She Strengthens

Taking Control of My Finances: A Personal Journey

A Wake-Up Call

I’ve always considered myself to be financially competent. I can create a budget, pay my bills on time, and save for short- and long-term goals. However, in 2018, I received a rude awakening. Despite my substantial raises, I’d fallen victim to “lifestyle creep” and was living just above my means. I found myself with no emergency savings to cover a $2,000 car repair bill and a staggering $5,500 credit card debt that had been lingering for at least three years, despite making regular payments.

A New Approach

In 2019, I decided to take a closer look at my habits and make some changes to pay off my debt and build my savings. My goals seemed achievable, but I knew it would require discipline and dedication. To accomplish this, I:

Developed a Daily Habit of Learning

I started reading about personal finance for a few minutes each day. I began with “Atomic Habits” by James Clear, which taught me how to develop good habits and break bad ones. I then moved on to “Broke Millennial” by Erin Lowry, which provided valuable insights on prioritizing debt and improving financial health. I also discovered other resources, including blogs, Instagram accounts, books, and newsletters that made it easy to access financial information daily.

Established a Weekly Ritual

I set a specific time to check my bank accounts and credit card balances every Monday morning. This ritual helped me track my progress and stay motivated. After checking my accounts, I draw a dollar sign on my kitchen calendar as a habit tracker.

Tracked My Expenses

I started tracking my expenses immediately after making a purchase. Physically typing in the amount I spent helped me stay on track. I use an app called Spending, which is simple and not linked to my bank account.

Calculated My Net Worth

I discovered the importance of calculating my net worth, which is the sum of my assets minus my liabilities. This helped me keep my situation in perspective while tackling consumer debt. I now calculate my net worth at the end of every month to track my progress.

Shared My Financial Goals

I opened up about my financial goals to my dad, who became a great source of support and encouragement. We made it a regular part of our lunches to discuss my progress and what I was learning from my resources. Having someone to hold me accountable helped me stay on track.

By implementing these changes, I was able to pay off my debt and build my savings over the course of a year. It wasn’t easy, but it was worth it.