New Year, New Money

It’s New Year’s Eve Eve and I keep replaying the phrase “If you go into the New Year broke, it’s your fault.”

As I sit here tweaking my budget for the millionth time in 2016, I ask myself what is broke. To some it’s when you cannot pay your bills on time. To my mentor it is not being able to write a check to purchase your vehicle. And to those that subscribe to the Church of Instagram, it’s when you can’t forget when payday is. While poor is a mentality, broke is a reality.

Certified in business/credit repair: Check.

Avid follower of financial gurus: Check.

Bill automatic: Check.

But that doesn’t mean I’m not broke. To me broke is not having 2x my salary in savings. Broke is knowing that I have to go to work. Broke is knowing that I don’t yet have enough streams of income. Can I pay my bills on time or in advance yes, but that’s not a financial win rather an expected behavior of responsible adulthood.

Fast forward, you have 2 days left. How do you secure the bag, as DJ Khalid would say.

1. Accept your last name is not Gates, Kardashian, Hilton, or Buffet.

It’s very easy to get caught up in what we should have. But in the words of Gucci Mane, “my folks ain’t got nothing so If I don’t get I don’t got it” Stay true.

2. Realize that you have to say “no” sometimes. Money does not grow on trees.

You can have it all but not all at once. And if you have goals, they take preparation and sacrifice. Step one of sacrifice is the ability to say no for the greater good.

3. Establish a money journal.

Telling you create a spreadsheet sounds good, but reality is how often will you use it. NEVER. So let’s be more practical. Get a money journal to write your budget, goals, and daily expenses (yes I track every penny spent). But if that’s not an option there are several apps that can track your budget and alert you when you’ve gone too far.

4. Write down your expenses and look for ways to decrease each expense.

You can never be broke when you live under your means. If $2,500 is coming in every month no more than $2,000 should be going out. Anything more than that and it’s time to trim some fat.

5. Write down your debts. Attach a pay off schedule to each. Where can you make extra payments?

Paying bills on time is cool. But your debt to income ratio could also hinder you from getting approved for a house, car, or credit card. Compare your debt to your income. Also consider that along with payments comes interest. You don’t have money to be giving away. Find how to eliminate those debts and save not only the interest but the payment.

6. Automate bills.

Look at the calender. Determine which bills will come from each check. Set up automatic draft from whomever holds your debt for those dates. Payment history is 35% of your credit score.

7. Automate savings.

Savings is cliché. It sounds good until you how much less you have to do this with because you saved. But then again that’s adulting. Many of us are not that responsible, so like a bill automate paying yourself an allotted amount the same time every month.

8. Dedicate time each day to learning/growing your money like you do giving hearts on Instagram.

I recently read an article on CNN about a family that saved $30k in one year. He contributed actively updating and tracking his budget to his success. Like and follows don’t create income, follow your budget like you do social media!

9. Fear broke.

I know you’re tired of pressing ignore when creditors call. I know you’re tired of mentally robbing Peter to pay Paul to later steal from Paul so you can attend Happy Hour. And before you celebrate that not being you, ask yourself can you afford the turn up you have planned for New Years? If the swipe of your card will cause a bill to be late or your savings to starve here’s your chance to say no. As embarrassing as it may feel, the more you say no the more you know “I AINT BROKE!”

After the budget is set in stone, the ball drops, and the glitter is thrown, I’d like to wish you a Happy New Year!

And cheers to your new money!