Millennial Money Guide

👇 HOW TO SET MONEY GOALS YOU CAN ACTUALLY ACHIEVE

✨ Bookmark this post for future reference!

Having money goals and big dreams is all fine and dandy, but formulating and articulating an actionable plan to get you from point A to point B is what makes all the difference

That’s why today I want to share with you my 3 Ws OF INTENTIONAL FINANCIAL GOAL SETTING

This method is one of the BEST methods I’ve found for setting money goals you can actually achieve

You ready? Let’s dive in!

THE 3 Ws OF INTENTIONAL FINANCIAL GOAL SETTING

For any and every financial goal you set (whether it’s saving for a big purchase, a fun vacation, or something in between), always start by determining your 3 Ws:

1️⃣ WHAT are you committing to achieving your goal?

2️⃣ WHEN do you want to achieve your goal by?

3️⃣ WHY are you doing this? (Basically, what is your end-goal?)

THEN write down your goal using this easy format and fill in the blanks with the 3 Ws you’ve determined:

👉 I’m going to … for the next … so I can …

SOME EXAMPLES OF THIS IN PRACTICE:

💰 I’m going to save $250 a month for the next 4 months so I can build my starter emergency fund

✈️ I’m going to $100 from every paycheck for the next 12 months to I can book a bougie girl’s getaway to Tulum

WHY THIS WORKS

Using this format for financial goal setting works because it’s SPECIFIC and TIME-SENSITIVE. There’s no question about what actions need to be taken and you’ve set a deadline for yourself to achieve the goal.

Now, instead of just dreaming, you’ve formulated an actionable plan. The only thing left to do is to get to work!

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P.S. Ready to create an plan for achieving your savings goals and confidence and ease?

My 1:1 💸 COACHING program is designed to help you do that (and so much more!)

If this sounds like the answer you’ve been searching for, I’d love to chat! Link in bio!

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4️⃣ TIPS TO IMPROVE YOUR WRITTEN BUDGET (Save this!)

I’m all about sharing my favorite tips that make managing your finances a breeze

So here are my 4️⃣ best tips for getting the most out of your written budget:

1️⃣ ADD DATES
This is a simple trick but it’s super useful! Including dates for when your bills and payments are due helps protect against missed payments and annoying late fees

2️⃣ USE BUDGET CATEGORIES
It’s much easier to list your known expenses when you split them up using broader categories. Determine your major categories first, THEN list your expenses under each

3️⃣ ITEMIZE EVERYTHING
I like to treat our budget like a task list so itemizing everything ensures nothing gets overlooked. For example, instead of listing our total monthly savings as one line item, I like to list each item separately like this:

💰SAVINGS:
▪️Roth IRA: $250
▪️Emergency Fund: $125
▪️Travel Fund: $50
▪️Treat Yo Self Fund: $50
▪️House Fund: $250

Once a bill has been paid or a savings target has been satisfied, I cross the item off my budget list so I know it’s been taken care of 👍

4️⃣ ORDER BY PRIORITY
Ordering budget categories and expenses by priority is a psychological trick that helps to keep things in check. For us, giving back comes first, then savings and investments, then bills. With these priorities taken care of the money that remains is fair game for spending.

✨ COMMENT BELOW: Which if these tips are you looking forward to trying?

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📍 NEW TO BUDGETING? START HERE

When it comes to creating your first budget, figuring out where to begin can leave you feeling lost and confused

🤔 Should I prioritize paying off debt?

🤔 How much should I allocate to savings?

🤔 Am I going to have to give up Starbucks?

All of these questions can be answered in due time but before you can make a plan for your money you have to figure out where you stand with it RIGHT NOW

So here’s what you need to do before getting started with BUDGETING:

✨ AUDIT YOUR CURRENT SPENDING HABITS ✨

This is an excellent way to learn the true story of where and how your money is being spent

With this awareness and clarity, you’re better able to build a plan for your money aka YOUR BUDGET

LET’S BREAK IT DOWN:

1️⃣ Gather your bank statements from the last 3 months. These statements should be from ANY account you use to spend money including checking accounts and credit card accounts

2️⃣ Review and categorize EVERY expense with categories that make the most sense for you. These categories could be bills, food, gas/auto, shopping, hobbies/going out, savings, debt, etc.

3️⃣ Add up the total amounts spent in each expense category and analyze what it reveals about your spending habits. Ask yourself questions like:

👉 What categories am I overspending in?

👉 What priorities need to be shifted?

👉 Are my current spending habits moving me closer to or further away from my goals?

With this new insight as your guide, you’ll be better able to create a REALISTIC BUDGET that aligns with the way you actually spend!

✨ QUESTION: Have you ever audited your spending?

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💸 GET YOUR MONEY PRIORITIES STRAIGHT

If you did an audit of your recent spending today, what would it reveal about your priorities? 🤔

It's a common misconception that when you get on a budget, you have to deprive yourself of all the things you love

No more Starbucks, Target runs, or avocado toast!

🙅‍♀️ This however is the further way from the truth!

