Money Talks: What’s your financial language?

Hello everyone! I’m so excited to officially launch our finance series: Money Talks on the blog! The name of this series is inspired by Johnny. In college, he worked with the Entrepreneurship in Residence Program at the University of Texas where they launched Money Talks! Invite venture capitalists to speak on campus. When we brainstormed some names for the series and I said “Money Talks” – Johnny was absolutely beaming at the thought of how funny it was that things had come full circle.

For those of you who may be new, I grew up in a household where we talked about money openly. I learned how to balance a checkbook, live below my means, and save money for a rainy day. Our families came here with nothing, and this is where we are now. Well, my parents got me a credit card when I was 16 so I could start learning what “credit” was as quickly as possible. I’m very comfortable talking about money because I believe knowledge is power.

Don’t let fear hold you back

Johnny and I feel like one of the biggest problems people have when it comes to their money is that they don’t want to look, whether it’s because they’re afraid or they’re in denial. It can’t be a problem if you don’t know about it, right? mistake.

There is a stigma around money, especially in relation to women, and I think that is completely wrong. Now, I’m not asking you to ask all of your friends exactly how much money they make or how much their house costs. If I can be honest, it’s rude and vulgar. However, I think it should be 100 percent acceptable to discuss money strategies, spending, savings, investing, and how to make sure we’re all financially fit. This should not be taboo or “boring” but should be appreciated. Also please don’t make it a competition. You may need a responsible friend for this, so choose wisely.

Before we get started, I want to mention that I think this is very important for women to know. Men need to know all this too. But I think as women, it’s very important that we don’t brush it off and say, “My husband handles it,” or say, “I’m not good with numbers.” I’m not saying you have to be in control, but you should know exactly what’s happening with the money in your house. If something happens tomorrow, you should be able to know exactly your financial situation.

Don’t let fear control your life. Don’t let debt hold you back from experiencing the wealth and financial freedom you deserve and can have. Johnny and I are not perfect. We are not financial advisors. This is what we did to save money, buy a house, and live debt-free (except for our house and something else I’ll share later in the series).

What is the language of your money?

Johnny and I joke about personal finance being much more personal than finance. It is the plan for how to dispose of money. This is not investment advice. But you may find an arrow in the right direction.

I promise we’ll cover very tactical financial tips, but like all good strategies, it’s important to take a small step back to make sure you’re seeing the forest for the trees. We have so much going on in our lives, we rarely take the time to ask ourselves the essential questions that set us up for success.

Let’s start by answering some questions that will take a minute.

What is the language of your money?

Write down your results. Take a screenshot and save it to your desktop or phone. Keep it. Understand that this is why you want to deposit money into your bank account. I know very few people who really want to get rich, just to have money in the bank. The vast majority of us want what money can buy. It is important to understand yourself because this will make it easier to reach your goals.

I am a visual, family-driven person. Johnny is a practical person who is motivated by the freedom to achieve his dreams. There is no wrong answer, this is simply to give you some clarity on what you need or want the money for.

So what now?

Now that you know what your money language is, let’s answer some questions. What is financial freedom to you? What debts do you want to pay off? How much does each one cost? Do you have a plan to pay their wages? Why do you save? What’s on your bucket list? What does your best life look like?

Think deeply about this and see yourself truly living it. Write it down. It’s easy to get fooled into what the world thinks your best life should look like (buying a lot of expensive things, taking luxury vacations, having elaborate parties, etc.), but that’s not the answer that usually satisfies people.

How much would you need to earn annually to live your best life? It is usually lower than people think. What are your goals for this year? Do you have any upcoming life events (wedding, buying a new car, buying a house, etc.)? How much will this cost or better yet, how much can you afford? Many people will overestimate what they can accomplish in one year, but underestimate what they can do in 10 years. Set a realistic goal to set yourself up for success. When you crush it, you’ll feel motivated to keep going.

However, it all starts with saving money, so let’s start with how to do it.

How to save money

Let’s take a look at what you have, including your income and assets. We’ll also take a look at what debt you may have, whether it’s credit card debt or student loans. Maybe you have a house you want to pay off. Write all this down so we’re on the same page. Now let’s see what we can do to pay off your debts or save money if you are debt free.

What numbers are you working with?

