Today, i am going to discuss about A Minimalist Approach to Personal Finance. For most of my life, I wasn’t very good with money. I made it and I spent it the money came in and out. Since nearly eight out of ten Americans live paycheck to paycheck. I’m guessing that’s something that you can relate to as well after four years of college. I left with a degree in mass communications and 97 thousand dollars in student loan debt. Then I bought a brand new car. I told you I wasn’t very good with money. There was something holding me back from even looking at my managing personal finances It had become a joke.
A Minimalist Approach to Personal Finance
I owe him some money What kind of money. I had dug myself into a hole so deep it didn’t even seem possible. That I’d ever get out the crazy part all that debt wasn’t stopping me from spending after, I got the new car. I added a new TV Computer and even a leather jacket to my running tab that leather jacket was pretty cool though soon after college. though I came to the realization that I needed to make a change. I couldn’t just pretend like I wasn’t in massive trouble. It was one of the most challenging things that I’ve ever done in my entire life. But over the course of 4 years. I was able to pay off every single student loan even that car payment and that’s what I want to discuss about today. Money our problems with it and how A Minimalist Approach to Personal Finance has helped me. There’s a basic formula to win at personal finance and It’s this. Spend less money than you make In practice though. It’s not that easy money seems to completely slip through our fingers no matter.
How much money, we make our bank account seems to have a Completely different agenda. One of the reasons that we’re bad with money is because money is taboo. We can’t even discuss about it with coworkers with family members without people feeling judged or downright Offended. We can only improve, if we start to have honest conversations about money. We need to remove our egos and actually try to learn.
One of the best ways that I’ve found. To learn about personal finance is through books and I’ll give three recommendations total money makeover. I will teach to be rich and Tony Robbins Unshakable, all three of these books lay out great advice trusted advice that has worked and I think that you’ll find a lot of value from them. Don’t fall into the trap of lifestyle creep. We get a pay raise or we start to make a little bit more money. We land a really big project. The first thing that we want to do is Upgrade our apartment buy a better car Increase our lifestyle. So then that way we’re in some way rewarding this win. If we were instead to be more mindful about our spending. If we were to keep our lifestyle in check and not Inflate it as our income rises. 5, 10 years down the road. We’re going to be able to live a lot more comfortably. We’re gonna have so much more security than if we continue to increase our Lifestyle every year, let’s be honest.
We buy a ton of shit and we convince ourselves in a lot of sneaky ways. Why we deserve it. I mean I like shopping Is there anything so wrong with that not all advertising is bad. A lot of it is Driven to make us feel as if we deserve the indulgence. You’ve worked so hard. The truth of the matter is that, what you deserve is to be debt-free? If we’re not Curating and mindful of our news feeds and our social media feeds it can be Very tempting to want to keep up and have the things that everybody else have otherwise, we’ll have the fear of missing out. Here’s the thing rich people are rich because they make smart decisions.
Myth with their money, they don’t go out and lease a brand new BMW. They don’t rent an apartment, that they can’t afford and the last type of pressure that we face is pressure from ourselves. There’s this thing called the myth of ‘I don’t have’ and it’s something that we tell ourselves. To convince us that we need to go out and buy that thing. So as a filmmaker, you might say I really want to make that film but I don’t have this lens or I don’t have this camera. So I can’t do it or I can’t go out for that run or that jog I can’t start my new workout routine because I don’t have that pair of sneakers but really the only thing that’s doing is procrastinating us from getting started with our goals and our dreams. It’s convincing us that buying that extra thing is gonna solve everything which it won’t you need to make sacrifices when I graduated college. Within 3 months I decided to move home with my parents and I lived in my parents basement Literally in the basement for two years.
I didn’t date much, didn’t spend much, I didn’t go out much, because I knew that I had to make some sacrifices. To get to a point, when I could start to take risks. You have to be completely clear with, why you’re doing this in the first place? Why do you want to be debt-free? Why do you want to have? Financial freedom when we truly understand, why we don’t want to be living paycheck to paycheck? Why we would want to be debt-free ?Everything else comes a little bit easier, when we think about having the security and safety being able to take care of our family and our friends. They run into trouble, It becomes more obvious. Why this is so important you’re able then to take more risks to challenge yourself. Put your push yourself outside of your comfort zone. In ways that you otherwise wouldn’t be able to I know for myself if I wasn’t debt-free, I Wouldn’t be where I am today.
I didn’t take in that first step and realize that I had a problem. I wouldn’t have had that domino effect that led me to where I am to be able to take pretty ambitious and risky decisions of finance to move across the country to Leave my business. I start a complete new one these aren’t easy decisions and when you have debt. It’s gonna be that much more difficult and that less likely that you’re gonna succeed. The strategy couldn’t be more simple spend less money than you make but as you know. We face a lot of pressure to do the exact opposite. You can out maneuver these forces, if you can build a healthy relationship with money, and create positive habits that stick. You will be able to become financially free.
What strategies tips tools and books have helped you on your own Personal finance journey. What things have helped you to chip away and even get out of debt? I’d love to hear about your success stories as well as a part of that conversation opening up the dialogue about money. I think we should be encouraging each other and really rewarding each other for making positive steps in our lives. Try not to feel threatened or discouraged, if other people have a great success story see it, as Potential in yourself. If somebody is able to get out of debt thats means that you probably can too.