Money Musings 💭 cash on cash 💵
I strongly believe there is no “right” or “wrong” when it comes to making decisions about our money. Our situations are all extremely unique, we value different things and different things make us happy.
To make decisions that are “right” for us, we want to be:
Conscious
Honest with ourselves
Intentional
As simple as this sounds, it’s not always easy!
In the personal finance world, there’s a lot of focus on decreasing your expenses. And believe me, that’s valuable. I cut my business expenses by 27% this year (before Coronavirus) and it felt incredible.
But sometimes no matter how many wise spending decisions you make, it doesn’t solve your issues - you continue to struggle to make ends meet. In that case it’s time to look at your topline (aka your income).
If you are a freelancer or running a business, that means your revenue model. If you work for a company full-time, or are looking to replace a lost job (like 20+ million Americans right now) that’s your salary.
Now, for many of us, waiting for a great job with the ideal salary to come along is not a financial reality.
My friend Erin Lowry (author of the Broke Millennial series) said it best when asked about her job search as a recent grad in 2008 during the Great Recession (and her advice to GenZ grads right now), “Be open to any job that is legal and will pay you.”
Regardless of whether or not you take on a job opportunity, it’s important to do so with eyes wide open. What does that new income mean for your lifestyle and goals?
Even before the pandemic, I’d see this happen all the time. Someone gets a job offer and is so excited to accept. They don’t run the numbers and once they are on the job, realize that their new income isn’t enough to cover their expenses. They end up taking on debt.
Carve out some time to look at your income or goal income. What do you need to earn to maintain your current lifestyle? If that’s not feasible right now, how will you adapt?
That might mean decreasing expenses, charging more or looking to acquire the skills necessary to get a higher paying job (or a combo of a few things!).
I know it can feel ironic or even futile to do this right now when things are so uncertain financially. But having a clear idea of our earning picture can help us make financial choices with confidence.
Get your party (sweat)pants on. On June 4th we’re hosting two Money Parties 🥳. Sign up for one of the time slots via these links:
PS ICYMI, we’re having another baby boy in September and I’m excited to talk about kids and money. We’ve put together a survey for parents and prospective parents in the Fiscal Femme Community so we can create the most helpful resources for you! We’ll be doing a drawing for an Amazon gift card to say thank you ❤️
MONEY MOVE OF THE WEEK
Get cash back on the things you already buy. Getting cash back is a very appealing proposition. Free money! But it’s only free money if we’re getting cash back on things we’d be buying anyway. Spending extra money on things we wouldn’t have purchased in order to get 2% cash back just means we’re spending 98% MORE than we would have otherwise. Spending 98% extra is not a great deal. 👎
Given that most of our shopping is happening online, it’s easy to set up cash back through sites like Rakuten (previously Ebates). Depending on where you grocery shop (groceries are a big part of most of our budgets these days), there are ways to get cash back through various apps and certain credit or debit cards.
YOU GOTTA SEE THIS
Money Party Playlist. If you are looking for some music to pump you up about your money, we have you covered. One of the most fun parts about our Money Parties is the Money Party Playlist. It’s a playlist of songs that spans genres and eras but what all the songs have in common - they’re upbeat and have a money message. 👊
Now you can listen along whenever you want. You can get the Money Party playlist on Spotify (+ the clean version) and on Apple Music (+ the clean version).
I’m always looking for recommendations - let me know if there are songs you want to add to the list!