If you want to save, start by spending less than you earn. Remember the language of your money and stay focused on your long-term goals. Let’s do this short exercise:

He goes To your bank account and print the last three months’ data from your debit and/or credit card. Your average total spending over the past three months. There are some applications like Mint.com It can help you do that too. Please don’t be embarrassed. The main goal of this exercise is to give you an honest look at how much you’re actually spending. You need to see these numbers in front of you so you can really understand what’s going on and take control of your money.

takes A piece of paper and draw a line down the middle. On the left side write your total monthly earnings. On the right side, write your average monthly expenses. Subtract the total on the right side from the total on the left side. If you’re spending more than you’re earning, let’s start with a budget so you can make a plan to make the left side bigger than the right side of your paper three months from now. The important thing is that the left side be larger than the right side. You then put the money into a savings account and do it automatically each month. We’ll talk about what to do with the money you want to save in the coming weeks.

How to live below your means

Maybe this left side is not where it should be. Let’s discuss some ways in which you can live below your means. Johnny and I are big advocates of this. We believe that your true wealth lies in what you choose no To buy. We can buy a bigger, nicer house. We can buy new luxury cars. I can buy many things. We can afford to eat out more often. Do we do these things? no.

Everyone has a vice or something they like to spend money on. This is good! Saving does not mean giving up all the good things. It means sacrificing for what you want. This means thinking about the bigger picture and not spending on something now so you can spend it on something you really want later.

Don’t get distracted when you see friends buying big luxury homes, driving luxury cars, and taking lavish vacations. Keeping up with the Joneses is what will keep you poor. By the way, we believe that bankruptcy is a state, while poverty is a mindset. Let that sink in for a second. Don’t use your credit card to buy things you can’t afford. You will never be able to accumulate wealth and have the financial freedom to do whatever you want if you are in debt. Here are three ways to live below your means.

1. Eat and cook more

This is the most simple but can be the most difficult. To this day, what amazes me is that one or two takeout orders for both of us can cost us the same amount as our grocery budget for an entire week. Make a meal plan and meal prep if you have to. I know that in the past, one of the ways I held myself accountable was that I felt bad about wasting food I had already prepared, so I didn’t eat out. On Sundays, I would go grocery shopping and cook lunches and dinners throughout the week to avoid temptation.

Johnny and I had a very healthy relationship with cooking and this in turn gave us a healthy relationship with our cash flow and each other. What this actually means for us is that when we go out, we can splurge a little on our favorite sushi or buy a new piece of home decor without getting noticed. If you have to eat out, the first thing you can save on your bill is to do so Drink water. It is free in this country. It’s weird how much drinks can cost, even just soda. If you’re having a quick meal with a significant other or friend, order two appetizers and split an entree.

I have a humble story to share. My older brother is a doctor. Every day he brings his lunch to work. He carries it in a cute lunch bag my mom got him. When he sits down to eat, he is usually making charts for patients or following up with other nurses. He usually asks his staff: “Dr. Kong, why don’t you buy your own lunch? You make enough!” He usually smiles calmly and answers: “If I buy lunch every day, how can I save enough to treat you all after a crazy week or buy Christmas presents?” Yours?”

2. Stop impulse shopping sales

Oh, I understand the temptation. I post about it a lot, but that doesn’t mean you have to buy something. Most important to me is that you are financially responsible. Start building the strength in your mental muscles to say no to the things you want now. Delayed gratification is so much sweeter. I promise you. What’s more, in this series, we’ll take an in-depth look at how investing in quality clothing will save you money in the long run. This is where making smart decisions with money plays a key role.

That’s the thing about sales: yes, in theory, you’re saving money but you’re still spending it. Let me explain: The dress you want is $100 and on sale for 20% off. Yes, you save $20 but you still spend $80. If it’s not absolutely necessary right now and you need to save to pay off debt or want to make a large purchase in the future, close your browser and walk away. Before we closed on our house, I was in a major spending freeze. Every time I wanted something, I reminded myself that I wanted this house for more than just a new pair of shoes or another jacket.

3. Cut off those subscriptions

We all have these. Cable TV, apps on our phones, and automatically delivered snacks. The average American spends $237 a month on subscription services. Many of us sign up for free trials and then forget to cancel them. On your phone, go to the App Store and tap Your Account & Subscriptions. Delete the ones you no longer really need. Same for real life. Do you really need a delivery of toilet paper every month or organic potato chips? For full disclosure, the subscriptions we have are: Netflix, Amazon Prime, Wall Street Journal, Apple Music, and Audible. I have a few others, but they are business related and the average person doesn’t need them.

I know this is a bit to take in, but I’m so excited to be on this journey with you together! If you have any questions, feel free to leave them in the comment box below and I’ll get back to you! You can also email me at he***@co**********.com. Until then, focus on your homework and stay tuned for the next Money Talks post!