As someone who has financially excelled, loss a bag and had to rebuild to get it all back again. I understand the unique challenges and opportunities we face when it comes to building wealth and financial security. Financial independence is a journey, and whether you’re seasoned or looking to level up, these steps can help you take control of your money and your future.
Tip #1: Write Out All Your Expenses and Bills
The first step to mastering your finances is understanding where your money is going. Pull out those bank statements and review every transaction. This can be eye-opening—you might be surprised by how much you’re spending on things like subscriptions, dining out, or impulse buys. Writing everything down or using an expense-tracking app can help you create a clear picture of your financial habits. Once you know where your money is going, you can start making intentional changes to how you spend.
Tip #2: Get One Month Ahead on Bills
One way to stay ahead financially is to create a reserve fund just for bills. This means being at least one month ahead, so you never have to worry about missing a payment or playing catch-up. This cushion gives you peace of mind knowing that your rent, utilities, and other bills are covered no matter what happens.
Pro tip: Add a 15% miscellaneous expense line to your budget to handle unexpected expenses like car maintenance, car registration, or surprise bills. This helps you stay prepared without dipping into your main reserves.
Tip #3: Increase Your Income & Decrease Expenses
To truly take control of your finances, focus on increasing your income while being strategic with your spending. Look for ways to earn more money—whether that’s picking up a side hustle (like selling life insurance or freelancing), asking for a raise, or building skills that can make you more valuable in the workplace.
Investing in your skills will pay off in the long run. Learning new things, especially in fields like tech, finance, or real estate, can increase your earning potential significantly.
At the same time, cut back on unnecessary expenses. Do you really need all those streaming subscriptions? Could you cook more at home? Could you be mindful of how much electricity you’re using at home. Do you really need a 3 bedroom 3 bath to yourself?
Eat 80-90% at home and pack lunches
Cancel all unused subscriptions
Get a roommate or 2
Renting rooms in my home to other women professionals has allowed me to have 80% of my mortgage and utilities covered every month, reducing my cost of living dramatically. I use the extra money to buy stocks and build my treasure funds ( keep reading for more on that)
I saved almost $500 a month by meal prepping, $800 bundling my home and auto insurance and approximately $1323 in unused subscriptions & memberships. Reduced my Electricity bill by $70+ by buying night sensor night lights.
These small changes can add up and help you build financial momentum. Remember this doesn’t have to be forever just for a season of your life.
Tip #4: Pay Off Consumer Debt
Debt can feel like a weight that’s holding you back, especially when it’s high-interest consumer debt like credit cards or personal loans. Make a plan to pay off this debt as quickly as possible, starting with the highest interest rates first. The faster you pay off your debt, the more money you’ll free up for saving and investing.
Tip #5: Build Treasure Funds (Not Emergency Funds!)
I like to think of savings as “treasure funds” because it’s more positive and empowering than calling it an emergency fund. Aim to save 3-6 months of living expenses in a high-yield savings account. This money is your financial safety net if anything unexpected happens.
But don’t stop there! Set up specific funds for things you want to enjoy—like travel, holidays, or even a Christmas fund. By automating your savings and having separate accounts for these goals, you’ll be ready when the time comes to enjoy life guilt-free.
Pro tip: have an automatic deposit of 10-15% from your paycheck to a high yield saving account.
Tip #6: Invest in Your Future
Saving is important, but investing is how you really build wealth. Contribute to your 401(k) if you have one, and make sure you’re getting any employer match—it’s free money! Open a Roth IRA for additional retirement savings and consider opening a brokerage account to start investing in stocks, ETFs, or mutual funds. The earlier you start investing, the more time your money has to grow.
Tip #7 Avoid lifestyle creep
Live below your means. You will be tempted to upgrade your lifestyle or treat yourself with luxury items and vacations when you income increase. Say this with me…Delayed gratification. The goal is the increase your income without spending more so you may have extra money to invest in assets. This increases your net worth. Wait to buy luxuries with the profits of your assets not your income.
Tip #8: Be Patient and Stay the Course
The journey to financial freedom isn’t always easy. You will make mistakes, and financial setbacks will happen—but that’s okay! What’s important is to stay the course and not let temporary setbacks derail your long-term goals.
Enjoy the journey and remember that you’re building a life of freedom and abundance.
If you’re ready to take your financial journey to the next level, check out my financial planner designed to help women like you track expenses, set goals, and build wealth. [Buy it here].