W.T.F.F. (Working Towards Financial Freedom)

“50 told me go ‘head and switch your style up and if they hate then let ‘em hate and watch the money pile up.”          As much as it pains me to quote Kanye West right now (you’d know why if you’ve been keeping up with the news over the past few months), I have to admit that although I’m pretty sure it probably wasn’t his intention, the line from his song “Good Life” is quite fitting for those wanting to improve their financial lives How so, you ask? hanging your mindset when it comes to money despite what others may think or say (i.e. switch your style up and if they hate then let ‘em hate) is one of the most important steps you can take to better your finances — or as Kanye puts it ‘watch [your] money pile up’. 

           According to a 2019 survey conducted by Go Banking, 69% of Americans have less than $1,000 in savings , leaving many in a vulnerable situation should an emergency arise; and unfortunately emergencies do arise. Whether it's a broken household appliance, car troubles, an unexpected bill, or an unforeseen medical issue, sooner or later, you will be faced with a situation that requires money that you may not have planned for. So, what happens when someone without savings is hit with an emergency that needs to be paid now? Some may turn to their credit cards, others may be able to borrow money from a friend or family member. But what if these options aren’t available? Enter the Payday Loan. An option that roughly 2.5 million American households turn to according to The Economist , despite the less than unfavorable terms which I will get into a little later.

            Today’s post is all about three of the most important financial numbers that we all should know about ourselves but most people don’t. Knowing these numbers can either make our lives easier or harder depending on what they are. What are these numbers you ask? Your credit score , your debt-to-income ratio , and your net worth . If you don't already know these numbers, now’s the time to learn. It may help save you time and money in the long run.  

          Side-hustles are all the rage right now. Selling products online. Affiliate marketing. Driving for Uber and/or Lyft. Writing a book or monetizing your blog. There are tons of options and looking for alternative ways to make extra money is great but let’s face it, not everyone has the time to do so. So how can you increase your available cash without an additional source of income? Simple, you lower your monthly expenses.

          I cut the cord in 2017. This was a big decision for me. As someone who lives alone I use the television as background noise. I’m also that person that needs it to fall asleep at night. So deciding to get rid of cable was an action met with hesitation. However, the cost - roughly $134 at the time (which included the internet) and constantly rising every year made me decide that in order to save money this was something I would need to do. But I didn’t want to make the cut until I knew I had streaming services in place that still met my needs.

         I just want to start-off by saying your worth is not determined by the tag on your shirt, the label on your shoes, or the emblem on your car. You are worth more than the price of your outfit. You have more to offer than being a walking billboard/ad, especially, if you’re not being paid for it. Too often I see people fall into this materialistic mentality. Materialism is just as dangerous and detrimental to your wallet and your finances as lifestyle creep (If you don’t know what that is, check out my post on Lifestyle Creep ). But unlike lifestyle creep, which can inadvertently happen due to lack of planning for increased disposable income, materialism can be harder to overcome because people tend to tie it directly to their self-worth.

          Did you buy a new car after getting a higher paying job? Booked a luxury vacation when you received a promotion? Are you currently making more money than ever before but it still feels like your living paycheck to paycheck? Unable to increase your savings or decrease your debt? If this sounds like you, you may be a victim of lifestyle creep.