My friend Anne did an amazing thing last week: she lit her
second mortgage on fire. It was a rite of passage that was the result of four
years of persistence, prioritization and stretching out of her comfort zone.
I often weave Anne into my writing. Not because she’s
fabulously rich, but because she’s fabulously consistent. And we all know from
The Tortoise and The Hare fable who wins the financial race: the tortoise. When
I met her, she was already living a life of intentionality. Every year, she
would choose five birthday goals: three personal, two professional. With great
care, she would set out and achieve them.
When I was curating my first prototype Finance Boot Camp,
she was an obvious choice. I needed people in that group who were going to
declare with honesty what they needed to do with their finances and then do it.
I didn't know many details about her finances at the time. I didn't think she
was in misery. But I knew she was like many of us, living a little paycheck to paycheck, not earning as much as she was worth and not prioritizing savings and
retirement. And then the inevitable happened: her home needed a new roof. She
had no savings. She had boxed herself into a corner. Either forgo the badly
needed roof, which isn't really an option, or take out a second mortgage.
She hated doing it. She had long been on a mission to pay
off her home, and was closer than many because she bought it in her 20’s and hadn't succumbed to the ever enticing “home equity windfall” that so many had. The
thought of more debt was dreadful to her, as was the thought of another monthly
bill.
In her words from her Facebook post:
"Five years ago I was stuck in a job I hated, $23K in debt, & barely able to make ends meet. I felt horrible. With the support and skills I learned at Finance Gym, I turned it all around. I'm SO much happier today -- on many levels. If finances are a problem, or you simply want to get better at planning, financial accountability and building toward your dream, please consider www.thefinancegym.com. It works. The proof is in the burn."
Every person who has ever been in a Finance Boot Camp has a
story of financial transformation to tell, and I greatly appreciate that she
always calls out Finance Gym as the impetus for her financial turn around. But
the truth is, Anne has done all of the heavy lifting. She’s the one who gets
the kudos.
If you want Anne’s secret formula to financial success, here
it is. With great consistency:
- Be honest about your financial facts with yourself and select others,
- Be honest about your financial feelings with yourself and select others,
- Find cheerleaders to help you along when it gets rough (because it will),
- Take courageous action in finding work that you love, and that compensates you at a level worthy of your skills and talents,
- With every salary increase or windfall, mindfully allocate it to savings, retirement and debt repayment, and
- Be measured about your spending (not frugal, which leads to all or nothing behavior.)
Did I mention consistency? Above all else, the thing that
has shifted Anne’s financial reality so dramatically is that she’s made her
financial life a little bit better every single month. Over time, it’s added up
to all of her debt being paid off (other than her first mortgage) and a
substantial amount of money in retirement, savings and reserves. (Yes, that’s
three different types of savings.)
Congratulations Anne! You’re an inspiration. I look forward
to the ceremony when you light your first mortgage on fire!
- Stacey Powell
Finance Gym offers personal finance coaching in professionally facilitated peer-advisory groups.
Reach your financial goals. Get motivated. Get support. Get results. Are you ready?
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