Road to Financial Freedom: Part 1- Get A Grip ~featuring~ Jade of D.I.V.A Rules

Happy Monday D.I.V.A.s !!!!

Hope today brings you nothing but positivity, productivity, and possibility. We received great reviews about Dana’s post regarding financial independence. While everyone was so completely motivated to start anew and get our money right, me included, I found myself stuck with “How do I start????”. Well ladies look no further. The next three Monday installments will be your go to guide for starting your more financially conscientious lifestyle. Now many of us are going to be starting at different entry points. If you’re like me, somehow Bills (Loans, credit card, rent, Mixed Martial Arts- don’t even get me started) have become my significant other. Wherever you’re starting, we are going to work together to get us on the road to financial freedom. Feel free to chime in with some additional tips. Happy Saving!!!

If any of you don’t know Suze Orman, get to know her. She is a very financially savvy woman who has become an expert of saving money, making money, and growing money. According to her 2010 Financial To-Do List as shown in O Magazine there are three stages in gaining financial confidence. She refers to them as:

• Get A Grip: Where you are today- your current income, debt, etc.
• Find Hidden Savings: Growing what you have
• Build Security: Knowing where to put the money you save

Today we will tackle Get A Grip!!!!

Step 1
Track Your Spending: If your spending more than you’re making, then guess what, you will not save a thing. Sometimes spending gets away from us with all the many activities or events that make unexpectedly come up. But in order to start saving we have to get more diligent about this.

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  Action: Make sure to keep an accurate account register with you at all times. Additionally gather your credit card and bank statements and head to suzeorman.com. Use her Expense Sheet to get a picture of your monthly outflow

Step 2

Calculate Your Net Worth-Google search “net worth calculator” and input your information. This will show us our overall financial self and is a major key to financial security. What are our assets minus our debts.

Caution…. You may want to grab a glass of wine or something before doing this step, because sometimes the truth hurts.

• Action: Google search “net worth calculator” and input your information. Come to Jesus with what you see and take the time to make some necessary adjustments or financial plans.

Step 3

Check your Credit Profile- The importance of your credit score is beyond belief. Did you know that your credit score could influence you getting a job? Worse yet, a bad score will get you the highest interest rates on your credit cards and loans, etc.

 Caution…. Keep that wine flowing

• Action: Go to annualcreditreport.com to get your annual free credit reports. Yes it’s free. Look through the reports carefully to ensure all of your information is correct. Remember this number will proceed you in the financial world so make sure it truly is representative of you. Once you have reviewed and corrected, then go to myFICO to purchase your FICO credit report. This is not free (~$16) so make sure everything is correct before buying the FICO report.

Step 4
Cut Spending by 10 percent- I don’t have to tell you that the economy has changed, many of us are feeling the burden in some capacity. Just as the economy has changed, so to our habits must change. In order to save more (our ultimate goal), we need to spend less. Sound simple right? Lol

• Action: Take that great Expense sheet from Step 1 and burn it. Just playing. Take the sheet and circle or highlight every expense that is a want. Wants are things we truly do not need. So you will need to be honest with yourself. You may need shoes for work, but want Manolo’s. Once again make some necessary adjustment to either eliminate or reduce these costs.