Money talks...always hated them because it kicked up all sorts of fear for me. I was never good with money, and I believed that I would never be good with money. So my naive solution to my problem was...I will always hand it off to someone else to take care of it for me. I will stay in my lane and just find smart ways to spend the money. My plan did not serve me well. My ultimate failure thus far would be, how I managed money throughout my 40 years of existence (If you didn't get to read my perception on failure, click here).
Soon after I left the 9-5 world and started my own business, I found myself having money problems all over again. I was so frustrated that I was back in this place because I worked my butt off to work through my past mistakes. Here is the short version of my toxic journey...I discovered credit cards when I stepped foot onto my college campus and the free stuff won me over. I opened a few more credit cards and found myself in a mess. Because I was daddy's little girl, he bailed me out several times. Soon after grad school, I decided to buy a loft in DTLA and my parents helped with 10% of the down payment. The loft was definitely way beyond my means, but I was adamant I can handle the mortgage. Ended up having to foreclose on the loft and almost considered filing for bankruptcy. You would think that was enough for me to learn my lesson, but nope...the saga continues... After 7 years the foreclosure fell off my credit history and my credit score shot up to the 800s because I diligently paid off every credit card debt. Because I was told that my credit score is my ticket to everything, I kept using my credit cards and simply paid off all the balance at the end of the month. That method only worked when I had consistent pay each month. The moment that pay no longer became consistent, that method of using my credit card and pay it all off no longer worked. Why? I simply didn't have the money. I was spending money way out of my means. I believed you only have 3 financial options when starting a business: 1. You have the capital/cash to cover start-up costs. 2. You have investors coming alongside your business plan. 3. You borrow money from a bank. Because 1 & 2 were not options for me at the time, I went with option 3. Because my credit score shot up to 826, I was instantly approved for $50,000 and within 15 minutes, that money was in my checking account. That borrowed money was my start-up money for As We Dwell. I told myself for years that it was "good debt" because of the mission and vision I had for As We Dwell. As each year went by, my money problems continued to compound and grow. I wanted to understand finance & I wanted to be better. So I took finance workshops, I took finance classes, I read finance books, and I still ended up feeling confused and defeated. Everything just went right over my head, and I wanted to throw in the towel. Then one day, a business deal went south and left me in a predicament. I was ready to play victim and point the blame towards them, but when I spent some time to reflect, I realized I was the problem. My relationship with money was the problem. I brought myself to this point, and I had no one else to blame. Dave Ramsey was a name I heard for a couple of years. Although I respected what he was doing, I was very adamant that his methods didn't work for business owners. It was meant for people who made steady income. His radial ways of cutting up credit cards and only using cash sounded absurd and impossible. I have learned over the years if something continues to come up over and over again, it usually means God wants my attention and he's waving a huge sign saying..."Sarah, this is it...this is what I have for you." So I reluctantly tuned into Dave Ramsey's podcast and intently listened to his advice to real life problems and real life people. That's when I first learned about his 7 baby steps. Then I started to read his book Total Money Makeover, and for the first time in 40 years, I understood what someone was saying about finance. His 7 baby steps were so simple, and I could actually grasp his financial principals. This is the common sense that was missing in my life?!?!! There was nothing fancy and complex about Dave Ramsey's strategy of get out of debt. You only spend what you have and it all starts with a plan & budget. Although Jason had his reservations about Dave Ramsey, I'm beyond thankful that he is willing to come on board with me on this radical journey of cutting up our credit cards and going cash ONLY! We are 3 months into our "Financial Freedom" journey, but we are hopeful for what's up ahead. Although we may not see the light at the end of the tunnel today, we know that light is there and we are working toward it one debt at a time. We are making huge sacrifices and it is brutally uncomfortable most of the time! However, we are committed to plow through and cross over to the other side. The story of debt has ended and we are now rewriting a new story of financial redemption and restoration. Stay tuned because this is going to be a long ride... |
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I'm using this space to simply share the meaningful things that burn my heart and the random things that run through my mind. Simply desiring more vulnerability and authenticity in my life. Categories
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March 2020
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