She Strengthens

Taking Control of Your Finances: A Personal Journey

When I graduated from law school, I was buried under a staggering $50,000 CAD ($39,068 USD) in student debt. With no clear plan in place, I simply set an arbitrary spending limit and hoped for the best. Not surprisingly, I made little progress in paying off my loans. However, over the past two years, I’ve developed a system that has allowed me to pay off 80% of my debt while still enjoying life’s pleasures.

The Power of Budgeting

The first step in my journey was creating a budget. I sought help from my girlfriend, who had recently paid off her own student loans. I listed out all my expenses, categorizing them into fixed and variable costs. While my initial budget was far from perfect, tracking my spending over the next few months helped me refine it. Today, I still use the same basic template, adjusting it as needed to accommodate changes in my life.

The Importance of Flexibility

One crucial lesson I’ve learned is the need to be flexible with my budget. Life is unpredictable, and trying to fit into a rigid budget can be counterproductive. Instead, I regularly review my budget to ensure it aligns with my current circumstances. This approach has made sticking to my budget much easier and has given me a sense of accomplishment as I watch my debt dwindle.

Separating My Money

To avoid the temptation of overspending, I divide my money into multiple savings accounts. This simple trick helps me resist the urge to splurge, ensuring that I only spend what I’ve allocated for the month. By keeping my chequing account balance artificially low, I’m less likely to make impulsive purchases.

Simplifying My Finances

As someone who struggles with anxiety, I’ve found that simplicity is key to managing my finances. I’ve streamlined my financial tools to just a few essential accounts:

• Tangerine Money-Back Mastercard for daily banking
• EQ Bank Savings Account for emergency funds and long-term savings
• ScotiaGold Passport Visa for travel and car rentals
• RBC Visa Classic Low Rate Visa (rarely used)

By automating my bills and transferring money to my savings accounts, I’ve minimized the risk of overspending. I’ve also avoided credit card reward programs, which I believe can encourage unnecessary debt.

The Result

My system may not be flashy, but it’s effective. By keeping things simple and being mindful of my spending, I’ve made significant progress in paying off my debt. I’ve learned that taking control of your finances requires discipline, flexibility, and a willingness to adapt. With the right mindset and tools, you can achieve financial freedom and focus on what truly matters in life.