An advocate for Financial Literacy

Soft life is nice… but are you funding it or financing it?

There’s a difference.

Funding = your money
Financing = debt, pressure, stress

Before you upgrade your lifestyle, upgrade your income or discipline.

Peace of mind > pressure to impress.

More assets = more options to live life however the hell you want

Baby Step 1 is saving $1,000 for a starter emergency fund.

Baby Step 2 is paying off all debt (except for your mortgage, if you have one) by using the Debt Snowball Method.

Baby Step 3 is saving up a fully funded emergency fund of 3-6 months of your expenses.

There's a big difference between that Baby Step 1 emergency fund and a Baby Step 3 emergency fund. When you're first getting started, getting $1,000 saved is a HUGE milestone. It's a mark of commitment to the plan, and it's often the first time many people have had that amount of money saved. Nope, $1,000 isn't enough for all emergencies, but it IS enough to take care of a lot of the minor ones that could come your way. The plan isn't to stay on Baby Step 2 forever, and only having $1,000 to fall back on should help to motivate you to pay off debt even faster so you can save a larger emergency fund after that.

Once you've paid off all of your debt, it's time to decide how much you'll need to save for your Baby Step 3 emergency fund of 3-6 months of expenses. To do this, add up what you spend each month on bills like rent/mortgage, utilities, gas, food, etc. (minus any savings or extra things you budget for). When you've got that number, multiply it by 3 or 6 to get the amount you need to save up. You may want to save 6 times that amount if your income changes month to month, or if you're a single income household. If you're married with 2 incomes, 3 months of expenses saved is probably a good amount for you since there's less risk that both incomes would go away all at once.

Saving is the art of securing one's future while being mindful of the present. It's a deliberate choice to set aside resources, whether it's money, time, or energy, with the intention of using them wisely down the road.

Financially, saving allows for a safety net in times of unforeseen circumstances, enabling the pursuit of dreams and goals without undue stress. Beyond finances, saving time or energy involves prioritizing tasks, optimizing efficiency, and investing efforts where they truly matter.

Ultimately, saving embodies a mindset of balance, preparedness, and prudent allocation, providing a foundation for stability, growth, and future opportunities.

End the year strong by ensuring you have savings for rainy days in January.

Closing Prices: 11 August 2023

"The number one problem in today's generation and economy is the lack of Financial Literacy." - Alan Greenspan

Join us in this Movement to Financial Liberty, and together as a community we can better our society and livelihoods.

Rest. But keep going. Attaining financial freedom is a long and hard journey but you've got this!

It all starts with your mindset.