How to tame the financial beast to get that job you want

Last day of my week-long social giving project; focused on being of value to you. It's also #financefriday. Let's talk $$$.

Everything is more expensive. Less and less Americans have disposable cash. I think other than those who are really, really well off, many of us would agree with my sentiment based on our own experience and that of those in our inner circle. Even upper-middle class people are feeling the pinch.

If you look at the graphic created by ConsumerAffairs , it's obvious debt is at an all-time high.

Without an emergency fund, and keeping the credit card debt monster at bay, everything else in our lives is harder, more frenzied, and unbalanced.

Question:

How much money do you have in your emergency fund? I'm not asking you to share. It's obviously a personal answer. Most of us

A recent survey by Bankrate , only 44% of Americans are ready for a $1,000 emergency.

Another 20% weren't ready for a $5000 emergency.

And many of us are paying minimum payments on a lot of debt.

THAT. IS. TERRIFYING!

Sure, many of us can put a thousand dollar emergency on a credit card. But what's that gonna do? It's a temporary Band-Aid on an open wound. And a Band-Aid that charges you to use it.

Life is hard. Inflation ain't no joke. Buying eggs is a luxury.

So what to do? If you're looking to transition from one job to another, and in a financial hole, you absolutely need to start tackling your debt; especially the emergency fund and those damn credit cards.

Without a little financial breathing room, most of us won't ever take the leap of faith into another career. We're shackled to our current job, and let me use an ungentlemanly word, 'screwed' if we get laid off.

Like, done.

Welfare and food stamps.

Food bank.

Asking family or friends for money.

Do you want that? I spent many years on the brink, and dipped into those options various times. It broke me. And as a head of household, I felt like an absolute, utter failure.

I don't want that for you. I want you to have the freedom to make the move to a job you'll be passionate about. It can't happen if you're broke.

So here's a tip on how to give yourself a little breathing room.

I am NOT a financial expert, but #jvknows.

First, stop digging. You're already in a deep enough hole. Put everything that isn't an immediate need on hold.

Getting out of debt isn't easy. Suck it up. There's no "get out of debt quick" program, no matter what a 20-something year old TikToker living with her parents, or a paid Youtube ad with some Crypto Bro tell you.

You got yourself in that hole over time, and it's going to take time to get out of it. But you'll never get out, unless you start right now.

COMMIT RIGHT NOW! Your future self will thank you.

How to start: Before anything, you'll need a budget, and the first thing is you need to figure out is where your money is going.

Hint: You're hemorrhaging cash. Take a week, follow your regular schedule, but write down every single penny you spend.

Do what you normally do, and be 100% brutally honest. Latte at Starbucks? Write it down. Mexican Pizza at Taco Bell? Write it down. Shiny new iPhone (whatever number we're on) that looks exactly like the one from last year and the year before? Write it down.

You'll be sick to your stomach at how much money you waste on stupid stuff each week.

This was one of the most painful exercises I ever did. You MUST do this if you're ever going to get out of debt. Everyone who gets out of debt, unless they just happen to win the lottery or have a rich uncle that leaves them a fortune, are going to have to do this if they want to get out of debt the right way.

Bottom Line: If you can't make more money right now, then you're going to have to cut expenses. It's basic math.

Back to the budget. Once you figure out how much money you're just throwing down the drain, you're going to have to change your habits and contrary to the "I want it now" society we live in, you're going to have to commit to sacrificing for awhile.

You'll have to create a budget based on your actual needs (Dunkin' Donuts isn't a "need"). Then figure out what you need to survive each month. Don't undercut your needs or you'll go rushing to the savings I'm about to teach you how to create. Make a reasonable budget and stick to those needs only.

This is a good budget sheet to use from a trusted source. https://consumer.gov/sites/default/files/pdf-1020-make-budget-worksheet_form.pdf

Remember, don't undercut your monthly needs or you will fail at this.

Now, regarding the extra money you save. Put it into an emergency fund. Put it somewhere that isn't super hard to get to, but takes an extra step. Maybe a money market savings account where you have to actually call the bank on the phone and (gasp), speak to a real human being, to get your money transferred to your checking account.

Or an account where you have to physically go to a bank to take the money out. When you open the account, tell them not to send you a debit card, or if they do send it, cut it immediately. Don't hide it "just in case." Get the scissors out and cut it in half.

Why? Cause if you're in deep debt, you have bad money habits and shouldn't trust yourself. As soon as it gets hard, you'll immediately go back to those bad habits.

You need to set up a roadblock to save you from yourself.

Even the smallest roadblock will give you a minute to get a hold of yourself and let your conscious mind take back over.

Once you set this up, start saving into that account like a madperson. Over time, save a week's pay. Then your typical 15 day pay cycle. Then a month. Keep going. Give yourself at least three months of breathing room.

You'll feel more confident in making the jump. Give yourself that three month $$$ pad and GO FOR YOUR DREAMS.

Now, while we're talking money management, I'd be remiss if I didn't talk credit cards because whether you get a great job or not, it's hard to be happy if you're drowning in debt.

I gave you the quick way to give yourself breathing room to go for that dream job.

Use that same energy to tackle the dreaded CC-word.

This is how you win with credit card debt. At least what worked for me. (I'm not a financial expert. This is solely my experience.)

While you're saving that extra cash in your emergency fund.

Separately:

1. Start paying only the minimum payment on every card except the one that has the lowest balance.

2. Throw whatever extra you would have paid above minimum to every other card on the one with the lowest balance.

3. Pay it off.

4. Then go to the second lowest. Pay whatever the payment you made to the lowest card to it. Keep paying only the minimum on all your other cards.

5. Do this over and over until all your cards are paid off. Use all the money you paid to your previously paid card to the next card you're paying.

**DO NOT use that money to celebrate. You have nothing to celebrate yet.

Commit to not using your cards once paid off. Put them somewhere like they don't exist. In my case, I handed them to my mother. I told her even if I had a temper tantrum in the kitchen like I did when I was a kid. Don't give me the cards unless SHE knew there was no other way I could get through an actual emergency.

Cause sometimes we be making up emergencies in our heads to go to Cancun on a girl's trip or a guys' weekend in Vegas.

So why the lowest card instead of the highest percentage? In my case it came down to little wins.

I needed to see I was getting somewhere to keep me motivated. Paying off a card in a short time motivated me to pay off the next, and then the one after.

Had I had to wait to pay off the one with the highest interest, which in my case also happened to be the one with the highest balance, I would have had to wait a year or more. I know Jose. Jose would have given up.

So if you're like me and need the little wins to keep you motivated, I suggest you give my system a try.

Between you and me, I know you CAN do this. But you have to stop saying "Tomorrow I'll start." As someone who tomorrow-ed for decades, I can confirm, you'll never arrive at it.

January 31st (or whenever you read this) is the very best day to give yourself the freedom that comes with controlling the prison debt keeps you in.

Any other reasonable ideas you would share? Don't go blaming people or getting into "you should have never gotten into debt" comments. Sh*t happens. It ain't like people don't know they shouldn't have gotten into debt. Share helpful comments.

#debt #financialplan #getoutofdebt