Pondering important thoughts
I live my life according to a very specific set of values and ethics. Combined together, you could call it a life philosophy. My intent is fairly simple: do whatever I’m doing well and follow what makes me happy. I believe in hard work, in fairness, in equality. I think if you err you should recognize it and right it. I like to simplify and enjoy things. I want to work hard, do good and live well.
I have similar feelings on money.
For me, money is a tool I need a good amount of to do the things I want in life. My money philosophy is basically this: money is a tool, use it wisely. For me, wisely means spending consciously, cutting out spending wherever possible, and relying on myself instead of paying someone else for things I need.
My big picture goal is to own my time. The more detailed view of that is I want financial independence that allows me freedom from a 9-5 job. I want to travel, write full time, own a home, garden, lounge….I want the freedom of choosing to spend my time however I want to. Financial independence is the only way to achieve that.
Money allows me to do those things. For all of my adult life though, having a money philosophy seemed unnecessary. After all, I wasn’t making much as a waitress and I always had my student loans hanging over my head. I made enough to pay my bills, buy a drink and that seemed like enough. Money wasn’t a tool so much as a constant worry.
Making the decision to become debt free changed my relationship with money. I started tracking and challenging all my spending. I started using the debt avalanche method for my payments. I asked for raises I deserved, so I could make more money and pay off my debt faster. Now I’m less than two weeks from being debt free and my relationship to money is going to change (just a little bit!) once again.
I’ve realized something: I am not a financial risk taker. I am way more comfortable saving than spending. Debt payoff is perfect for someone like me. I head out in the world, earn my money and watch it come in. I make one simple online transaction, money leaves my account and the debt balance drops. I don’t have to overthink anything, I don’t have to worry about market fluctuations. I can’t lose anything except my debt.
I like having access to my money and I always have (through checking and savings accounts.) All that’s about to change though. I have to start investing in the stock market and I have to be aggressive about it. Early retirement doesn’t come to the weak of heart!
Living so frugally these last eight months has really changed how I view money, spending and myself. I’ve gone from being someone who likes to save but who happily spends for pleasure and for ‘needs’ (like getting my oil changed), to someone who DIY’s whenever possible and who avoids spending. It has not, however, made me any bolder with my money. That’s a part of my mindset that needs some beefing up! I want to continue to spend and save wisely, but I need to invest smartly and consistently. That means getting over my fear of the stock market.
As soon as I am debt free I will have taken a huge first step towards financial independence: I will own my money. It might not be a lot of money, granted, but it starts being all mine. For the first time in my life, every dollar I earn will stay in my bank account. I’m really, really excited about that!
While to some people it will look like I have more to spend once I’m out of debt, the reality is I have more to save. I want to continue to think through all my decisions carefully before pulling out my hard earned cash. I like the changes I’ve made in my life: living better with less, being mindful of my time and needs, coming up with alternatives to spending. It honestly makes me happy and less stressed. I want my money philosophy to guide me now that I’m actually going to have some money.
Spending consciously and being as self-sufficient as possible are habits that are here to stay. I control my spending, not the other way around. As I begin to take the next steps in my financial journey, I’m excited about what lays ahead. I’m excited to grow in my relationship to money. I’m excited to reassert my money philosophy. I’m excited for my life!
Kara Perez is the original founder of From Frugal To Free. She is a money expert, speaker and founder of Bravely Go, a feminist financial education company. Her work has been featured on NPR, Business Insider, Forbes, and Elite Daily.