{"id":556,"date":"2023-07-02T18:27:19","date_gmt":"2023-07-02T23:27:19","guid":{"rendered":"https:\/\/mhockman.com\/?p=556"},"modified":"2023-07-02T18:27:21","modified_gmt":"2023-07-02T23:27:21","slug":"happy-financial-independence","status":"publish","type":"post","link":"https:\/\/mhockman.com\/index.php\/2023\/07\/02\/happy-financial-independence\/","title":{"rendered":"Happy Financial Independence?!"},"content":{"rendered":"\n
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Celebration Cookies for the 2023 Grad!*<\/figcaption><\/figure>\n\n\n\n

With school graduations happening everywhere, it\u2019s not hard to reminisce about my own graduation. While some kids knew what they wanted to be when they grew up, many of us were still trying to sort things out. I remember thinking, how am I supposed to decide what I want to be when I grow up and select a college major and career trajectory for the rest of my life?  I had barely been anywhere that didn\u2019t involve visiting family or the place with the Big Mouse and his friends.<\/p>\n\n\n\n

Unfortunately, just getting a college degree doesn\u2019t guarantee a happily ever after, especially if that degree comes at a very high price in the form of student loans. So many people talk about living paycheck to paycheck and usually this is good in the sense that it means they have a job. However, it is not good as this also means the cash flowing in is usually already going out to pay bills, if there is even enough to cover the bills.<\/p>\n\n\n\n

Cash flow is very important as it can be the difference in families keeping the lights on, feeding their children, and even keeping a roof over their heads.<\/p>\n\n\n\n

Literally, a positive cash flow can mean someone does not end up moving in with family, sofa surfing, or worse, homeless. Ironically, this term \u2013 Cash Flow – is usually only discussed in the business realm even though it applies to personal finance as well. Lately, you may hear the term \u201cincome streams.<\/a>\u201d This refers to the various forms of cash flow. It\u2019s trendy to discuss part-time jobs as \u2018gigs\u2019 and you can have several \u201cside hustles\u201d for income streams. This is another way to say having several jobs part-time, or otherwise, to keep the cash flowing in.  <\/p>\n\n\n\n

That all said, even having several income streams may not be enough to keep a positive cash flow. There are people who make six figures and still may be living paycheck to paycheck. If making a high salary or having several jobs is not enough to keep a positive cash flow, what else is needed?<\/p>\n\n\n\n\n\n\n\n

Good Habits!<\/a> Plenty of articles provide tons of financial advice so sorting out what is best or where do you start can be overwhelming. I have had friends tell me \u201cI am not good with money!<\/em>\u201d Not being good with money is not a life sentence. It does require a change to live differently which is easier said than done. However, it CAN be done \u2013 baby steps! One of the first steps is to look at all of your bills and your income. Do you have any cash left after paying the bills? This is the hardest part: identifying where the problem lies, be it too many bills\/not enough cash, shopping too much, or just not saving money!<\/p>\n\n\n\n

Usually, it is a combination of multiple factors. And it can be \u2018all or nothing\u2019 thinking \u2013 meaning, if you can\u2019t save a lot of money, it\u2019s not worth trying. Step one is setting up an emergency\/savings account \u2013 even if means saving only $5 per paycheck. Even $5 per paycheck is starting a good habit!  Yes, even if you don\u2019t think you can do this \u2013 you can!! <\/p>\n\n\n\n

Next is to identify: are you spending too much on things that you could cut back on or change? Yes, most will say, cut out that \u201cfancy\u201d coffee and you know, if you have a daily Caf\u00e9 Mocha habit \u2013 making coffee at home could help give you the $5 to start your automatic savings for your emergency fund. If things are not that easy for you, it may be time to look at what larger bills can be cut and\/or do you need to find another income stream. Shoot, even if you are covering your bills \u2013 did you know (if you have Verizon), you can go to their website and it will review your usage and recommend the best (cheapest) plan!  I have done this several times.<\/p>\n\n\n\n

When I was in my early 20\u2019s and first working, sharing an apartment with roommates and still trying to finish a degree, I was super busy. Buying lunch out every day was expensive, yet I also didn\u2019t have a lot of time either.  I admit for a few months, I made and ate peanut butter and jelly sandwiches. Yes, on the days that I had evening classes, I made 3 peanut butter sandwiches (PB&Js) \u2013 one for each meal! I only had to purchase a drink. Before you feel too sorry for me, I like peanut butter and jelly sandwiches. I only had to do this for a few months until I got a raise at work! <\/p>\n\n\n\n

I bring this up to say that while it may sound painful, you need a short-term and a long-term plan to improve your finances. As much as I like PB&Js, even I couldn\u2019t keep up that habit more than a semester or two. When my old car \u201cleft\u201d me, I bought my new car<\/a> and then, one of the roommates moved out! Instead of only paying 1\/3 of the rent and utilities, I was paying half. Eek! I realized I had only enough money to cover some bills and none left for the car insurance, gas, and food money! Not even the PB&Js! Thank God for waitressing jobs \u2013 I was able to work a few nights per week. One of the great things about waitressing is \u2013 TIPS! I usually made enough to put gas in my car for the week, provide cash for lunch and some groceries, and while the paychecks were small, I was able to start a savings account and use that money to cover the car insurance. Also, guess what I love more than a PB&J \u2013 pizza! Working at a pizza place also provided a free meal on the nights I worked. Again, I only had to work the extra job until the next raise at my day job.   <\/p>\n\n\n\n

Depending on where you are in your financial situation, it may be harder than a few PB&Js along with an \u2018extra gig\u2019 here or there. However, a problem once identified is a problem that can be solved!<\/em><\/strong> Looking at your finances, you may need to put multiple strategies into action like the Debt Snowball<\/a> method. It may take changing jobs to get that \u2018raise\u2019 at work to get the income stream positive. That said, starting \u2013 even with only saving $5 \u2013 can be the first step! And while it may feel impossible, dream about your future and where you would like to be financially. Keeping that vision can help you start and keep those good habits and that will lead you to a more comfortable life.<\/p>\n\n\n\n

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Butterflies are Free!<\/figcaption><\/figure>\n\n\n\n

*Kaela’s Cookies – Falls Church, VA (@Kaelas.Cookies)<\/p>\n

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With school graduations happening everywhere, it\u2019s not hard to reminisce about my own graduation. While some kids knew what they wanted to be when they grew up, many of us were still trying to sort things out. I remember thinking, how am I supposed to decide what I want to be when I grow up and select … <\/p>\n

Continue reading “Happy Financial Independence?!”<\/span><\/a><\/p>\n

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