Today’s Money Mentality is 609 Words, a 3 min Read. ENJOY!!
When I first learned about Personal Finance, the most important lesson was learning the importance of automating my savings. At the same time, I saw a video that showed how saving 40% or more of your income was the fastest way to reach Financial Freedom.
Both lessons made me feel like I had found the secrets of the universe because:
I could stop thinking about saving and actually save more
I could reach my goals much faster than I thought possible.
It was glorious. I felt like I had attained the wisdom of Solomon.
I had finally unlocked the secrets of the rich and powerful. I just had to sacrifice a few things (this is what we call foreshadowing). BUT WHO CARES! All I could think about was the long-term goal of Financial Freedom.
I quickly set up multiple direct deposits with my employer, each for a different savings goal.
I Increased my 401(k) investments
I maxed out my Roth IRA
I increased my HSA contributions
I increased the amount I was saving for an Emergency Fund
I opened a new brokerage account to invest in Single Stocks
I created sinking funds for Giving, Christmas, and Travel
I had achieved Personal Finance PERFECTION. Nothing could throw me off.
My sense of serenity and achievement lasted for about a month.
At the end of the second month, my finances felt SUPER TIGHT! I was pulling money out of the various savings accounts to pay my monthly bills. Which was exactly what I was trying to stop. I could not understand why. I thought I had finally found the ultimate solution to all my money problems. So why was I in a worse position?
This went on for a few months. During which, my financial anxiety hit an all-time high. I cut out every single iota of excess in my budget. No eating out, not even a McDonald's fry. Before I bought anything I was doing mental gymnastics to determine if I could afford it or not. The last thing I wanted to hear was someone inviting me to lunch or to do anything. Things got so bad at one point, my brother got on me for never having food in my house. He was like, "BRO, how do you survive?"
After months of suffering and being frustrated, I was ready to give up on the whole process and go back to my old ways.
Life was miserable!
Then I had a conversation with my sister and her advice was simple
SLOW DOWN!
Focus on the Priorities and Say No to everything else.
Life is to be lived not just survived.
I forgot to mention. At the time, I was also paying for Grad School out of pocket.
Needless to say, I was
Too often we choose a path based on someone else's standards and expectations. I had to learn to make my own rules for my own goals. During that time, doing all the cookie-cutter default financial advice such as maxing out retirement savings or having a 3-6 months Emergency Fund was not feasible. I had to adjust for my end goals.
Sometimes the goal should be to save what you can. Life is always in flux there is no static one size fits ALL. We have to adjust as life changes.
However, be mindful to get back on track. As my new motto says
Have Fun but DON'T Eff it up
Thank you for Rocking With ME
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Remember GENEROSITY > greed
God bless Each and Everyone of y’all
✌🏾