If the term “financial” in the headline made you want to skip this post, trust us when we say you’ll feel a lot better about it and its place in your life by the conclusion.
Tiffany Aliche has always been more at ease with money than the majority of people. Her father worked as a CFO and accountant, and he taught his five children about money. Tiffany was astonished to learn that not everyone, particularly women, shared her viewpoint.
“Not only do women earn less than males, but they also have less access to financial knowledge,” she explains. “Not only did you make less money, but you’re also less likely to know what to do with it.”
Tiffany is attempting to close the distance. She is known as “The Budgetnista” and is the co-host of the Brown Ambition podcast. She has written a financial counseling book, Get Good With Money, and teaches financial courses through the Live Richer Academy.
She’s also aiming to provide the next generation with better money management tools as a former preschool teacher. Tiffany lobbied for a law requiring financial education for middle school children in her home state of New Jersey. Then it’s on to elementary schools.
Tiffany talks to SUCCESS’s Madison Pieper about forgiving yourself for financial mistakes and why concentrating on financial wholeness is more realistic for most people than financial independence in this episode of SUCCESS Stories. She also gives tips on how to avoid impulse buying. Listen to the program and keep reading for Tiffany’s money tips.
Don’t be too hard on yourself if you’ve made poor financial decisions in the past.
Everyone might recall a financial blunder that still causes them embarrassment. Perhaps you took on debt that you couldn’t repay. Perhaps you were duped. Perhaps you lent money to someone you shouldn’t have.
Before you can go on, you must forgive yourself for whatever financial mistakes you’ve made in the past. And you must believe that, despite your errors, you are capable of establishing a solid financial basis for yourself.
Related: IS SUCCESS ABOUT FULFILLED LIFE
The secret that many financial experts won’t tell you—but Tiffany will—is that managing money in a way that allows you to live a happy life isn’t as difficult as it appears. You can master the financial essentials you need to succeed if you can hold down a job, raise children, and plan a wedding.
Tiffany comments, “You’re already demonstrating aptitude in other aspects of your life.” “It’s a confidence issue, not a capability one.” “If I can do this, I can certainly do that,” tell yourself.
Aim For Financial Stability.
If one of your unmet financial goals is to have enough money to accomplish everything you want for the rest of your life, it’s time to try something different.
Tiffany refers to this as “financial freedom,” but she points out that it’s a really exclusive way of thinking about money.
The majority of people will never get to this position. However, everyone can reach financial completeness, a concept Tiffany discusses in her book based on ten core financial areas. They are as follows:
- Budgeting \sSavings
- Debt \sCredit
- Investing for wealth and retirement Investing for wealth and retirement
- Net worth in insurance
- Your finance department
- Creating an estate plan
- You can give yourself the life you desire regardless of how much money you make or have access to if you can obtain these 10 components in hand.
Stop Spending On the Spur of the Moment.
Anyone who has ever returned from an internet shopping binge or a Target run unsure of what they purchased understands the allure of the impulse purchase. These appear insignificant at the time. Yes, you had to withdraw $100 from your savings account, but it was well worth it to acquire that new rug, those new guest towels, and… what else did you put in the cart?
These minor costs pile up, preventing you from spending more money on items that will bring you more joy and satisfaction in the long run. Tiffany employs three strategies to ensure that her money is spent on things that will provide her long-term happiness:
Make Your Money as Inconvenient as Possible.
Make it more difficult for the future version of yourself who is tempted to indulge in some rough love.
Tiffany suggests dividing each paycheck into four accounts:
- For everyday purchases, you’ll need a checking account.
- A bill-paying account with its own credit card
- A short-term savings account that may be accessed online (aka the emergency fund)
- For larger financial ambitions, such as buying a car or a house, an online long-term savings account is available.
- The importance of the internet component cannot be overstated.
Money transfers from online savings accounts to checking accounts take anywhere from 24 to 72 hours. That means you can’t quickly tap into your savings if you’re tempted to spend more on an impulse buy than you have in your current account.
Even a brief break can be enough to bring you back to reality. When you have to wait 24 hours to finish a spontaneous purchase, it becomes considerably less enjoyable. “Inconvenient money gets saved,” Tiffany explains.
Consider How You Truly Feel About the Transaction.
Before you buy something, consider the following questions:
Do I require it? Is this anything that will keep your health and safety in check? For example, food and medicine.
Is it anything I adore? Will you be able to enjoy this item a year from now? Vacations, for example, or a television
Is it anything I like? Is this stuff going to give you satisfaction for less than six months? Do I want it, for example, a rug or a culinary gadget? Is this just for immediate gratification? For example, a candy bar or nail polish
Need and love take precedence over likes and desires. Set aside money for these things as a top priority.
Accept Your Love Bank’s Offer.
Focus on putting money into your Love Bank once you’ve decided how you truly feel about a purchase. This may be a real bank account where you put money aside for those “Love” purchases.
Put money into your “Love” account, for example, if you’re tempted by something you know is simply a “Like.”
Making decisions in this manner can also make it easier to explain them to others. If you’ve concluded that dining out is a “Like” for you but that traveling to London is a “Love,” tell folks you’re saying yes to London when they ask you out to dinner. You’re saying yes to a fun opportunity instead of saying no to them, which feels negative.
“It actually makes your pals thrilled,” Tiffany explains, “and you may discover that they suddenly want to say yes to what’s in their Love Bank.”
Money ceases being the thing that gives you nightmares and starts being the thing that can make your dreams come true when you know how to manage your finances.