The Ridiculousness of It All...

I often times wonder how far ahead in my financial life I would be had I been able to recognize the need to be financially savvy right after obtaining my undergraduate degree. I was set- only $13,000 in debt to pay back in student loans (the remainder of my $80,000 undergraduate education was taken care of by multiple scholarships which I had applied for before and during my college years). My mother had bought me a car for my senior year (my Ford Contour, I loved it!)so I didn't have car notes to pay or car insurance because she took care of all of this for me as a graduation present. I, like many college students, graduated with about $3,000 in credit card debt which I paid off immediately. However, I did not make paying back my student loans from my undergrad alma mater a priority. So, I continued to defer my loan payments while I lived like I had financial freedom. I built up no savings and literally lived paycheck to paycheck when I didn't have it. Being wet behind the ears, I even went got financed for a $13,000 brand new Ford Focus. At this point (2006), still no savings but I had the bonus of having my daughter (an added responsibility). I made sure we lived comfortably and had plenty of food and clothing. I had new clothes, new car, even had the nerve to apply for and get a credit card (for whatever reason!). And still- no savings, no retirement fund, no assets, negative net worth, and no clue! I know many of you may have experienced this in your life and don't quite know what to do. I have good news for you- it can get better if you're willing to fully commit to a lifestyle change. Greener Pastures... So, in 2008, I met with David Pound, a certified Financial Planner for Nobles and Pound Financial Planning here in Fayetteville, North Carolina. As a good financial planner should, he not only looked at my finances and my dreams for my financial future but he made me look at how my life choices would either (1) keep me in the poor house or (2) put me on the road to prosperity and building weatlh. Your day to day decisions can only put you on one of these two roads, there is no in-between. In other words, there is no Financial Purgatory in the sky! I tweeted this morning that a $1,500 Gucci purse, $600/month car note, $1,200 rent, $150,000 student loan debt, and a $35,000 annual salary= NOT SEXY! If you have debt but are trying to look like a millionaire, I've got news for you. (By the way, most millionaires are tight wads and wouldn't dare spend over $400 for a decent suit.) Your debts, if you are not eating them like a ferocious lion, and building an emergency savings and pulling for your retirement, you are being sucked dry! Get out of the dark and walk into the Light of Financial Freedom. Become debt-free! Here are some simple steps you can take now: (1) Stop using credit NOW! (2) Start building an emergency savings fun with at least $1,000 in it. The goal is to eventually have 6-12 months of savings in this fund. (3) Contact your creditor and arrange viable (realistic) payment arrangements with them all. (4) Seek the assistance of a Certified Financial Planner who can help you find ways to curb your debt and spending habits. (5) Sell, sell, sell everything that you can do without and use this money to build your emergency fund and begin to pay off debts. (6) Make and stick with a budget. (7) Drastically change your expenses. Buy pre-owned from everything you can to include cars, car tires, car parts, clothes, appliances, furniture, etc. (8) Write a list of your "motivators" so that you can stay focused on your goals. In the meantime, in-between time: Send me an e-mail at restoreourintegrity@gmail.com if you would like to become a part of "Sisters Living Financially Savvy," a support group for African-American women who want to get out of debt, live within their means, and build wealth. This group is free and open to the local Fayetteville/Cumberland County community. Resources to get your hands on: The Wealth Choice by Dr. Dennis Kimbro The Millionaire Next Door by Dr. Thomas Stanley Zero Debt for College Grads by Lynette Stanley The Total Money Makeover Workbook by Dave Ramsey God Bless, Yabo, Ashe!