Did I Mention I Was Broke?

As a financial planner I am now financially responsible but this wasn’t always the case.  When I give advice it is from my book smarts because I do have a BA and Financial Planning degree but it’s also comes from live and learn street smarts. I have been well off, and then broke, then upper-middle class, and then so broke that I had to move.

In my late teens I went from my parent’s house to living on my own. I went from having a privileged lifestyle to working two jobs. I was tired, hungry, and still didn’t have enough money to make ends meet, but I was too proud to ask my parents for financial help. I felt that it was my decision to move out (my parents didn’t agree) and therefore I didn’t have the right to ask them for financial help. When I say that I was hungry…let me tell you that I was eating rice for my daily meals.

Over the years my life and financial situation moved up and down with the market due to the fact that I work in Finance. When I market is good I was making great money and when the market has been bad so has my life. You know the old saying “Do as I say and not as I do” Well that definitely applies in this situation.  It’s like your hairdresser, her hair is always messy but she styles your hair like a million bucks. The same thing goes for your banker, she advises you on your personal finances but her situation may be one of the worst ever.

I have definitely learned my lesson and I will never make the same mistakes again. When I look back on the situation I know that my mistakes were from being stupid, and inexperienced. We always hear about the biographies of rich people and about how rich they are.  But, we never hear about their troubles, or about the struggles. I want to know how they became rich and what did they do to become wealthy?

It’s not always knowing what to do but also knowing what not to do.  Anyways, that’s how I see it.  I need to know what not to do because the doing it right part I can learn on my own…and boy have I ever learned.

I suggest that we all read or re-read the book The Wealthy Barber, and study the biography of Sean Combs (Diddy) and Sean Carter (Jay Z).  These are people who made something from nothing; they put in the work hours to make their money.

Kristina’s Tips to Becoming and Staying Financial Stable:

1. Don’t spend it just because you have it
2. Add savings into your budget it shouldn’t be the first thing cut out in a crisis. Cut living expenses before you cut savings or maybe just lower the percentage
3. Ask yourself…do I really need it or do I just want it?
4. Don’t spend money as a pastime because you are bored and have nothing else to do.
5. Invest for the long term. Don’t get out when things get rough.
6. Keep a credit card with a limit that you can pay off each month with your income
7. If you have debt, make a payment plan and stick to it. Have a goal to pay it off by a certain date. Don’t just make minimum payments
8. Do not let your finances consume you. Have other thoughts, goals, priorities don’t be obsessed with money
9. You won’t be wealthy by Wednesday. It’s a process. We never hear about the process but becoming wealthy happens over time
10. If you are a spend-a-holic then stay home to avoid temptation

People become broke for one of two reasons…they spend more than they make and they build up credit that they cannot afford to pay off. Don’t spend it if you don’t have it.

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(Photo by s58y)