You read that right. I was bad with money.
I say “was” because I’m a firm believer that what you put out into the universe is what you attract. So… I was bad with money, but I am not anymore.
But also let me tell you how I got into that mess in the first place…
I couldn’t save if my life depended on it. Seriously. For years I’d blow my whole pay cheque in the 2 weeks before my next pay period. Mostly on food and clothing, as most of us do. And let me tell you it was so stupid. All that money I spent on food I could have put towards advancing my business, saving for a house, saving for my dream car, LITERALLY ANYTHING except going into my stomach. And that was a habit I cut out of my life in 2018. Now… don’t get me wrong. I’ll still go to brunch with my boyfriend and grab the occasional snack. But I cut back on my food spending DRASTICALLY. So if you’re looking to save yourself some extra money here and there…. stop spending it all on food.
The second largest mistake I got myself into was one that every single person gets into at some point. And it’s credit card debt.
When I got my first credit card I was working a full-time job and my limit was only $500. I had more than enough cash to pay off the card every month. Then I started college, got a part-time job, and still sort of managed my credit card. AND THEN. I applied for a second credit card. Worst mistake of my life. At the time I was working 2 jobs and going to college. One of my jobs allowed me to travel so I thought signing up for a credit card with lower CAD to USD conversion rate would be a good idea. So I did it, got approved, and promptly fell into debt.
I continued on the debt snowball for a long ass time after that. To the point where my credit card company wouldn’t even allow me to go $1 over my limit and I was totally getting ruined with interest. Flash forward to now? I’m rebuilding my credit and it feels SO good. Now that I’ve got more of a handle on my finances I plan out every single paycheque that comes into my life. I needed to make it easy enough to continue, but not hard enough to make it feel like I wasn’t having any fun.
As most of you probably already know I dropped out of college to pursue my blogging career but a lot of you don’t know that I also kept my part-time job! So I still have a steady income from my part-time job in addition to any money I’m making from my blog. So when it comes to finances I only spend a portion of my part-time job income and save all of the money I make off of blogging to reinvest back into my business.
As I said before I’m not a big believer in super strict rules… so here is how I break down my finances:
- 25% fun – shopping, eating out, etc.
- 25% credit card payment/mom payment
- 25% vacation/emergency fund
- 25% business savings
As you can probably see here I don’t have groceries, rent, etc. And that’s because I still live with my mom and she takes care of that for our family. BUT if you have those types of expenses to pay then those are your priorities and should totally be paid first! Also, let’s address the “mom payment”.
As part of my financial success in 2018, my mom agreed to pay off my credit card debt with her line of credit. So now I have to make my payments to her instead of on my credit card. Which is a total win for me because the bank of mom doesn’t charge interest. So I’m currently contributing most of that 25% to my mom. I say most because there are still some auto pay charges like my Apple Music and Google Apps For Work that comes out of my credit card every month. So I keep that money to auto pay off my credit card every month and give the rest to my mom. I truly cannot express how grateful I am for my mom and the fact that she did that for me so… mom if you’re reading this. YOU DA REAL MVP.
For the rest of the categories, I just slotted them based on my priorities. I have a few trips coming up in 2018 and I needed to start saving some cash money for them. So I added it to my budget. I’ll be the first one to say that I used to be terrible with a budget. But shifting my mindset from “I can’t” to “I will” has drastically changed my outlook on money and financial abundance.
So that’s it friends! My story all about how I used to be bad with money. I’m thinking of writing a “How to raise your credit score” blog. Would you be into it? Let me know in the comments below!
Talk to you soon! xx