Money Musings 💭 are you clear on your 💰 goals?
Over the years, I’ve gotten really good at keeping my spending down.
When I want something, I brainstorm if there are other ways to get the same experience (or better) for less money. I pause and give myself at least 48 hours to make sure I really want it. I think about the opportunity cost (i.e. what else I could I do with that money).
And believe me… despite all of that, I still make mistakes and purchase things I regret.
This past year, I’ve started to pay more attention to my spending. How can I indulge in things that will make me happy without the guilt? Can I give more to organizations doing incredible work? Can I upgrade my lifestyle if I’m meeting my goals?
I’ve heard from many of you that you have similar questions:
When can I stop feeling like I always need to be saving?
How much saving is enough?
Am I on track to reach my goals?
What even are my goals?
And while, all the exercises I listed above are great, in order to get clarity, peace of mind and reduce our guilt around our spending, we have to have clear goals.
That means knowing how much we need for each goal, by when we will achieve it, as well as which goal comes first.
Is it more important to me to pay off ALL of my student loans before saving for my future home? Do I want to aggressively save for retirement (and retire early!) or take an extra vacation each year?
This makes everything else fall into place.
It provides clarity and confidence in our financial plans and reduces our worry and guilt. Yes, please. 🙋♀️
On February 17th at 5 pm EST, I’m going to be hosting a workshop that will answer those three questions: Create Your 2021 Financial Goals (+ Money Party 🎉). Tickets are on sale now!
During this workshop, I'll walk you through setting your financial goals and what that means for 2021. We’ll also have a Q&A and time at the end to get started.
PS: Next week we have another takeover coming your way! You’ll be hearing from Jamila Souffrant, the founder of Journey to Launch. You are in for a treat!
PPS: If you are are in the Fiscal Femme $$$ School, attendance to this workshop is free.
MONEY MOVE OF THE WEEK
Find the opportunity cost of your spending.
Regardless of how much money we have, we can only spend each dollar once. I know, it stinks. That means that every time we use a dollar, we miss out on the opportunity to use it somewhere else (opportunity cost!).
I could order takeout from my favorite restaurant 🍽, I could use the same amount of money to buy nicer ingredients (and a bottle of wine 🍷) to make a fancy dinner myself, OR I could make an inexpensive dinner and put the difference towards something else.
There’s no right or wrong answer, but I can only put those dollars toward one experience or goal. This week, look at each of your expenses in terms of other things that make you happy. Would you rather spend that money elsewhere? Or put it towards a top priority goal? It can help you see which expenses are worth it to you.
YOU GOTTA SEE THIS
Black History Month - Celebrate & Get Educated. Black History Month is a wonderful opportunity to celebrate the incredible contributions and history of the Black community. For non-Black folx it’s also an opportunity to educate ourselves and continue to recommit to anti-racism work.
Celebrate Black History Month (virtually!) with these amazing events and resources:
Kick off Black History Month with Ibram X. Kendi and Keisha N. Blain
Commit an evening to a virtual event that Inspires action, education, and connection
Check out one of these Netflix documentaries