Of course we want to give our children the world but do not go broke doing it. If you are a parent living paycheck to paycheck then you are spending your money on the wrong things. If you are not able to go 3-6 months without working and not having issues with keeping up with your bills then you are hustling backwards. It’s time to make some sacrifices.
Before now I spent a lot of my 20’s just “getting by” when it came to my finances. I didn’t have expensive taste but I wasn’t always so conscious of where my money was going. One day I realized that things could change, everything you have could be taken away at any moment, even your job. How many of us are really one paycheck away from being homeless? If you were to get sick for two weeks and did not get a paycheck things could change drastically for a lot of people and I did not want to be in that space. One day I was in the grocery store counting out how much money I had to spend, and I was sad. I did not like that I could not go in the grocery store and not buy what I wanted to eat. At that moment I made a conscious decision that I would make a better life for myself and become financially free.
I moved in with my parents on December 6, 2019 and I told myself I wouldn’t move out until my car was paid off, I had a 3 months of an emergency savings, and I could put a down payment on my first investment property. Staying at home was a challenge. My son and I shared a room, which was not big enough for both of our things but we made it work. I did pay my mom rent, I looked at it as if we were house hacking and I was happy I could help her.
Every dollar will get spent, the important part is telling it where to go. I began by budgeting my money and building my credit. My credit was never horrible but I began using my credit cards more responsibly to build up more score, I would pay off the carefully every month and I noticed that my score began to raise. I did have one bill in collections but that reached the 7 year period so it fell off. While budgeting I place every dollar somewhere. I opened 5 different accounts to include a bills, lifestyle (entertainment and personal items), long-term savings, short-term savings(self-help, vacations), and an emergency account. When my direct deposit it I paid myself first. Depositing into my emergency account, and short-term first. I would then add up all my bills and deposit money into my bills account then the rest would go into lifestyle. I used this for personal hygiene, any clothing I needed, fun with my son, and entertainment for myself. This would have to last me for two weeks. Once it was gone I would not go out on the weekends. I do believe in still having a life while on a budget, this was my form of self-care. I’m not where I want to be but I want you all to go on this journey with me. Also, comment below what methods you have used and sacrifices you have made to work towards financial freedom?
P.S. Today is May 7, 2020 and I am still living with my parents. Based on my calculations in regards to my finances and goals I will be able to move out in August of 2020