My journey to financial wellness began in my early 40s, after a decade of working in a large organization. Despite consistent promotions and salary increases, the extra income seemed to vanish into thin air. Each year, my debts grew despite the raises, a puzzling situation known as lifestyle creep.
The epiphany hit me after a visit to a bankruptcy attorney. It dawned on me—I'd been approaching expenses all wrong. Rather than questioning if I could afford something, I only focused on how I could finance it, typically through borrowing. I realized I was skilled at paying bills but had never crafted a plan for the money remaining after expenses. I hadn't contemplated the future trajectory of my finances—3, 5, 10 years ahead and beyond. The missing piece wasn't money; it was the knowledge to use my money for wealth creation. And so, the transformative journey commenced.
I dissected every expense, gathering bills and noting creditors, amounts due, and interest rates—a daunting yet essential task. I redefined my understanding of expenses, including basics like food, gas, and clothing.
Understanding the disparity between income and outflow proved pivotal in charting a future course.
Once the inflow and outflow were crystal clear, I directed the surplus toward debt reduction. As each debt dissolved, its payment was applied to the next on the list. Life's demands persisted, but rather than contemplating how to afford things, we pondered if we could afford them and, crucially, the impact on our debt elimination plan. Cash became our tool for needs and wants, preventing an escalation of debt.
As our debt diminished, so did our financial worries. Our discussions shifted from "How much is left?" to deliberations on debt clearance timelines or our next financial move—building an emergency fund, home improvements, bolstering our retirement savings, and vacations.
Most significantly, I embraced the idea that the unknown is natural, yet knowledge is abundant for improving personal finances. The pivotal step is taking that initial plunge.
Reflecting on this transformative journey over the past decade, I've come to realize the profound impact of understanding one's financial landscape. It's become my mission to share this insight with others, ensuring that anyone with a job doesn't merely work to make ends meet. I've learned firsthand the transformative potential of knowledge in shaping a brighter financial future. It's this understanding that fuels my dedication to empower individuals, providing them with the tools and know-how to navigate their financial paths toward financial wellness.
Pace yourself, but Start Now. Your future self will thank you. 🧡
