Financial Fitness – Simple Tips for a Rich Life

Pumpkin spice won’t get me this season.

Oh, Fall. That time of year when the air feels crisper, the hoodies start to come out, and pumpkin spice returns to coffee shops everywhere. For better or worse.

It’s my favorite time of year for all these reasons….maybe you too. Which is why if we’re not careful, it can also be an expensive time. (Those PSLs add up. And they cost more right now simply because it’s September. Those evil geniuses.)

Some ways that I’m watching my wallet as I get ready for spooky season:

How I’m Saving Money This Summer (Food Edition)

In list form, because I haven’t the patience to make this more fun. And let’s be honest: lists are most fun.

Keep in mind that my vice is food, gang. I don’t do food or grocery delivery, so I’ve at least got that going for me. But this gal loves to eat, and loves to be outside in the summertime. A financially lethal combination.

So instead of blowing all my money on patio meals, here’s how I’m trying to save in the moment when temptation strikes:

Maybe the most important financial advice ever?

No matter if you’re dirt broke, rolling in money or just doing okay. This bit of wisdom is something that’s always stuck me – and it comes top of mind anytime I see news stories about financial ruin.

The wisdom is this. If something seems too good to be true, it probably is.

This is the typical punch line to every scam story. The retiree who was sold a dream that cost them their life’s savings, and now has to go back to work. The business savvy investor who took a bad bet on a ponzi scheme, and is now out millions of dollars. The army vet trying to find herself, who devotes years of her life to a multi-level marketing scheme that pressures her into taking on tons of debt – with nothing to show for it. And all these people were promised that their investments were either secure or bound to reap the rewards….if they only keep pushing.

You might even consider the people who unwittingly wire thousands to bad actors on the internet, simply because they’re in love. Even the human experience of finding love can be rife with scam potential.

Which brings us back to the wisdom above.

How living below your means allows you to thrive

If you’ve don’t know the phrase “live below your means”, then you’re missing a pretty crucial piece of financial wisdom.

Here’s the deal. Lots of us would love to have more money. And this isn’t about greed: more money in the bank can give us the breathing room we need to feel financially secure.

Which is not something to take lightly these days.

How do you ‘feel’ about your spending?

No, really. Do you know your feelings and emotions around your spending habits?

I am a big believer in tracking your expenses. And for all the practical reasons, of course: transparency around our spending, increased awareness of our money habits, and a mathematical basis for being able to actually save as much as we mathematically can.

But there’s another quirk to expense tracking that doesn’t get talked about. And it’s this: it allows us to tap into our feelings about how we spend money.

There’s no shame in not knowing.

Gang, the financial fitness journey is challenging enough. The combination of mentality and behavior change alone can is new for many of us. And the consistency and diligence required to build wealth is a marathon all on its own.

Let’s not add shame to the mix.

If you’re someone who’s embarrassed that they don’t understand how credit card debt works, yet you have tons of it, let go of that shame now.

If you’re someone who has a mortgage, and you’re embarrassed because you don’t understand how escrow works or if you’re still paying PMI (private mortgage insurance), let go of that shame now.

If you pay for any kind of insurance – health, automobile, etc – and you’re embarrassed to admit that you don’t understand how deductibles or premiums work, let go of that shame now.

And so on and so forth.

Don’t cancel that credit card just yet.

If I could have it my way, I would only ever use 1 credit card for all my purchases.

Why? Because I’m someone who doesn’t like clutter…even though I’m human and fall victim to it time & again. It’s a mental load to me, knowing that I have multiple credit cards – all originally opened for different purposes – that don’t all get consistent action these days. And it’s a chore to go in and physically pay each bill. (Yes, I can automate this. But for reasons both valid and loopy, I refuse. Another post for another day.)

Maybe you’re the same way. Or maybe for you, having multiple credit cards is just too much temptation. That’s a far more reasonable excuse for wanting to close those accounts.

But as I made moves this morning to cancel one of my cards, I did a quick web search and soon realized that could be an annoying mistake.

All thanks to credit score math.

Being “good” with money isn’t just about having it.

Let’s get one obvious thing out of the way here. Having money is pretty great.

Being able to pay your bills – without worrying how you’ll afford the rest of your life – is critical for our well being. Having extra money on hand to enjoy hobbies, care for loved ones and treat ourselves from time to time – pretty awesome. And getting to a place where you can smartly put away money into savings or investments? That’s the dream right there.

And sure. It would be cool to get massively rich somewhere along the way.

But let’s not hold our breath on that last one, to decide that we’re “good” with money. Let’s not even hold our breath that we’ll hit a certain amount in our bank accounts or with our debts, before making that determination.

Instead, let’s decide right now that we’re good with money.

Student loans take no prisoners, too

Much like credit card debt, it seems, student loan debt can really take a bite out of your ~~financial~~ life.

I’m not talking about interest rates – which can be lower for federal loans, and downright predatory for private ones. And I’m not even talking about the high principal balance that a typical American student needs to borrow in order to afford even just 1 year of school. As bad as those things are, they’re not what I’m focused on today.

I’m focused on what student loans can do to your credit score – specifically, when you fail to make payments on time.

If all your money goes to food delivery- the temptation just got worse.

The Scoop: Doordash plans to offer an ‘Eat Now, Pay Later’ plan for those who’d prefer not to pay upfront for their food. Frankly, I’m not sure what to think.

The Pro: On the one hand, giving people the option to pay for purchases when they’re financially stable enough to do so always sounds great.