The author says to skip guilt and spend on what you like
We all want to be able to spend our money without worrying about slipping into the deep edge of our debt. The challenge is to figure out how to make it a reality.
They both worked on crippling debt and appeared on the other side in several lessons where they learned some lessons. Jen paid off $78,000 in debt in two years, Jill paid $60,000 and lived in the RV when she did.
I asked Jen and Jill to share some of their advice. Below is an excerpt from the conversation edited for length and clarity.
Kelly Hannon: I start the book by saying, “The real chances for us to achieve our financial goals will take some time.” Elegant?
Jill Sirianni: For most of us, we are not washed away with cash. And it will take years, if not decades, to achieve some of these big financial goals, such as debt freedom and investment in retirement.
I think we are surrounded by a bit of bamboo, as some of these clickbait articles tout “Look at this young man who has paid off his six-figure debt in six months.” If the average income earns around $60,000 a year, that’s not the average person’s experience.
It’s about easing our expectations and realizing that this is more than a marathon. You can get pit stops and rest along the way.
He writes that spending is “not what we do, who we are,” and that “expenditure is a skill.” Can you explain a little?
Jen Smith: It’s a take from my beloved Disney Channel original film, “Brink!” We have been told many times in financial media that you are a Spender or a Saber. You’re a shopping addict or spending. The way we spend our money is all our identity.
In reality, we are all spending money, and there is a lot of guilt and shame that comes with spending money on things that are “not necessary.” We remove that negative connotation. Spending is a skill and we can all learn it – and we can all make it better. When you practice and deliberate about it, you can make it better.
What is value-based spending?
Jill: What we are told should not be important, it is truly important, it is important to us, it is important to us, it is important to us, it is important to us, it is important to us, it is important to us, it is important to us, it is important to us, it is important to us. I recognize it.
There are so many messages out there about what we should do with money and how to spend it. What we really want is what we call four FSs. And it’s family, friends, faith, and fulfilling work. For most of us, these are things we actually want more. Often we spend to get more of these things, but we don’t always have to. When you can tell Jesus, how it matches these four FSs, it’s really easy to say no to the rest. It helps reduce impulsive spending and reduce spending on social media and the impact of others around us.
What is the role of “90 Day Transaction Inventory”?
Jen: I made a budget and then I didn’t stick to it and said I’ll start next month. And I didn’t stick with it again either. This cycle lasted for several months before I gave up. And in reality, I had budgeted that was not based on facts or data from my life. I was making it based on what I thought I should spend.
With a 90-day trading inventory, you can plan based on your actual concrete spending. It gives you a big picture without being overwhelmed by you. Put all transactions in Google Sheets. You can sort by date based on category, location, and date. The pattern will begin to appear.
Talk about the illusion that more money will solve all our problems.
Jill: We are very entrenched in a culture where we can throw money to solve problems we may encounter. And in some respects, it’s kind of true. We can buy many things, even cheaply, so that we can address some of the issues we face.
But the thing that really matters to us is not able to buy money. And more time with family, meaningful time with friends, participation in faith activities that are important to us, the ability to set our hands into meaningful work – whether that is volunteer work In our careers – these are things we can actually buy with money. They may take money to make them pursue. So, although you need this resource, you cannot actually purchase a path to belongings, connections.
It doesn’t matter how much money you make if you don’t deal with your spending habits. Our spending habits and our actions rise to meet those things. Get a handle that suits your habit: how can you engage in money? What am I spending on? What am I impulsively spending on? That way, no matter what our income levels look like over the course of our lives, we can really build a solid foundation.
Jen Smith (center) and Jill Sirianni (right), the host of the Frugal Friends podcast, will be working on the basics of how to control spending. Tip: It’s not really about following a strict budget. (Photo courtesy of the author)
You should note that the seasons of your life are important when it comes to your spending habits. explain?
Jen: I have two little kids and a lot of my money and time is headed towards them. But that time is limited to how much I can work and how much money I can make.
And I would be happy to do it because I want to honor my season first and foremost. And my husband and I were planning to do this. This is one of the reasons why I paid off my $78,000 debt when I first got married. So you can do this.
How are one important spending decisions key to setting people financially?
Jill: Focusing on the key few that make up your budget is what we believe is really helpful to be very efficient in managing your money well, with regard to some of the small parts we spend every month. It’s there.
20% of the categories we spend actually accounts for 80% of monthly to month spending. They are big threes, including food, transportation, housing. If you can make really wise decisions in these three categories first, it’s either easy or unnecessary to make some of these other small categories, even making large changes in the long run. It will become.
How can I make the most of my home purchase? Depending on the type of home you choose to buy, you can save hundreds of thousands of dollars.
What is the most radical concept you have in this book?
Jen: I believe that debt is neutral. Some debts are beneficial, while some debts are not that beneficial to you. It depends on the person. Those who take many student loan debt and get a high-paying job that causes them for the future – it is beneficial. People who take out the same loan for the same degree and do nothing with it, aren’t that beneficial. So, while that’s not for everyone, debt is morally neutral.
