Mom’s Guide To Finances

Do you know how many dollars you spend each month?

I don’t and…I’m in debt. Credit card debt. I honestly can’t tell you how I got here. I’m ashamed and embarrassed. It’s a heavy weight to carry. I never realized how easy it is to rack up the charges, yet so hard to pay it all off.

I have a fantastic part-time job that pays well, and offers the flexibility to pick my kids up from school, drive to and attend their after-school activities and manage the household – all of which are critically important to me. I love what I do, both personally and professionally. 

Yet I never quite took the time (or had the patience) to sit down and set – and adhere to – a budget. I am also aware that I use shopping as a pick-me-up. I typically don’t buy anything extravagant, but as the author of The One Week Budget, “The Budgetnista” says, it’s the small purchases (trips to Target and Nordstrom Rack) that add up the most. I love to buy things for myself, my friends, my kids. It makes me REALLY happy.

Having debt looming over me is a terrible feeling, but I realize I can take control of it. I woke up one night and one of my best friends from high school, Gwen, popped into my head. She’s a CPA and someone who could set me straight. And she has. I’ll share her advice with you. Believe me, 2019 is going to be the year I (and if you’re experiencing the same thing, WE) reign in spending and be (very close to) debt free. Even if you’re debt free now, I hope to share some advice that will help empower you financially.

Steps to financial success:

  1. Manage day-to-day finances by listing your expenses (all spending) into categories, and tracking against income. This will require a reduction in spending for me, and an increase in savings. I will be conscious of how I spend every dime.
    1. Tools: I asked our mom village to share some of their favorite budgeting apps, which included Mint, Buxfer, You Need a Budget and EveryDollar; and automatic savings programs like Digit and Qapital. Your bank might also have a convenient app (like Bank of America). I use old school Excel. There are apps that, in addition to budgeting, can also help you forecast and measure towards goals, like Simple (and the apps listed above).
  2. Write clear, measurable (and high) financial goals. Mine are:
    1. Be debt free by 2021 (using the Debt Snowball method, I will!); save >$100 monthly; use only cash/debit (no credit cards).
  3. Find resources to support and learn about budgeting (listen to a podcast, read a book, join a Facebook group, peruse a blog, find a mentor). I’m joining a “live richer challenge.”
  4. Spend 5 minutes daily tracking and reviewing finances.
  5. Find ways to save and make money: Ebates (cash back program), use the library (for eBooks, physical books and downloadable audio books through Hoopla), brainstorm side hustles based on skills, talent and passion (check out Fiverr). I also plan to read Tricks to Make You a Badass at Making Money by Jen Sincero. 
Recommended percentage allocation of your expenses.

I’d be remiss to blog about finances without mentioning investing, and there’s a local Austin company, Forefront Wealth Partners, who serves our mom tribe with the purpose of empowering women to live with confidence. They specialize in life’s transitions (new job, new baby, the decision to stay at home, preparing for high school/college, divorce, etc.). I love that there are experts who specialize in exactly what we need, at the exact right time. 

If you work for a company that offers a 401k plan, contribute at least what your company matches; or save money and open an IRA (unless you’re in debt. In that case, the experts recommend saving $1k for an emergency fund first, pay off debt, then contribute 15 percent to retirement savings). Maybe a future post will cover investing in more detail, but for now, I’m focusing on budgeting as my critical foundation.

Here’s to acknowledging I’m off-course, but course correcting and moving forward, knowing financial worry is turning into strong progress.

I believe once I make finances a priority, financial success will be mine to enjoy.  One last fun tidbit, follow @rachelcruz on Instagram.

The future is bright!

Any other mamas find some helpful resources for becoming debt free?

Brittany Jedrzejewski
Brittany’s two children (now a teen and a tween!), have gifted her with the most beautiful name (and role) in the world. Their journey together inspires her to pursue her passion of writing, a powerful catalyst that brings mothers together in sisterhood. As the Preemptive Love Coalition says, “When we live like we all belong to each other, we answer much of the longing in the world.” Brittany is grateful for a work-life balance in digital marketing @gemalto and as a brand architect working with female entrepreneurs who are making the world a better place for their clients. She’s also an outdoor lover, reader, memory maker, runner, joke teller, ambassador for the poor. Looking to publish The Virtual Village. She has a great Brad Pitt story and uses Instagram @brittfarjed to tell her story.

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