,000 a year; you’d want to save $7,500 - $15,000.
Pay off all high interest debt — high interest vs. low interest debt will be another post, but mainly this means any credit card debt that has an interest rate higher than 6%. Student loans or a mortgage are a different type of debt depending on how you look at it.
Hopefully you found some of this helpful & if you’d like to learn more connect with me over on Instagram!
invest early & invest often
**disclaimer: this is not financial advice. this is only based on my experience. please always do your research.**
