Financial Tracking: How I’m doing it right this time
I used to think that money was random. This notion didn’t occur to me randomly. Okay—maybe it did. Although, I believe the idea for it grew out of my experience with a carefree upbringing, where money was sometimes a struggle but never directly impeded my happiness. I didn’t count how much came in, and didn’t care how much went out.
My Relationship with Money
I’ve never been a reckless spender. I have a work-study job and have my share of random babysitting gigs; so I earn money. I might even go so far as to say that I saved too much at times, guilty for each penny I spent that wasn’t for school or a basic necessity.
Why I Sought Advice
As I engage deeper and deeper into a lifestyle design mentality, where I’ll be able to control my work hours and my happiness levels, I’m beginning to see a need to free myself financially. I decided if I couldn’t make enough money to meet my basic needs, I might be stuck one day at a job that I didn’t love. And that sounds horrible. I was thirsty for freedom.
And, what better time for me to begin small financial/business risks than when I’m in college and have the support network of my family to fall back on?
How My Money Mentality Was Altered
Myth #5: Frugality will make you rich.
I began reading Ramit Sethi’s blog, I Will Teach You to be Rich. This website gave me the easiest, most basic formula I’ve ever heard of that immediately solved my psychological barriers towards money. His basic premise is to earn more, not spend less. That idea, right there, is what I’ve been turning over and over in my mind for the past several days.
What it Means
- That you can’t use the “I don’t make enough money to save” excuse—you can just earn more.
- Rampant creativity and a healthy challenge (just because the concept is easy doesn’t mean the implementation will be).
- A well thought-out savings plan for the big purchases of your life: a home, car, house, etc.
- Increased risk-taking. (Example: I resolved to earn $200 per month outside of my regular job. This will surely cause me to stray outside of my comfort zone to meet that quota. As an added bonus, if I exceed that expectation I can choose to spend or save the extra money.)
In the end, plain ole financial independence.