She Strengthens

Taking Control of Your Finances: A Path to Confidence

We’ve all been there – feeling like a responsible adult one minute, only to be shocked by our dwindling bank account balance the next. But what if you could break free from that financial uncertainty? I’d like to share my journey toward financial literacy and the simple yet effective changes I made to achieve peace of mind.

Laying the Foundation

Growing up, I was taught the importance of managing my finances. I learned how to write checks at 13 and was gifted a copy of “Financial Peace” after college. I started my career in Washington, DC, with a clear approach to money: I direct-deposited part of my paycheck into an “Emergency Fund” and another portion into a rent-only account. The rest went into my day-to-day checking account. These decisions gave me a sense of control and helped me prioritize my spending.

The Problem with My Original Approach

While I made smart financial choices, I gave myself too much freedom with the rest of my paycheck. I’d often spend freely, thinking I was making smart choices, only to be left with less than $100 by the next payday. This led to a cycle of overspending and wondering where my money went.

The Power of Tracking Your Spending

Keeping track of nearly everything I spend has been a game-changer. It’s not always easy, but it’s helped me save an additional $150+ each month by making me more mindful of my spending and forcing me to address my priorities. By focusing on daily financial choices, I’ve been able to make more intentional decisions that align with my goals.

The Importance of Budgeting

A budget is essential to balancing your wants and needs. It helps you prioritize your spending, making it easier to keep track of your expenses. By allocating specific amounts for certain expenses, like going out to eat, I can enjoy those experiences guilt-free, knowing I’ve set aside the money for them.

Creating a Budget That Works for You

My budget takes into account my daily spending, lifestyle, and priorities. I set aside money for specific goals, like travel and gifts, which makes it easier to make healthy financial choices. I use the YNAB (You Need A Budget) app, which has had a significant positive impact on my finances.

The Benefits of Financial Awareness

Knowing where my paycheck goes each month has given me confidence in my financial decisions. I’m able to make intentional choices that align with my priorities, and I’m no longer left wondering where my money went. Whether you’re in a simple or complex financial situation, tracking your spending and creating a budget can help you achieve financial health and peace of mind.