The art of mastering your personal finances is never a cookie-cutter approach. It’s personal. And you need to do what is right for your situation.
Saving money does not come naturally to all people. Investing makes most people nervous because it seems so intricate. And yet, we all should be doing it. But as the saying goes: Build the well before you need it.
On today’s episode of The His & Her Money Show, Todd Kunsman, who works in marketing, tells us about his journey to financial freedom after a job loss. Raised in a middle-class family, no one taught him about investing so he had to go and find financial savvy out for himself.
The Pile of Debt
After college Todd had about $25,000 in student debt and a car loan of $23,000. There wasn’t much left over from his salary to save. He felt stuck living from paycheck to paycheck. After losing his job, just before Christmas, he realized he had to make changes.
Fortunately, he had a side hustle doing contract work. He was also reading books at this time like Your Money or Your Life and Rich Dad Poor Dad which helped him shape his mindset.
When he lost his job he was about $40,000 in consumer debt. He was saving about 1% at that point. He had to move back with his parents at the age of 27, he helped with rent and could save 25% of his money. In 2015 he got another job and started saving 55%. His goal now is to save 65% of his income.
Making Proper Adjustments
He learned as much as he could about marketing and by doing so, he doubled his income. Instead of buying a flashy car and spending the money, he used the extra money for his savings. Moreover, he saved his money by placing some in a savings account at the bank, the majority goes to a brokerage account.
This account is where he does some index investing, and the rest goes into a Roth IRA for retirement. He tackled paying off his debt and investing his money at the same time.
Todd learned that patience and taking time to learn are key attributes you need to pay off your debt and save your money. Furthermore, his parents support him on his journey, and his dad talks to him about finances as he is getting closer to retirement.
Todd suggests if you are at the beginning of your journey of saving and paying off debt, make a spreadsheet to see your whole financial picture. Look online for people that have done what you want to do: pay off debt and save money. Read books on the subject. See how you can improve your skills in your career. Start something on the side to make extra money.
Get in touch with Todd at https://investedwallet.com/
WHAT YOU WILL LEARN
- Why reading books will help you on your journey
- There are a lot of free information available online, you just need to look for it
- How to save more money
- Make a spreadsheet to see your whole financial situation
- How to become a digital marketer
- Why starting a side hustle is important
RESOURCES MENTIONED
- Your Money or Your Life by Vicki Robin
- Rich Dad Poor Dad by Robert T. Kiyosaki
- The Bogleheads’ Guide to Investing by Taylor Larimore
- Money Master the Game by Tony Robbins
- Unshakeable by Tony Robbins
- The 4-Hour Work Week by Timothy Ferriss
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Today’s show was sponsored by Crush My Mortgage. If you are ready to accelerate the process of paying off your home mortgage and become truly financially free once and for all then enroll in our brand new online course Crush My Mortgage.