🚨 BUDGETING IS ABOUT REPRIORITIZATION, NOT DEPRIVATION 🚨

When it comes to your money, it’s important that your priorities are appropriately reflected with your spending habits and how you budget your money

☕ Maybe you love coffee but don't care about at all about having the latest iPhone or driving a new car

🍲 Maybe you never spend money at restaurants because preparing a delicious home-cooked meal brings you joy

🏡 Maybe saving a down payment for your first home is the most important thing to you right now and you've cut out everything else that might distract you from this goal

Your BUDGET should reflect these PRIORITIES

👉 ASK YOURSELF THIS: Do my spending habits properly align with my current priorities?

Stay tuned 😉

This week’s posts will be dedicated to my favorite tips, tricks, and advice on the topic of BUDGETING and SPENDING

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🎓 4️⃣ RULES OF PERSONAL FINANCE

Let’s take things back to basics!

The great thing about these rules is that they never change. They'll always be the same no matter how big or small your bank account is.

1️⃣ Spend less than you earn. ALWAYS.

2️⃣ Budget and track your expenses

3️⃣ Make saving a habit

4️⃣ Prepare financially for emergencies

👉 QUESTION: Which of these rules do you need to work on following?

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Rewriting your financial future starts with one teeny tiny choice

I know that sounds HELLA dramatic but stick with me here

From BARELY SURVIVING to THRIVING

From I CAN’T DO THIS to I CAN TOTALLY HANDLE THAT

From CLUELESS to CONFIDENT

For real though sis...what choices will YOU make today to change your tomorrow?

Here are a few ideas to get your gears spinning:

🐯 Take a break from your binge to create your first budget or update your current one (then come back here and comment below with what you thought about the show 😂)

📕 Read a chapter in that personal finance book collecting dust on the shelf before bed tonight

🤝 Make a commitment to tracking your spending for the rest of the month to see where your money is really going

💰 Open up a new savings account and get started on building your emergency fund

COMMENT BELOW: What small choice will you make today?

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QUESTION: How much should I save for my emergency fund? 🤔

✨ Bookmark this post for future reference!

1️⃣: 1-2 MONTHS
If you’re just getting started, aiming to save 1-2 months worth of expenses sets a solid foundation to build upon. Set a goal of saving this as quickly as possible if you’re starting from zero.

2️⃣: 3-6 MONTHS
Beyond that, the stability of your income should be considered. In general, 3 months' worth of expenses is suggested for households with more than one income, while 6 months is suggested if things are more unpredictable.

3️⃣: 12+ MONTHS
Although saving 3-6 months worth of expenses is often regarded as the standard, many people go a step beyond and build a 12+ month emergency fund. Doing so can provide even more freedom and financial security.

Remember, these are just suggestions.
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👇 THINGS TO CONSIDER
When determining the actual dollar amount to save, take into consideration the expenses that would need to be covered in case of a sudden loss of income such as:
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🏠 Rent
🚗 Car Note + Insurance
💡 Utilities
❤️ Health Insurance
🍊 Groceries
⛽️ Gas
.
You’ll notice that things like Netflix subscriptions and money for dining out aren’t included on the list. Sure, these things are nice to have, but when it comes down to it, they aren’t necessities.

COMMENT BELOW: Have you built your emergency fund?

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Double tap if you needed this reminder ❤️

Here are a few things I’m taking control over during this time of uncertainty:

1️⃣ TIME SPENT REFRESHING MY TWITTER FEED
Social media can be consuming but only if you let it. Early on, I noticed myself getting caught up in all the news and it seriously started to affect my mood/mindset. Since then, I’ve made it a point to only check social media at specific times throughout the day. I suggest you do the same 😉

2️⃣ MY URGE TO IMPULSE SHOP ONLINE
Let's be honest. Being stuck in the house can get BORING even for the proudest introvert (aka me. umm hi 🙋‍♀️🏾) And you know what's NOT BORING? Online shopping, that's what. CAN I GET AN AMEN??😂 Whenever I‘ve felt the itch to shop, I remind myself of where my true money priorities lie (saving for a house, building our retirement funds, etc.) and ask whether or not the purchase moves us closer to or farther away from those goals. That’s not to say that I think spending is evil or that all shopping should be cut out, but I am being much more thoughtful about the few purchases I do make.

3️⃣ OUR ROTH IRA CONTRIBUTIONS
Hubby and I had a serious conversation about money last night. We are blessed to both still be employed which is more than many people can say at this time. Despite feeling relatively stable, we both agree that given the current climate, briefly temporarily pausing our Roth IRA contributions and using that money to pad our emergency fund instead is the smarter choice right now. No one knows how long this will last so we’d rather be extra safe now than sorry later. In the end, we can always make a lump contribution once things return to normal

🚨 NOTE 🚨 Please do not take this as investing advice for yourself. We are simple doing what makes us feel most comfortable in this season of life.

WHAT ARE SOME THINGS YOU’RE TAKING CONTROL OF IN THIS SEASON?

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Double tap if you needed to hear this ❤️

Personal finance is a journey and no journey happens in a linear fashion. There will be twists, turns, detours, and roadblocks.

Recent happenings may have thrown you for a loop but remember this:

These are only temporary setbacks and you CAN and WILL get back on track

Give yourself some grace.

Tag a friend below who needs this word of encouragement today 💕

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