I took my first flight a few days before my 24th birthday.
I was pumped!
I was leaving Jamaica for the first time to work in a hospital in Brooklyn, NY.
I was one of many registered nurses recruited to work in the USA.
To me, that was huge!
Growing up poor, I saw this as an awesome opportunity to make a better life for myself and my kids.
It was….. but I struggled.
When I got my first paycheck and converted it to Jamaican dollars, I was rich!!
I was excited… and I spent it all.
Sadly… this was my S.O.P for the next few years.
I worked hard and spent hard.
I was offered the opportunity of a lifetime, but I still had a lot of hurdles and obstacles to overcome.
Like limiting beliefs.
Lack of smart goals and a poor attitude towards mentoring.
Neither positive nor teachable.
In the beginning, I was very resistant to instructions and guidance.
And it took a number of years and many mistakes later for me to grow to where I am today.
I had to change for things to change.
What about you?
Are you open and teachable?
Do you surround yourself with positive influences?
Although it’s never too late to start, some of us are very comfortable sitting on the fence.
Or, we resist change even though the truth is staring us in the face.
Things will not change until YOU change.
So…..
How are you doing financially?
Over 70% of US citizens are living paycheck to paycheck, and over 40% would not be able to cover an emergency of $1000. Many don’t believe that they can fix that and some believe that’s just the way it is and it will never change.
Stats like this are depressing but options are available.
That doesn’t have to be you.
Young or old now is the perfect time to start thinking and planning and seizing control of your finances.
The most crucial step in making that happen is figuring out how to manage your cash flow. You’ll need to set goals and think through the steps it will take to reach them.
Although each person’s financial plan may look different, a BUDGET is the best place to start.
Sadly for most people, budgeting sucks.
No one really wants to do it.
It’s difficult to stick with, and it makes you feel like crap when you spend way too much on food!
But, you’re an adult so you need to do it.
Here are a few benefits of having a working budget:
- A budget is working a plan for your money.
- Budgeting means you’re spending on purpose every month. Being intentional.
- A budget gives you freedom. It doesn’t limit your freedom!
- Budgeting will help you achieve the goals you’re working towards: getting out of debt, saving for retirement, keeping your grocery bill in check.
- A budget gives you an action plan and a clear picture of where your money is going.
There’s no better way to manage your cash flow.
There are many different ways to set up your budget and several different styles and types. I use a simple excel spreadsheet but will be moving to an online tool in the near future.
Here are a few types of budgets:
- Reverse Budgeting: Pay yourself first – retirement, savings, and emergency fund. Next are fixed expenses such as mortgage/rent, utilities, car payment, etc. Third, are non-fixed expenses such as groceries and gas. After that comes debt payments then, anything left over can be used for fun stuff like eating out, travel, fancy coffee or whatever else you like to treat yourself with.
- Balanced Money Formula: This formula is also called the 50-30-20 rule. It’s a budget framework outlined in the book All Your Worth: The Ultimate Lifetime Money Plan by Elizabeth Warren. Fifty percent of your take-home pay goes towards fixed expenses and necessities like food, housing, utilities and ideally all this should be kept at 35%. Thirty percent of your take-home can be spent on wants like eating out, treating yourself to a new dress, electronics, etc. Twenty percent goes right into retirement accounts, savings and emergency funds.
- The Envelope System: This method may seem old-fashioned, but it’s great for anyone who is just starting out on their financial journey. This is a cash budget method to see how much you spend.
- Budget Management Tools: There are many such tools available. My recommendation is EVERYDOLLAR. Do your research and select one that fits your needs and style.
Doing a budget is simply telling your money where to go…. month in….month out.
And if you’re not good at budgeting yet, that’s okay! It takes a little time. By your third budget, you’ll be a pro.
Start today!!!
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Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
I help Busy Nurses & Professionals Become Good Stewards of Their Financial Resources, and Show Them How to Practice Wise Financial Discipleship to Create an Amazing Life and Thrive!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
