Money Drunk, Money Sober: 90 Days to Financial Freedom by Julia Cameron & Mark Bryan.
I Was Broke. Now I’m Not – Joseph Sangl
Ashaunda Davis – Financial Coach
Mom & Grandma
How I Adopt / Adapt / Apply It
I’ll just put this out there, I “struggle” when it comes to saving money. Saving as in, not spending it; leaving it to sit somewhere and grow. I don’t tell myself ‘no’ very easily so consequently, if I want it and I have the money in front of me, that item is bought. Fortunately, I don’t have expensive tastes.
*ahem* Yeah, so, my spending habits had me routinely dodging bill collectors all through my early adult life; I was the epitome of the saying, ‘robbing Peter to pay Paul’ as I was certainly taking from one bill to pay for another. Forever scrambling to have my ends be able to at least see each other from opposite sides of the street. I’d worry about them meeting when I won the lottery or married that rich husband.
When neither of those two things happened, I figured I’d better get serious about learning how to make this money thing work. Mind you, is was February (COLD) and my electricity had just been shut off. Looking my daughter in the face and explaining to her that we’d have to bundle up for a few days, eat dinner out, and basically live by candle light at night, could be considered my rock bottom as far as my money situation goes.
I started off by asking my mom for advice. She had retired WELL and was (is) living a life of world travel, paying cash for what she wants / needs, and not once having to worry about a roof over her head or food to eat. Next, I picked up a couple of books. The first one ticked me off something serious, but the next one, Money Drunk Money Sober, was like a light house beacon leading my ship to shore.
I just recently discovered I Was Broke. Now I’m Not via a friend of mine. I had fallen off the money recovery wagon February of this year (life, don’t’cha know) and was gathering my old resources. During a conversation, she suggested the site as a supplement to my list. I’m glad she did.
And finally, I met Ashaunda Davis at a networking event. She offered up much sage advice, as well as got me started on an investment strategy and savings path that are sure to turn my long term financial goals into dollars in the bank.
Here are the strategies and how I use them:
The Law of Thirds (mom, grandma) – 1/3 of your income goes to housing (rent / mortgage); 1/3 goes to NEEDS; the last third goes to savings. Period. I broke my once weekly paycheck into 3rds and use those amounts to dictate how much goes to which bill.
The Prosperity Plan (Money Drunk Money Sober) / Budget (I Was Broke. Now I’m Not) – taking the principles of both those items, I came up with my list of specific expenses. Funny enough, they break down into three categories –
Life = Have to Spend regularly (on time)
Debt = Need to Spend consistently
Upcoming = Going to Have to Spend soon
Split bills, as possible, by paycheck (Ashaunda Davis) – Do you get paid twice a month? Then take what bills you can and pay half from one paycheck, and the other half out of the next, I get paid weekly, so I broke a few of the bills into four payments making my weekly check go a little farther each week and establishing some consistency when it comes to getting the bills paid each month. Now, it doesn’t always happen that the last payment falls on the due date, but what I notice is that EVERYTHING gets paid in full each month and I don’t have collectors calling me on the phone.
I’ve got my sites set on being out of $3500 worth of debt and will have met one of the two savings goals Ashaunda and I set for my future by or before December 31st. I will also be maintaining my mid 600s credit score – a hard earned number for sure.
Are you struggling financially? Are your ends complete strangers? Try one or more of these tips / resources for a month then come back and tell me how things went.
Do you have some tried and true budget tips you’d like to share? Leave those in the comments as well. I still need all the help I can get ;-).
Sending Love and Light,
The Next Chapter