10 Money Lessons I Wish I Learned Earlier
Because we aren’t taught financial literacy at school or home: most of us grow up and experience financial struggles to learn important money lessons. “They” say experience is the best teacher, but ehhh I don’t know. I don’t have to touch the stove to know it’s hot; I’m okay with listening to you tell me: “don’t touch the stove because it’s hot.”
After blowing my $7,000 refund check, spending every dime I worked hard for with nothing to show for it, facing eviction, and making too many financial mistakes to count, here are 10 money lessons I wish I learned earlier.
Track your money
Despite how much money you earn, you will not keep what you don’t track. I used to love seeing thousands of dollars sitting in my checking account, and slowly but surely, money got low, and I found myself asking the most common question…”where did my money go?”. Start tracking your money with The Responsible Homegirl Planner.
Read money books
So much game about managing and growing your finances are in books, but I was too busy scrolling on social media, or distracted by something else that I barely read books. I didn’t start reading until my back was against the wall, and I had to figure out how I was going to dig myself out of the financial hole I buried myself in.
Only swipe your credit card for the cash you have in your bank account
Many of us are not as disciplined as we think, and we’re overconfident in our ability to do the right thing. Credit card debt comes from a lack of discipline, and before you know it... one emergency or one unnecessary purchase has rolled into thousands of dollars of high-interest debt. I’m speaking from experience, sis.
Pay yourself first
If I prioritized saving money instead of lying to myself saying: “I would save later”, I would’ve never been facing eviction. Prioritizing your savings ensures that your savings account is constantly growing and you have money to access in your time of need (or want). Get in the habit of saving before you pay bills, and always save with purpose!
Stop worrying about money
Worrying about money got me nowhere but closer to God lol. Shift your perspective and realize who's your source. Don’t worry about anything, instead pray about everything. Philippians 4:6 NLT
Keep budgeting simple
Anything simple is sustainable. In 2019 as I was facing eviction, I took out a blank sheet of paper and wrote down my income vs. my expenses, started canceling subscriptions I didn’t need, and began budgeting my money. I use this same strategy today, and it works. Nothing fancy and nothing hard, it’s simple and sustainable!
Have separate accounts
Separate accounts keep your money organized and pair so well with a written budget. I believe we should all have 4 key accounts (2 checking, 1 traditional savings, and 1 high-yield savings).
Checking Account #1- all income comes here and you want ALL bills to get paid from this account.
Checking Account #2- money will get transferred from Checking Account #1 to this account, and this is where you’ll live your best life (eat, drink, travel, shop, etc.)
Traditional Savings Account- short-term savings goals go here
High-Yield Savings Account (HYSA)- Emergency fund lives here and long-term savings goals go here
8. Invest a portion of each of your refund checks
If only I had invested a portion of my refund checks from college, I would be UP! I’ll probably never get another refund check, but it’s never too late to start investing. My primary way of investing now is through my business, The Responsible Homegirl, and through my Roth IRA (Individual Retirement Account)
9. You don’t need a new outfit for every function
I grew up with a strong appreciation for fashion and external appearance. Nothing is wrong with wanting to look nice when you step outside, but it’s extremely detrimental to do it at the expense of your financial wellness. I used to spend unnecessary money just to feed my ego of having on a new outfit and gaining the compliments of others. If you can relate, challenge yourself to do something different. Your value isn't in anything external. It’s not worth it, plus when you really have style, you can put a fit together rather its new or not.
10. Work on your money mindset
Last but not least, and this one is HUGE. Your internal mastery is a reflection of your outward success. Lately, I’ve been working on my money mindset and asking myself hard questions about why I believe certain things about money. I want to encourage you to read “You Are A Bada** At Making Money”. I listened to the audio in 2020, and reading it 4 years later from a different perspective has been blowing my mind. Your money mindset MATTERS!
What are some money lessons you wish you learned earlier? Drop at least one in the comment section! I can’t wait to hear from you!
