Growing up, money wasn’t really discussed. It just kinda was a thing that people had to work hard to get and then turned around and used. So, when I got to college and had an income with bills to pay, I had to figure out what on earth I was supposed to do. My solution was a bit (a lot) of binge reading about personal finance fueled by Pinterest and Google and, after a few years, I wish I could tell you I have everything 100% figured out. I don’t – sorry if that is what you were hoping for – but, I have come to some conclusions I would love to share.
1. Finance is personal
Yeah, yeah, I know it is called ‘personal finance’ for a reason but just hear me out. Finance is personal because one method doesn’t work for everyone. My best friend tracks her money on an app and keeps everything in one savings and one checking account. That doesn’t work for me. I write out, on paper, every single transaction that clears my account and track that way. I also have several accounts because I can’t just tell myself ‘this $50 in my account is for dog shots in 3 months,’ I have to actually see it separately. I have played around with and tried several budgeting methods and while I still don’t have one that works perfectly for me, I am closer than I have been at being there.
2. You need a budget
I do realize this could sound contradictory to number 1. Yes, how you manage your finances is personal but, take it from someone who has run their life on and off a budget – you need a budget. Unless you are a unicorn and able to know at all times without ever checking your bank account what is in it and where that money is going, you need to pay attention to that. Now, I am not saying obsessively stick to a budget with no grace for yourself. What I am saying is you need to track your spending, look at where you money is going, and then decide where you want it to go.
3. Money is an inanimate tool
In deciding where you want your money to go, you begin to take control of your finances. Money is useful, it allows us to buy food and clothes and shelter and all the things we need/want. But, money is always being used by someone and if you aren’t in control of it, then the marketing department at your favorite store you shop at 12 times a week is. When I started learning about money mindsets (Google if you are curious), I discovered a lot but one thing is that I was scared to control my money because I was afraid controlling it would turn me into an evil, money loving person. That is not even close to what happened. Telling myself I was going to control where I spent money and why I spent my money made it so a) I was no longer getting a paycheck and then wondering where it went and b) I began to realize I could do more that I thought with the money I had because I was determining how it worked for me.
4. My Money Mindset
This is probably the single most important thing I have learned while discovering how to manage my finances – what my money mindset was and how to change it. This was not easy and is still a work in progress but forced me to take a long hard look at myself and how I viewed money. Spoiler alert: it wasn’t beneficial for me. For compounded reasons, I viewed money as this thing that was hard to get, harder to keep, and was in short supply. After a LOT of work, I have begun to reshape my view that money is flowing abundantly, it wants to be used by people, and is easy to keep but even easier to use properly. And, when I began to view money like that, especially as being abundant, I began to notice it was no longer a chore to earn and use nor was it elusive.
Now, I am no personal finance expert, nor am I certified in any sort of financial management. I am simply someone who has gone from literally not knowing where any of my money went for 4 months to paying off my entire car loan in less than a month and my student loans will be paid off fully within a year and a month after graduating – June should be my last payment! I don’t tell you this to brag and I know everyone has different situations, I tell you this so you see I am not just telling you junk statements that I have never experienced. And, after looking at how my life and my look on life has changed after taking control of my finances, I think everyone should give it a try.
How do you handle money? Do you budget and if so, how do you choose to do so?
I will chat with y’all again next week!
One Comment
Christian
Hey Lyss!
I had a similar experience about money growing up. Nobody talked about money except maybe how much they were making. But managing that money (or any resource) is just as important right? I remember taking a class about money management in high school and learning about budgeting and keeping track of your money! The more I think about money, the more I feel like that evil, money loving person. It feels like money is everything, even though I know it isn’t.
This is a little silly of me to admit, but I’m pretty scared about taking loans out, especially for College! I just know that I’ll end up with a degree but I still won’t be able to get a job with it to pay off those debts and that is scary! It happens! I’m happy for those who have succeeded with them though! ☺ I know that college isn’t for everyone, and that is ok…right? I feel so pressured to have to go to college.